KNOW THE RULES - Line of credit loans

How they work

A new type of personal loan - a line of credit, combines flexibility with the potential to save on interest.

Instead of drawing all the funds on day one, you can drawdown just what you need, when you need it - usually via ATM (automatic teller machine) or cheque book.

A line of credit is a convenient option with flexible repayments and it can be useful knowing your credit limit will be available when you need it. But it remains important to manage the debt wisely, and only draw on the funds when you need to.