Line of Credit Calculator

An overdraft is attached to your regular bank account, letting the balance go negative up to a limit. A line of credit is typically a separate, standalone facility with its own approved limit, independent of any specific transaction account.

Interest usually accrues only on the amount actually drawn at any time, not on the full approved limit, similar in principle to an overdraft but as a distinct facility.

Both types exist — some lines of credit are backed by collateral (like a business's assets) while others are unsecured, based on the borrower's creditworthiness.

Yes, that revolving structure is the key feature — as you repay drawn amounts, that capacity becomes available to draw again, up to the approved limit, without reapplying for a new loan.

No, unlike a term loan there's typically no fixed EMI — repayment is flexible, though minimum payment requirements and periodic facility reviews commonly apply.