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Operate in a similar manner to your Credit Card in that
you may spend up to your limit on whatever you want so long as you make your
minimum monthly interest payment. The main features of the Line of Credit
include:
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Immediate access to funds up to an agreed limit.
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The freedom to use loan funds for any purpose.
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A simple "once only" application and approval process.
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The flexibility and convenience to pay extra and redraw at any time.
Interest is calculated on the daily balance of your Line of
Credit, so whatever you don't use, you don't get charged for.
You have access to your funds either through your ATM Card, Cheque Book, Bpay,
Phone Banking, or the Internet.
Some lenders give you the ability to set up many separate Line of Credit
accounts under the one master limit enabling you to separate your personal and
investment loans for income tax purposes.
Lines of Credit may also be packaged with other Home Loan products such as
Basic Loans, Fixed Rate Loans, and Standard Variable Rate loans.
Lines of Credit can be a very convenient and powerful financial tool. A strict
spending discipline is strongly recommended with this type of product.
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