The beauty of these types of loans is that your repayments are calculated on the portion of the money you are using, which means your repayments are reduced if you are only using a small portion of your Line of Credit.

This product is similar in principle to a low interest rate credit card. It allows the borrower to access any repaid funds up to the original loan amount. Borrowers can choose to repay the interest only, or they can make principal payments also.  Due to the nature of this facility, the borrower needs to use the same discipline as they would when using a credit card.