Having a Line of Credit allows you to be in a financial position to access money when you need it – for emergencies, home appliances, car repairs, farm and business operating expenses. How you use the funds is up to you. A line of credit allows you to overdraw your chequing account within a pre-established limit. A personal line of credit is accessible for Direct Payment purchases and ATM cash withdrawals.

Interest rates on a line of credit are lower than with credit cards, it makes sense to use a Line of Credit as a revolving source of cash. Interest is charged on the amount borrowed and only for the number of days it is used. If you don’t use it you don’t pay interest.

Features include:

  • Overdraft protection up to a pre-authorized limit
  • Instant access to funds for purchases, bill payments or trade credit (agricultural & commercial)
  • Interest much lower than a credit card calculated only on the negative balance in your chequing account on a daily basis, charged monthly
  • If your line of credit is not used, interest is not charged