The credit line represents the percentage of the market value and/or market value of a security, which by the credit giver with a financing for the collateral evaluation at the most one consults.

The height of this credit line depends on the kind of security and the risk joy of the credit giver.

If one multiplies the credit line by traffic and/or market value, then one obtains the loan to value ratio. The difference between 100% and the credit line is the safety anticipated payment with that the credit giver works.

Credit lines with real estates

Mortgage banks finance 60% loan to value ratio building societies finance 80% loan to value ratio business banks finance 80 - 90% of the market value. Presupposed also financings are beyond that possible for soil quality of the customer. With financings above the credit line the bank evaluates security in the context of the credit lines. The amount going beyond it is considered as unsecured loan, which is turned off alone to the soil quality of the applicant for the credit.

Credit lines with securities

Credit lines with securities play in particular with Effektenlombardkrediten a role. The credit lines are contractually agreed upon there. Possible values are:

• Shares/German default values 60% of the stock exchange value
• Shares/Nebenwerte 30% of the stock exchange value
• Shares/speculative ones of values 0% of the stock exchange value
• Government loans/to 3 years 80% of the exchange rate value
• Government loans/to 3 years 80% of the exchange rate value

Credit lines with other collateral

Possible credit lines are:

• Cash on account (e.g. savings balances) 100% of the account balance
• Life insurances 90% of the repurchase value

Articles in category "Credit line"

We found here 39 articles.

Related Websites

We found here 6 related websites.

• Credit Line - Financial Calculators from Dinkytown.net
  Financial Calculators,


• Credit Line Financial Counselling Services
  Wesley Credit Line Financial Counselling Services provides services to people in financial difficulties.


• Home Equity Credit Lines
  Using a credit line to borrow against the equity in your home has become a ... When you take out a home equity line of credit, you pay for many of the same ...


• Royal Credit Line - RBC Royal Bank
  Offering a range of personal loans, mortgages, credit cards and lines of credit for every credit need.


• What You Should Know About Home Equity Lines of Credit
  Once approved for a home equity line of credit, you will most likely be able to borrow ... If you were to draw only a small amount against your credit line, ...


• When Your Home Is on the Line
  A home equity line of credit is a form of revolving credit in which your home ... Plans generally permit the lender to freeze or reduce your credit line ...