Kreditsumma

Kreditsumma is a term used in Swedish financial practice to describe the total amount of credit available or extended under a loan or credit facility. The exact meaning depends on the contract and regulatory context, and it can refer to the approved limit or the drawn amount.

In consumer credit and cards, kreditsumma usually denotes the maximum amount the lender allows the borrower to borrow—the credit limit. The borrower can draw up to this limit; the portion used becomes the outstanding debt, while the rest remains available credit.

In loans or lines of credit, kreditsumma can refer to the nominal amount granted or the current outstanding principal. When described as outstanding balance, it is the remaining principal to be repaid; interest accrues on that amount.

In accounting and reporting, banks may present kreditsumma as the credit exposure or liability related to the borrower's usable or drawn credit. The contract and regulations define whether it denotes the limit, the drawn amount, or the outstanding balance.

Example: A credit card is granted with a kreditsumma of 100,000 SEK. If 40,000 SEK is spent, the outstanding kreditsumma is 40,000 SEK and the remaining available credit is 60,000 SEK. If the facility is drawn to 80,000 SEK, the outstanding balance becomes 80,000 SEK, with 20,000 SEK still available.