Revolveriluottoina

Revolveriluottoina is a Finnish term that translates to "revolver loans" or "revolving credit" in English. It refers to a type of flexible loan where the borrower can draw funds up to a pre-approved credit limit, repay them, and then redraw them again. This is distinct from a traditional installment loan where a fixed amount is repaid over time.

The key characteristic of a revolveriluotto is its renewability. As the borrower repays the principal, the available credit line is replenished, allowing for further borrowing. This makes it suitable for managing fluctuating cash flow needs or for ongoing projects. Interest is typically charged only on the amount of credit actually used, not on the entire credit limit.

These loans are often used by businesses for working capital purposes, allowing them to cover short-term operational expenses. Individuals might also encounter similar structures in the form of a line of credit, which functions on the same revolving principle. The terms and conditions, including interest rates and fees, can vary significantly depending on the financial institution and the borrower's creditworthiness. Repayment schedules can be flexible, often requiring at least an interest payment and sometimes a minimum principal repayment, with the option to repay the entire outstanding balance at any time.