krediidikonto

Krediidikonto, literally a credit account, refers to a bank or financial institution’s credit facility that allows an individual or a business to access funds up to a pre-approved limit. It is a form of borrowing where the borrower can draw on the facility as needed and repay the borrowed amounts with interest.

Typically, the facility is structured as a revolving line of credit or as a term facility with a set borrowing limit. Funds are drawn when required and interest is charged on the outstanding balance. Revisions to the credit limit, fees, and repayment schedules are determined by the lender and may depend on the borrower’s creditworthiness, income, and ongoing financial performance in the case of businesses.

Krediidikontotsuseid kasutatakse for day-to-day cash flow management, financing working capital, or covering short-term gaps between receipts and expenses. Consumers may have consumer lines of credit or overdraft-like facilities, while businesses may use more substantial lines of credit for inventory, payroll, or accounts payable. Interest rates are typically variable and may be accompanied by arrangement fees, annual fees, or usage-based charges.

Key terms include eligibility requirements, credit checks, security (secured or unsecured), repayment terms, and potential penalties for non-payment or excessive loan usage. The account generally affects the borrower’s credit history and score, influencing future access to credit. Regulation and supervision are provided by financial authorities to ensure transparency, consumer protection, and compliance with anti-money laundering and KYC standards.