What are Revolving Loans?
Please note, the information submitted by you will be shared with participating lenders to fulfill your request to be matched with a participating lender(s). Participating lenders may perform credit checks with credit reporting bureaus, obtain financial reports through alternative providers and may also contact parties with whom you have business relationships to verify that you meet their lending criteria. Participating lenders may require you to pay a fee to cover the costs of any such inquiry. Participating lenders may not offer all loan products and loan products may not be available in all states. The states serviced by this website may change from time to time, without notice.
The operator does not guarantee you will be connected with participating lenders, receive conditional loan offers or enter into a loan agreement. The operator does not endorse, recommend or guarantee the price, loan amount, product, availability, rates or fees of participating lenders. We do not control and are not responsible for the actions of any lender. We do not have access to the full terms of your loan. For details, questions or concerns regarding your loan please contact your lender directly.
Revolving loans are also called Evergreen Loans. This type of loan allows the borrowed amount to be withdrawn and repaid in any manner the borrower desires until the lending arrangement expires. Examples of this loan are credit card loans and overdrafts.
Also in revolving loans, you can use the credit line within the limit whenever the need calls for it. Once the loan amount has been paid, the credit can be withdrawn again. You can write a cheque up to the current credit limit and pay only the interest of the amount used. The unpaid amount becomes a part of the outstanding amount of the following month.
According to MoneySense, a national financial education programme in Singapore, the characteristics of Revolving Loans are as follows:
• Loan tenure: Short term-revolving
• Interest rate type: Can be fixed or variable
• Interest rate: Usually higher than a term loan
• Loan can be tapped on after payback: Yes
• Fixed Installment payments: No
• Recallable on demand: Yes
• Repay anytime: Yes
Benefits of Revolving Loans:
• The loan amount is readily available as long as the arrangement term ends
• Accessibility of the funds (But you have to pay at least 15% of the loan)
• An option of debt protection as a result of death or permanent disability
• Pay only a minimum monthly fee when you utilize the loan
• Transfer funds from revolving loan to personal cheque account (ATMs, mobile banking, online banking, or banking app)