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What changes between revolving credit and a fixed-term loan?
Revolving credit can allow further use up to its conditions, while a closed-end agreement specifies a particular advance and repayment structure.
Similar monthly payments can therefore describe different obligations.
Compare access, costs and the repayment assumptions explicitly. A minimum payment on one product is not equivalent to a scheduled instalment designed to finish another under its stated terms.
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Definitions
- Total repayable
- Sum payable under the stated schedule and its assumptions; contingent charges and changes must be considered separately.
- Amount received
- Money actually made available to the borrower, which can differ from the stated loan amount if a charge is deducted.