In a line of credit, an eligible loan amount will be fixed as a limit. Withdrawals to the extent of the limit can be made any number of times as per one's requirement. Interest will be charged on the amount utilised. Part payments can be made when surplus funds are available. The same can be withdrawn when required. There will be a fixed amount available throughout the tenor. The limit might drop (dropline facility) along with the tenor depending on the cash flow or can be fixed throughout the tenor. Interest has to be paid as and when due and the principal is repaid at the end of the tenor.