The Difference Between Credit Limit and Draw Limit : Support

The Difference Between Credit Limit and Draw Limit Print

Modified on: Mon, 15 Apr, 2019 at 11:40 AM

- Available Credit can be refilled. As long as the payments are made back, the credit becomes available again.

- Available to Draw will never decrease. It behaves like highest watermark.

For example, if you set up a loan with $5000 of credit limit and $6000 draw limit. Then you make the following transactions:

1) Principle Advance of $5000.

2) Make payment of $1500.

3) Principle Advance $1500 (NLS will not allow you do this because even the available credit has $1500 but the Available to Draw is only $1000).

4) Principle Advance $1000 (This will work)

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The Difference Between Credit Limit and Draw Limit Print