What is a home credit facility?
A home credit facility is a unique type of loan wherein borrowers can combine the benefits of a regular loan with the features of a current account. In such a facility, a home credit account is created and linked to a loan account. Any amount of money deposited in the home credit account is transferred to the loan account.
This enables borrowers to pay lower interest on the loan amount. Moreover, the money is always available to the borrower in the form of an overdraft line. Home credit facilities are quite popular with self-employed individuals and small businesses as it offers ready availability of funds at lower interest rates.
What is a standby credit facility?
A standby credit facility refers to a sum of money that can be borrowed in part or full as part of a credit facility. This sum of money must not exceed a predetermined amount and borrowers can access this money as and when needed.
Standby credit facilities are very popular with businesses as it allows them to guarantee their ability to pay clients. In such a case, a standby credit facility works exactly in the same manner as a performance bond. It can also be used as a backup source for funds in case the primary funding source fails.See also Cash Express and Oasis Cash Nationwide