Question

Distinguish between the two types of credit facilities

Answer 1

There are two different types of credit facilities which are available.

Explanation:

• the first type of credit facility is known as the non revolving credit facility. In case of non revolving facility in the credit cannot be used over and over again. The main reason because of the loan being taken for a particular reason such as educational loan and house loan.
• However other credit facilities mainly the credit card facilities and be used over and over again after the loan it has been paid. This is an example of revolving credit facility