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What is the difference between a personal loan and personal line of credit?

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A loan is a lump sum amount you borrow from a financial institution. To repay the loan, you make fixed payments over a predetermined period.

A line of credit is a revolving source of funds, up to an approved amount. You access the funds only when you need them. Any amount you repay is accessible to you again without reapplying. Unlike a personal loan, a line of credit lets you write cheques and make ATM withdrawals. Also, you only have to pay interest on the funds you use.

"SIMPLII FINANCIAL" and the SIMPLII FINANCIAL DESIGNS are trademarks of CIBC. "Simplii Financial" is a division of CIBC. Banking services are not available in Quebec.
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