An installment loan generally gives you a set amount to repay on an agreed schedule. A revolving line gives access to an approved limit that can be used again as principal is repaid, subject to the account terms.
Compare the two structures
| Check | Installment loan | Revolving line |
|---|---|---|
| Starting point | A set loan amount | An approved limit |
| Repaying principal | Reduces this loan’s balance | May restore available credit |
| Borrowing again | May need a new application | Subject to account terms and eligibility |
What can restore the available limit?
- Before borrowing₱10,000 available
- After drawing ₱3,000₱7,000 available
- After repaying ₱1,000 principal₱8,000 available
Assumes no other transactions, restrictions or limit changes. Paying interest alone does not repay principal.
Check how each draw is repaid
A reusable limit does not tell you the repayment schedule by itself. Some products give each draw a separate schedule; others use different billing arrangements. Check due dates, minimum payments where applicable, interest calculations and fees in the actual contract.
Available credit is not extra income
Before reborrowing, look at existing obligations as well as the new payment. A restored limit changes what you can borrow, not what you can comfortably repay.
These are general product concepts, not an interpretation of Philippine licensing rules. The numerical examples are hypothetical and do not represent the company’s future product terms.