A loan that is approved before the money is actually needed is called a(n)

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A loan that is approved before the money is actually needed is commonly known as a line of credit. It allows the borrower to withdraw funds when needed, up to a certain limit, instead of receiving a lump sum upfront. Collateral loans require the borrower to provide a valuable asset as security, mortgages are specific types of loans used for purchasing property, amortisation refers to the gradual repayment of a loan over time, and a security note is a type of debt security.

A Loan That Is Approved Before the Money Is Actually