The major attraction of a line of credit from the bank's point of view is that it eliminates the need to examine the creditworthiness of a customer each time it borrows money within the year.

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A line of credit is a pre-approved borrowing limit that a customer can draw from as needed, up to a certain amount. The bank sets the credit limit based on the customer's creditworthiness and financial history, and once approved, the customer can access the funds without having to apply for a new loan every time. This reduces the bank's administrative workload and speeds up the lending process. However, the bank still needs to periodically review the customer's creditworthiness to ensure they can continue to make repayments and are not at risk of defaulting on the loan.

The Major Attraction of a Line of Credit from the Bank's