Credit Line

Interest from 2% — no contract fee

Personal credit line Revolving credit Interest on usage Flexible limit Online application
3 000 €
Võrdle pakkumisi

A credit line is similar to a credit account — you have ongoing access to funds that you can use and repay repeatedly.

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What is a credit line?

A credit line (also called a credit limit facility) is a revolving loan limit granted to an individual by a bank or credit company. It works similarly to a credit account: you are assigned a maximum borrowing amount that you can draw from as needed. Interest is charged only on the funds actually used, not on the full available limit.

A credit line differs from a traditional loan in its flexibility. With a standard loan, you receive a fixed sum and repay it according to a set schedule. With a credit line, you can borrow and repay freely as long as you stay within the approved limit.

Credit line terms in 2026

  • Limit: 250 – 5,000 € (credit companies) / up to 25,000 € (banks)
  • Interest rate: 12 – 36% per year (depends on provider and creditworthiness)
  • Minimum monthly payment: typically 5 – 10% of the used amount
  • Limit renewal: automatic after repayment
  • Contract fee: 0 – 50 € (many providers charge 0 €)
  • Requirements: Estonian resident, age 18+, regular income

How does a credit line work?

Using a credit line is straightforward:

  • 1. Apply for a credit line and receive your limit (e.g., 2,000 €)
  • 2. Draw as much as you need (e.g., 800 €)
  • 3. Pay interest only on the 800 € you actually used
  • 4. Repay in installments — the repaid portion becomes immediately available again
  • 5. The entire cycle repeats without a new application

It is important to understand that the minimum monthly payment on a credit line often covers only the interest. To reduce the principal, you need to pay more than the minimum required amount.

Advantages and disadvantages of a credit line

Advantages:

  • Funds are always available without a new application
  • Interest only on the amount actually used
  • Flexible repayment schedule
  • Suitable for covering unexpected expenses and managing cash flow

Disadvantages:

  • Interest rate is typically higher than on bank loans
  • Making only minimum payments significantly extends the loan duration
  • Temptation to continuously use the available limit
  • Long-term usage can result in substantial total costs

Who is a credit line suitable for?

A credit line is a good choice for individuals who need a financial safety net for unexpected situations: car repairs, appliance replacements, or unforeseen medical expenses. It is also suitable for those with irregular income (e.g., freelancers, seasonal workers), since the repayment terms are flexible.

A credit line is not ideal for long-term financing. If you need a larger sum for a longer period, a personal loan is usually a more cost-effective option. Only use a credit line when you are confident that you can repay the drawn amount within a reasonable timeframe.

Content prepared by 123laen.ee specialists

Our team analyzes the Estonian credit market daily, verifies conditions and ensures data accuracy for every lender.

AM

Editor

Andres Mets

Analyst team

123laen OÜ

Verified

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1Mis on krediidiliin ja kuidas see toimib?
Krediidiliin on uuendatav laenuliin, mis võimaldab kasutada raha vastavalt vajadusele kokkulepitud limiidi piires. Tagasimakstud summa muutub taas kättesaadavaks. Intressi maksad ainult kasutatud osa pealt.
2Mille poolest erineb krediidiliin krediidikontost?
Krediidiliin ja krediidikonto on väga sarnased tooted. Peamine erinevus seisneb tagasimakse struktuuris — krediidiliinil võib olla paindlikum maksegraafik. Mõlemad pakuvad uuenevat limiiti ja intressi ainult kasutuselt.
3Milline on krediidiliini maksimaalne summa?
Krediidiliini limiit sõltub laenuandjast ja sinu finantsseisundist. Tavaliselt jääb limiit vahemikku 500–15 000 eurot. Suuremad limiidid on saadaval pikaajalise hea makseajalooga klientidele.
4Kas krediidiliini saab pikendada?
Jah, enamik krediidiliini pakkujaid pikendavad liini automaatselt, kui makseajalugu on hea. Limiiti saab sageli ka suurendada — selleks tuleb esitada taotlus pakkuja veebilehel.
5Mis juhtub, kui ei suuda krediidiliini tagasi maksta?
Kui tagasimaksega tekivad raskused, võta koheselt ühendust laenuandjaga. Enamik pakkujaid pakuvad maksegraafiku ümbertegemist. Tasumata jätmine kahjustab krediidiajalugu ja võib kaasa tuua inkassomenetluse.

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Borrower requirements

Main conditions for getting a loan

Minimum age 18 years

Must be at least 18 years old, Estonian resident

Regular income of at least €600/month

Regular income must be verifiable

Estonian resident or residence permit holder

Estonian personal ID and bank account

No active debt obligations or payment defaults

Checked via the payment default register

Valid email address and phone number

Required for application verification

Important notice!

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You have 14 calendar days to withdraw from the contract without giving a reason. Return the loan amount and accrued interest — the contract will be cancelled.

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You have the right to repay the loan early in part or in full at any time. The lender may charge compensation of maximum 1% of the amount repaid.

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