ADVISED LINE Meaning and
Definition
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The term "advised line" refers to a financial concept commonly used in the banking and lending industry. It represents an agreed-upon credit limit established between a financial institution and a borrower. Essentially, the advised line is the maximum amount of funds that a financial institution is willing to extend to a borrower. This credit limit is predetermined based on an individual's creditworthiness, income, and other factors that influence their ability to repay the borrowed funds.
The advised line serves as a safeguard for both the borrower and the financial institution. For borrowers, it ensures that they do not exceed their preapproved credit limit, preventing them from falling into excessive debt or financial instability. On the other hand, the advised line also provides protection to the financial institution, as it sets a clear boundary for the amount of funds they are comfortable lending to a particular borrower.
Financial institutions typically assess and review a borrower's financial standing periodically to determine if the advised line needs to be adjusted. This evaluation includes factors such as payment history, income changes, credit score, and overall financial stability. Adjustments to the advised line can be made to suit the borrower's changing financial circumstances and ensure that the credit limit remains appropriate.
In summary, an advised line denotes the maximum amount of credit that a financial institution is willing to lend to a borrower, based on their creditworthiness and other relevant factors. It acts as a boundary to prevent excessive borrowing and serves to maintain a responsible lending relationship between the borrower and the financial institution.
Common Misspellings for ADVISED LINE
- zdvised line
- sdvised line
- wdvised line
- qdvised line
- asvised line
- axvised line
- acvised line
- afvised line
- arvised line
- aevised line
- adcised line
- adbised line
- adgised line
- adfised line
- advused line
- advjsed line
- advksed line
- advosed line
- adv9sed line
- adv8sed line
Etymology of ADVISED LINE
The term "advised line" does not have a specific etymology, as it is a combination of two commonly used English words., the meaning of the phrase can be deduced by understanding the individual meanings of these words.
The word "advised" is the past participle form of the verb "advise", which originates from the Latin word "advisare" meaning "to consider" or "to consult". In English, "advised" is often used to describe something that has been carefully thought out or recommended.
The word "line" has multiple meanings, but in this context, it is likely referring to a boundary, limit, or indicator. It originates from the Old English word "līne", which ultimately traces back to the Latin word "linea" meaning "string" or "line".
When combined, the phrase "advised line" generally refers to a recommended or suggested boundary or limit.
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