A line of credit is a credit facility granted by a bank or other financial institution to a government, business or individual customer that allows the customer to draw on the facility when funds are needed. A line of credit takes various forms, such as an overdraft limit, a loan, a special purpose loan, an export packaging credit, a term loan, a discount, a purchase of commercial paper, a traditional revolving credit card account, etc. This is a source of funds that can be drawn upon at the discretion of the borrower. Interest is only paid on the money withdrawn. Lines of credit may be secured by collateral or may be unsecured.