A revolving loan provides a borrower with a maximum total amount of capital available over a specified period of time. Unlike a long-term loan, the revolving loan allows the borrower to withdraw, repay and repay loans on available resources during the term of the loan. Each loan is loaned for a specified period, usually one, three or six months, after which it is technically repayable. The repayment of a revolving loan is made either by planned reductions in the total amount of the loan over time, or by the repayment of all loans outstanding at the time of termination. A revolving loan for the refinancing of another revolving loan, which matures on the same day as the second revolving loan, is called a „current loan“ when it is granted in the same currency and taken out by the same borrower as the first revolving loan. The conditions that must be met for the granting of a rollover loan are generally less onerous than the terms of other loans.  However, it is also akin to an overdraft, as the distinguishing feature of a revolving credit facility is that the availability period extends for almost the entire term of the loan (except at the end, when the last tranches must be repaid). This means that the borrower can take over and repay the available funds each time they choose the loan for the duration of the term (or „term,“ as we know). A revolving credit facility is usually a variable line of credit used by public and private companies. The position is variable because the interest rate can fluctuate on the line of credit. In other words, if interest rates rise in credit markets, a bank could raise the interest rate on a variable rate loan. The interest rate is often higher than the interest rates on other loans and changes with the premium rate or other market indicator.
Typically, the financial institution charges a fee for the renewal of the loan. A revolving credit facility is a form of credit issued by a financial institution that allows the borrower to withdraw or withdraw the borrower, repay and withdraw it. A revolving loan is considered a flexible financial instrument because of its repayment and new debt. It is not considered a long-term loan, as the facility allows the borrower to repay or resume the loan for a period of time. On the other hand, a temporary loan makes funds available to a borrower, followed by a fixed payment plan. The revolving component of the loan facility is reflected in the borrower`s ability to take a tranche for an interest period and, at the end of that interest period, decide whether to repay that tranche or „overflow“ it for the next interest period, unless a default has occurred and continues. It is likely that a renewable facility will have more restrictions than an overdraft. For example, there may be minimum termination times before an amount is advanced; the lender may set lower ceilings and limits for amounts that can be drawn at any time or for the number of interest periods that may exist in parallel at any time (to reduce the administrative burden on the lender) and the lender may reduce available resources towards the end of the period. Because the availability time for discounts is long, the commitment fee will be higher. (Commitment fees are fees payable to a lender for available but unused amounts and are calculated from time to time as a percentage of these unused funds. The commitment fee is not as much as the interest, because the lender does not take a risk on the money.) It is an agreement that allows the amount of the loan to be recovered in one way or another until the agreement expires. Credit card loans and overdrafts are revolving loans, also known as non-independence loans.
 Renewable loans are a type of credit that, unlike installment loans, does not have a fixed number of payments.