Loans which have the following features: the borrower may use or withdraw funds from the account up to the pre-approved credit limit without giving prior notice to the MFI; the amount of the available credit may increase or decrease as funds are borrowed or repaid; credit may be used recurrently; there is no obligation to repay the borrowed funds on a regular basis.
The definition of the concept is consistent with Regulation (EU) No 1071/2013 of the European Central Bank of 24 September 2013 concerning the balance sheet of the monetary financial institutions sector (recast) (ECB/2013/33).