Revolving credit is a flexible form of credit that allows borrowers to access funds up to a pre-approved credit limit and repay the borrowed amount over time. Unlike term loans, where a fixed amount is borrowed and repaid according to a predetermined schedule, revolving credit enables borrowers to repeatedly borrow, repay, and borrow again as long as they remain within the approved credit limit. It is one of the most commonly used credit facilities in personal as well as business finance because of its convenience and flexibility. The most familiar example of revolving credit is a credit card. Banks and financial institutions assign a credit limit based on the borrower's creditworthiness, income, repayment history, and financial condition. The cardholder can make purchases, withdraw cash within specified limits, and repay either the full amount or a minimum amount due. Once repayment is made, the available credit is restored, allowing further borrowing without the need to apply for a new loan. Businesses also use revolving credit facilities in the form of working capital lines of credit or cash credit accounts. These facilities help firms meet short-term financial needs such as purchasing inventory, paying wages, managing seasonal fluctuations, or handling unexpected expenses. Interest is generally charged only on the amount