Framework Loan

A Framework Loan is a credit line granted by a credit institution to the borrower. The conditions are set out in a framework agreement and a separate credit account is created. The borrower can draw down credit from this account at short notice at any time within the agreed framework - either the entire amount or partial amounts. This is why the framework credit is sometimes also called a call credit.

It is similar to the overdraft facility on a current account. However, the credit limit of a credit line is usually more generous and the interest rate is lower than that of an overdraft facility.