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Revolving credit is a type of credit facility that allows a borrower to withdraw, repay, and withdraw again, up to a specified limit. It differs from term loans in that it provides continuous access to funds as long as the borrower does not exceed the credit limit and makes timely repayments. The interest is charged only on the amount utilized, not on the total credit limit. This flexible financial arrangement is commonly used in consumer credit (such as credit cards) and increasingly in development finance, especially in microfinance and Self-Help Group (SHG) operations. In the context of Self-Help Groups (SHGs), revolving credit plays a vital role ___ ________ _______ _____ _________ _________ _________ _______ _____ ___ __________ ______.
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