What is the difference between the loan and a line of credit?

A line of credit is different from a regular personal loan because the latter gives you the cash right after getting approval. With a credit line, you can get cash via an ATM or complimentary cheque book whenever you need it, although you can also start using it upon the moment of approval.

Another major benefit of a credit line is that it can be flexible, many of the personal line of credit offers from banks here in Singapore set a minimum payment (for example 3% of outstanding balance) so payments can be light.