The primary commercial rationale for the introduction of a Revolving Credit Loan is to alleviate the administrative burden of top-up lending and thereby achieve cost efficiencies.
The CEO Forum Workstream and the Solution Centre cooperated to design and specify a solution that will address the inefficient practice of conducting full credit assessment for those borrowers who are ‘frequent’ borrowers. The prevailing process is inefficient for the borrower as they must provide all necessary documentation as they would as if they were a new borrower to the credit union.