What is LIMIT?

1. In General, this is a boundary of scope, be it authority, power, privilege, or right. Prescribed bounds. 2. In Banking, this is (1) The largest amount a bank will loan to a customer. Also known as a guidance line of credit. Banks keep its computation confidential and it may differ from bank to bank. (2) the value restriction by the country’s central bank. It limits loans to a single borrower. It is identified as a percentage of the institution’s capital. It is imposed on a bank or other lending institution.

More On This Topic



Link to This Definition
Did you find this definition of LIMIT helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary