The Update Credit Limit tool changes the borrowing limit on a Line of Credit loan. Use this tool when a borrower's credit limit needs to be increased or decreased — for example, based on a periodic review, a borrower request, or a risk assessment. If the limit is being reduced, you must provide an adverse action reason.
Availability: All clients Required permissions: None explicitly required Loan status: active Loan types: Line of Credit only
- From the agent-view Borrower Portal, open the Line of Credit loan and select Loan options > Update credit limit.
- For Line of Credit loans with draws, select the scope from the Applicable to dropdown: the line of credit or a specific draw. See Global behaviors — Applicable-to selector.
- Review the Current limit displayed on the form.
- Enter the New limit.
- If updating the line of credit (not a specific draw), enter the Adverse action reason explaining why the limit is being changed. This is required and may be used in regulatory disclosures.
- If updating the line of credit (not a specific draw), optionally select Send notice to borrower.
- If your company requires a Case ID, select a case from the Case ID dropdown. See Global behaviors — Case ID requirement.
- Select Update credit limit.
The new limit takes effect immediately. If a notice is sent, the borrower receives an email with the updated limit.
| Field | Description | Required | Values / Format |
|---|---|---|---|
| Applicable to | Whether to update the line of credit limit or a specific draw limit. | Conditional | Select: Line of credit only, or a specific draw. Only shown for LOC loans with draws. |
| Current limit | The current credit limit. | — | Read-only (currency) |
| New limit | The new credit limit. | Yes | Currency |
| Adverse action reason | An explanation of why the limit is being changed. Required for regulatory compliance. Not shown when updating a specific draw. | Conditional | Text area (required when updating the LOC, hidden for draws) |
| Send notice to borrower | Sends an email to the borrower about the credit limit change. Not shown when updating a specific draw. | No | Checkbox (only shown for LOC updates, not draws) |
| Case ID | The case associated with this action. | Conditional | Select from open cases. Required when forceCaseIdOnAgentActions is enabled. |