# Update credit limit

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

## Update the credit limit

1. From the agent-view Borrower Portal, open the Line of Credit loan and select **Loan options** > **Update credit limit**.
2. 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](/servicing-operations/agent-only-tools/agent-tools-overview#applicable-to-selector).
3. Review the **Current limit** displayed on the form.
4. Enter the **New limit**.
5. 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.
6. If updating the line of credit (not a specific draw), optionally select **Send notice to borrower**.
7. If your company requires a Case ID, select a case from the **Case ID** dropdown. See [Global behaviors — Case ID requirement](/servicing-operations/agent-only-tools/agent-tools-overview#case-id-requirement).
8. 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 reference

| 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. |


## Related pages

- [Agent-only loan tools](/servicing-operations/agent-only-tools/agent-tools-overview)
- [Manage card status](/servicing-operations/agent-only-tools/agent-tools-card-status)
- [Manage payments](/servicing-operations/agent-only-tools/agent-tools-manage-payments)