Both options help you get money into your bank account. But they work differently — and for you, choosing the right one can save time, stress and money.

In short

A credit line is flexible and reusable. An instalment loan is structured and fixed. Which one suits you depends on what you actually need the money for.

What is a credit line?

A credit line gives you a limit — say, 2 000 € — that you can use whenever you need it. At a time that suits you, in an amount that suits you.
You only pay interest on what you actually use, not on the whole limit.

When you pay some of it back, that amount returns to your available limit. This way, it stays usable over time — ready for whenever you need it.

Good for:

• Unexpected expenses (car trouble, the dentist, that thing that just broke)

• Everyday expenses that vary from month to month

• Situations where you don't know exactly how much you'll need in advance

What is an instalment loan?

An instalment loan — small loan, renovation loan, beauty loan, health loan — arrives as a single lump sum in your bank account. You apply, get the full amount, and pay it back in fixed monthly instalments over an agreed period. The interest rate and monthly payment are fixed from the start.

Good for:

• A specific, planned purchase with a known price

• Projects where you want a clear repayment plan over a period that suits you

• When you prefer to know exactly how much you'll pay each month

Side by side

A few examples

Your car needs urgent repairs and the quote came in at 800 €. The amount is known, the cost is a one-off. → An instalment loan could be the best choice.

You're renovating your bathroom over three months and the costs trickle in — one week it's tiles, the next it's labor, the week after that it's the shower mixer. → A credit line lets you draw on the money as you go.

You want a financial safety net for whatever life throws at you. → Your credit line limit can sit unused on your ESTO account until you need it. There's no cost for the limit you don't use.

So — which one suits you?

If you know exactly how much money you need and you prefer a fixed repayment plan — an instalment loan is worth considering.

If you want flexibility, a reusable limit, and to pay only for what you use — a credit line may be the better choice.

Either way, applying at ESTO is fully digital, real-time, and takes less than a minute. Check your options with no obligation.

This financial service is provided by ESTO AS. Review the terms before signing a contract, and consult a specialist if needed. More information at www.esto.ee