What is a Personal Line of Credit Draw Period?

First Republic Bank
April 27, 2021

It’s not always easy to decide which financial priority should take center stage. When it comes down to it, a Personal Line of Credit from First Republic Bank can help you manage your existing debt or fund large purchases.

In this article, we will focus on what does the draw period with a First Republic Personal Line of Credit mean and how can it help you in creating a flexible debt repayment strategy.

What is a draw period?

First Republic’s Personal Line of Credit has two stages:

  • The draw period is a fixed amount of time (2 years) during which a borrower may “draw” upon available funds, up to a limit. Like a credit card, repaid funds are again available for withdrawal, during the draw period only.
  • The repayment period is the set time where loan payments shift from a non-amortizing payment to a fully amortizing payment. Additionally, funds are no longer available to “draw” once the repayment period has commenced.

What happens during the draw period?

Once approved for a First Republic Personal Line of Credit, borrowers enter the draw period, when they may withdraw funds from the available credit line. During the draw period, funds may be drawn all at once, or on an “as-needed” basis, similar to credit cards or a home equity line of credit.

During the two-year draw period, borrowers pay interest only on what they draw and are able to make principal payments at any time (with no fees). Principal amounts repaid during the two-year draw period are available to be borrowed again.

Once the draw period is complete, the Personal Line of Credit repayment period begins. During the repayment period, borrowers make principal and interest payments throughout the remainder of their loan term.

How does the draw period help with long term financial planning?

A key benefit of the draw period interest-only payment is flexibility. Borrowers can choose between multiple strategies to repay their debt — making aggressive payments or setting up a minimum monthly payment to manage their cash flow as needed. With no prepayment fees with First Republic’s Personal Line of Credit, borrowers can progress towards their long-term financial goals at their own desired pace.

That’s especially true if  they are expecting a series of significant expenses — like with minor home improvements or medical expenses. The main advantage of limiting the draw to an “as-needed” basis is that it can reduce the amount of interest due, while keeping the overall balance low.

Borrowers looking to benefit from an aggressive repayment strategy can do so with the comfort of knowing that they can always draw funds again as long as they are repaying principal and are within the draw period. On the other hand, interest-only payments are great for those looking to maximize their cash flow.

Please note that the Personal Line of Credit minimum is $65,000; maximum is the lesser of $350,000 or debt to be repaid at origination plus $100,000. Line of credit cannot be fully drawn at origination and borrowers must keep at least 10% undrawn at origination.

With low fixed interest rates and multiple repayment options (7 years, 10 years and 15 years each with a two-year draw period and a corresponding repayment period of 5 years, 8 years and 13 years respectively), First Republic’s Personal Line of Credit offers you the flexibility to customize your debt payoff strategy.

First Republic Personal Line of Credit Repayment Options

Loan Term

Repayment Period

7 years

5 years

10 years

8 years

15 years

13 years


If you’re interested in learning more about First Republic’s Personal Line of Credit, see your available fixed-rate options using this personal line of credit calculator and connect with a banker.


First Republic’s Personal Line of Credit – access funds with fixed rates from 2.95% APR (with discounts)1.

1. Annual Percentage Rate. Rates effective as of 05/02/2022 and are subject to change.

If the Account is closed, the rate will increase by 5.00%. Rates shown include relationship-based pricing adjustments of: a) 2.00% for maintaining automatic payments and direct deposit with the Account, b) an additional 0.50% for depositing and maintaining a deposit balance of at least 10% of the approved loan amount into the Account, and c) an additional 0.25% for depositing and maintaining a deposit balance of at least 20% of the approved loan amount into the Account, with the option to deposit up to half of that 20% into an Eagle Invest account.

Banking products and services are provided by First Republic Bank, Member FDIC and Equal Housing Lender

Eagle Invest is an investment advisory service offered by First Republic Investment Management, Inc., and sub-advised by BlackRock FutureAdvisor, Inc. (FutureAdvisor). First Republic Investment Management, FutureAdvisor and Fidelity Investments, Member FINRA/SIPC, are unaffiliated SEC-registered investment advisors. FutureAdvisor is a registered trademark of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. $5,000 minimum investment required.

Investment Advisory Services are offered through First Republic Investment Management, an SEC-Registered Investment Advisor and a wholly owned subsidiary of First Republic Bank.