Callable loan - Definition

A loan that must repaid upon the lender's demand is called callable loan. The lender's demand usually includes the balance due, plus applicable Interest. One of the more attractive features is that call Loans tend to be issued at a Rate of interest that is below the interest rte that is normally applied in standard bank loans.

Another reason for taking such as loan is having the privilege of early loan closure or prepayment, without any type of penalties for early payoff.The combination of these two factors can make the callable loan an attractive Option when an investor needs a source of short-term cash flow. Because of the nature of the loan it is also sometime referred to as a demand loan.

Terms near "Callable loan"

Callable stock
Called away
Called bond
Cambodia Riel
Cameroon Franc
Canadian Dollar
Cancel order
Cancellation of debt
Cancelled check
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