Demand Loan (Noun)
Meaning
A loan that is repayable on demand.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The bank granted a demand loan to the company with a variable interest rate that could change at any time.
- As the borrower was struggling to repay the debt, the lender decided to call in the demand loan immediately.
- Demand loans are often used for short-term financing needs, such as managing cash flow or covering unexpected expenses.
- The demand loan agreement specified that the lender could demand repayment of the full amount at any time without notice.
- By taking out a demand loan, the business owner risked having to repay the loan quickly if the lender chose to call it in.