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Simple English definitions for legal terms
call loan
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A quick definition of call loan:
A call loan is a type of loan where the lender can ask for the money back at any time, usually with a day's notice. This is different from a term loan, which has a set due date. The borrower usually pays interest on the loan. It's important to pay back a call loan quickly because the lender can ask for the money back at any time.A more thorough explanation:
Definition: A loan for which the lender can demand payment at any time, usually with 24 hours' notice, because there is no fixed maturity date.
Example: A broker call loan is a type of call loan that is made to a stockbroker to finance daily transactions. The lender can demand payment at any time, and the borrower must repay the loan within 24 hours.
Explanation: A call loan is a type of loan that is not fixed and can be called back by the lender at any time. This type of loan is usually used for short-term financing, and the borrower must be prepared to repay the loan quickly. The example of a broker call loan illustrates how this type of loan is used in the stock market to finance daily transactions. The lender can demand payment at any time, and the borrower must be prepared to repay the loan within 24 hours.