Phrases with «loan covenants»

Loan covenants are agreements between a borrower and a lender that outline specific conditions and limitations that the borrower must adhere to during the term of the loan. These conditions can include meeting certain financial ratios, limitations on additional borrowing or investments, and maintaining certain levels of collateral. Essentially, loan covenants aim to protect the lender by ensuring that the borrower follows specific rules to safeguard the loan. Full definition

Sentences with «loan covenants»

  • When you are building your personal loan the covenant section is an excellent way for the lender and borrower to spell out any special rules they must follow. (loanback.com)
  • Interest cover ratio is also a regular feature of loan covenants requiring borrowers to maintain a minimum level of interest cover failing which may impose the immediate settlement of debt. (accounting-simplified.com)
  • if they have broken any significant promises made in loan agreements (called «loan covenant breaches») (moneysmart.gov.au)
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