indexed loan

indexed loan definition - business

indexed loan

A loan, generally long-term, with its maturity, interest, principal, or payments subject to change based on some variable, such as the consumer price index. For example, the interest rate charged on a loan may be a function of the prime rate.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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