Definition

1. Noun:
   • A loan that is repayable on demand: A "demand loan" is a type of loan that does not have a fixed maturity date or repayment schedule. The lender has the right to request full repayment of the principal and any accrued interest at any time.

Usage

• The term "demand loan" is used primarily in financial and legal contexts to describe a specific lending agreement. It is a formal term.
• It functions as a compound noun. The word "demand" modifies "loan" to specify its key characteristic: repayment is due upon the lender's demand.

Examples

• Noun:
  • The business secured a demand loan to manage its short-term cash flow needs.
  • Because it was a demand loan, the bank could call for repayment at any moment.
  • The terms of the demand loan made the borrower's financial position less predictable.

Advanced Usage

• "Call loan": This is a synonymous term used interchangeably with "demand loan," especially in banking contexts.
  • The call loan was used to finance the broker's inventory.

Variants and Related Words

• Loan (n): A sum of money that is borrowed and expected to be paid back with interest.
• Demand note (n): A promissory note that is payable on demand, similar in concept to a demand loan but often in note form.

Synonyms

• Call loan: A loan repayable on demand.
• At-call loan: A loan available for recall at any time.

Antonyms / Contrasting Terms

• Term loan: A loan with a specified maturity date and a fixed repayment schedule.
• Installment loan: A loan repaid with a set number of scheduled payments.

Noun

1. a loan that is repayable on demand