Dictionary of Business Terms: indexed loan
indexed loan
long-term loan in which the term, payment, interest rate, or principal amount may be adjusted periodically according to a specific index. The index and the manner of adjustment are generally stated in the loan contract.
Dictionary of Real Estate Terms: indexed loan
indexed loan
a long-term loan in which the term, payment, interest rate, or principal amount may be adjusted periodically ccording to a specific index. The index and the manner of adjustment are generally stated in the loan contract.
Example: An Adjustable-Rate Mortgage is an indexed loan. At specific intervals the face interest rate on the loan may be changed according to variations in the specified index.
