Definition, Meaning & Synonyms
deposit-loan
noun
/dɪˈpɒzɪt loʊn/
Definition
A deposit loan is a financial service where a borrower takes a loan secured against their savings or deposit account, usually at a lower interest rate than unsecured loans.
Examples
- Maria took a deposit-loan to help cover her new car expenses.
- Many banks offer deposit-loans as an option for clients with substantial savings.
Meaning
This type of loan allows individuals to borrow money while using their existing deposits as collateral, thereby reducing the lender’s risk.
Synonyms
- Secured loan
- Collateral loan
- Asset-backed loan
