flat loan

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Flat Loan

A loan without interest. Investors who borrow securities for short sales often provide flat loans to lenders as collateral for borrowed securities. Personal loans are also commonly flat loans. In Islamic finance, flat loans are the only loans directly allowed.

flat loan

A loan without interest to the lender. A firm lending securities for a short sale is often compensated by the borrowing firm with a flat loan. Thus, the lending firm has use of the funds without charge.
References in periodicals archive ?
This resulted in almost flat loans YTD, following a 1 per cent contraction in the bank s loans in 1H2013.
In the face of a flat loans market, most rival lenders relied on the boom in remortgaging, a business that the Halifax as the country's biggest mortgage provider has traditionally shunned.