flat loan(redirected from Flat Loans)
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.