Indexed Loan

Indexed Loan

A loan with a payment that changes periodically. For example, the payment may increase if the Consumer Price Index rises to a certain level. Likewise, it may fall if the CPI drops. An indexed loan protects against risks such as inflation risk that would reduce the yield for the lender. Indexed loans are most commonly long-term loans as the changing payment reduces the uncertainty attached to any long term investment. See also: Variable-rate loan.
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The rating agency noted that French RLGs have already negotiated with banks to progressively exit their EUR/CHF indexed loan contracts, and have had support from a EUR 1.
Moody's notes that over the past few years, French RLGs have already negotiating with banks to progressively exit their EUR/CHF indexed loan contracts, as well as have had support from a EUR1.
Commercial Loan Software System for the indexed loans of the Housing Finance Fund of Iceland to replace the current system.
Calypso customers in Latin America are among the users and dealers of a range of asset classes including interest rate derivatives, settlement and non-settlement currencies, money market indexed loans, fixed income instruments, FX products and derivatives hedging, the firm said.
Interests should be charged only from declining sum of the loan, while indexed loans should be prohibited, the National Bank said.
Furthermore, and contrary to the popular view, real interest rates on indexed loans actually averaged slightly less than those on unindexed debt.