Nonproductive loan
(redirected from Nonproductive Loans)Nonproductive loan
A loan that increases spending power, but is used in business that does not directly increase the economy's output, such as a leveraged buyout loan.
Nonproductive Loan
A loan that does not increase an economy's total output, but may increase the economy's total spending power. One of the most common examples of a nonproductive loan is leveraged buyout. Nonproductive loans are made by commercial banks.