Transaction loan

Transaction loan

A loan extended by a bank for a specific purpose. Lines of credit and revolving credit agreements involve by contrast loans that can be used for various purposes.

Transaction Loan

A loan for a specific purpose. For example, a mortgage is a transaction loan because it is used to buy a piece of property, a fact both the lender and the borrower know when they begin the process. A transaction loan contrasts with a line of credit, which may be used for any number of purposes within a broad range.
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The transaction loan level diversity profile is in line with recently securitized pools during 2015.
He said micro transaction loans for small businesses and an urban farming project has also been established.

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