A loan that must be paid on demand from the lender. Demand loans are often used to fund margin accounts; alternatively, they are common for personal loans with no set maturity. Demand loans often require collateral and are also called call loans. See also: Margin call.
A loan that may be terminated at any time by either party. For investors, a call loan means bank loans to stockbrokers for the purpose of carrying customer margin borrowing, using securities as collateral. The rate of interest, similar to that on other high-quality short-term loans, varies over time. Brokerage firms usually charge customers the rate on call loans plus an additional 1% or so depending on the amount borrowed. Also called broker call loan. See also broker's loan.
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