How Do You Spell CALL LOAN?

Pronunciation: [kˈɔːl lˈə͡ʊn] (IPA)

The spelling of the word "call loan" is made up of two distinct sounds. The first sound, "kɔl", is made by combining the hard "k" sound with the open "ɔ" vowel sound. The second sound, "loʊn", is made up of a long "o" sound followed by the diphthong "ʊ". Together, these sounds create the word "call loan", which refers to a type of loan that can be recalled by the lender at any time. Proper spelling is important to ensure accurate communication and understanding in financial transactions.

CALL LOAN Meaning and Definition

1. A call loan refers to a type of short-term loan in which the lender can demand full repayment at any time, typically without prior notice. It is a borrowing arrangement that permits the lender, usually a financial institution, to "call" or demand the borrower to pay off the entire loan balance immediately. These loans are often used by financial institutions to provide liquidity to borrowers, particularly brokers and investors in the stock market.

   The call loan characteristic of being callable at any time distinguishes it from conventional loans that have fixed repayment terms and schedules. The lender usually sets an interest rate, often referred to as call loan rate or broker loan rate, which is typically a higher rate compared to other types of loans due to the flexibility and ease of withdrawal. The loan is usually secured by collateral such as stocks, bonds, or other marketable securities, which provides assurance to the lender in case of default.

   Call loans are commonly employed in margin trading, where investors borrow funds to leverage their investments in stocks or other securities. The loans provide the investors with the necessary capital to purchase additional shares or securities or to make speculative investments. However, the possibility of a call loan being called can be a risk to the borrower, as they must be prepared to repay the loan in full on short notice, which can potentially disrupt their investment portfolio and financial stability.

   In summary, a call loan is a short-term loan that can be demanded to be repaid by the lender at any time, often used in margin trading and secured by collateral such as securities, offering flexibility to the lender but posing risks to the borrower.

Common Misspellings for CALL LOAN

• xall loan
• vall loan
• fall loan
• dall loan
• czll loan
• csll loan
• cwll loan
• cqll loan
• cakl loan
• capl loan
• caol loan
• calk loan
• calp loan
• calo loan
• call koan
• call poan
• call ooan
• call lian
• call lkan

Etymology of CALL LOAN

The term "call loan" is derived from the combination of two words: "call" and "loan".

1. "Call" in this context refers to the action of demanding the repayment of a loan at any time, as requested by the lender. The lender has the ability to "call" or request the full repayment of the loan from the borrower on short notice.

2. "Loan" refers to the act of lending money or any valuable asset to another party with the expectation of repayment in the future, often with added interest.

When these two words are combined, "call loan" refers to a type of loan that can be recalled or requested to be paid back by the lender at any time.

Similar spelling words for CALL LOAN

• clean,
• gallon,
• calling,
• Callaham,
• call in,
• calean,
• clown,
• calluna,
• Callahan,
• Callen,
• call-in,
• Callan,
• callihan,
• colon,
• calahan,
• call on.

Plural form of CALL LOAN is CALL LOANS