Loan Drawdown

Definition

Loan Drawdown. An amount of money, drawn down by one party (the borrower) from a credit tranche made available by another party (the lender) at a specific point in time. Formal terms for the loan are defined in a Loan Contract.

This is not the amount owed at a specific point in time (that is the Loan Balance) but rather the amount drawn down as a loan. The balance of the loan changes over time as principal is paid off, and the balance of monies between the lender and the borrower is further impacted by interest payments, interest due and fees.

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.