Short-term variable rate loan that defers any unpaid interest charges above a pre-determined interest rate. A bow-tie loan rolls any interest due into the loan principal in a long-term loan from a bank lender or investor.
| Banking Dictionary: Bow-Tie Loan |
Short-term variable rate loan that defers any unpaid interest charges above a pre-determined interest rate. A bow-tie loan rolls any interest due into the loan principal in a long-term loan from a bank lender or investor.
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