Call Loan

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DEFINITION of 'Call Loan'

A loan provided to a brokerage firm and used to finance margin accounts. The interest rate on a call loan is calculated daily. The resulting interest rate is referred to as the call loan rate.

INVESTOPEDIA EXPLAINS 'Call Loan'

Call loans use securities as collateral for the loan. It is important to note that a call loan can be canceled at any time.

RELATED TERMS
  1. Margin

    1. Borrowed money that is used to purchase securities. This practice ...
  2. Call Loan Rate

    The short term interest rate charged by banks on loans extended ...
  3. Loan

    The act of giving money, property or other material goods to ...
  4. Interest Rate

    The amount charged, expressed as a percentage of principal, by ...
  5. Initial Margin

    The percentage of the purchase price of securities (that can ...
  6. Margin Loan Availability

    1. The dollar amount in an existing margin account that is currently ...
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