What is a 'Commercial and Industrial (C&I) Loan'
A commercial and industrial (C&I) loan is any type of loan made to a business or corporation and not to an individual. Commercial and industrial loans can be made in order to provide either working capital or to finance major capital expenditures. This type of loan is usually short-term in nature and is almost always backed with some sort of collateral.
BREAKING DOWN 'Commercial and Industrial (C&I) Loan'
Commercial loans usually charge flexible rates of interest that are tied to the bank prime rate or else to the LIBOR. Many borrowers must also file regular financial statements, usually at least annually. Lenders also usually require proper maintenance of the loan collateral property.