Evergreen Loan


DEFINITION of 'Evergreen Loan'

A loan that does not require the principal amount to be paid off within a specified period of time. Evergreen loans are usually in the form of a short-term line of credit that is routinely renewed leaving the principal remaining outstanding for the long term.

Also called a "standing" or "revolving loan".

BREAKING DOWN 'Evergreen Loan'

Credit cards and checking account overdraft lines of credit are widely-used as evergreen or revolving loans. Evergreen loans are a useful type of personal credit because the user does not need to reapply for a new loan every time they need to use it.

  1. Credit Card

    A card issued by a financial company giving the holder an option ...
  2. Checking Account

    A transactional deposit account held at a financial institution ...
  3. Overdraft

    An extension of credit from a lending institution when an account ...
  4. Line Of Credit - LOC

    An arrangement between a financial institution, usually a bank, ...
  5. Credit

    1. A contractual agreement in which a borrower receives something ...
  6. Open-End Credit

    A pre-approved loan between a financial institution and borrower ...
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