Definition of Loan rate

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TeachMeFinance.com - explain Loan rate



Loan rate

The term 'Loan rate ' as it applies to the area of agriculture can be defined as ' The price per unit (bushel, bale, pound, or hundredweight, depending on the commodity) at which the government will provide nonrecourse or recourse loans to farmers (or associations acting on their behalf). This short term financing at below market interest rates enables farmers to hold their commodities for later sale'.

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Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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