Define: Loan Covenants

UK Accounting Glossary

Definition: Loan Covenants


Quick Summary of Loan Covenants


A Loan Covenant is an agreement made by the company with a lender of long-term finance, protecting the loan by imposing conditions on the company, usually to restrict further borrowing.



What is the dictionary definition of Loan Covenants?

Dictionary Definition


loan covenant is a condition in a commercial loan or bond issue that requires the borrower to fulfil certain conditions or which forbids the borrower from undertaking certain actions, or which possibly restricts certain activities to circumstances when other conditions are met.


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Full Definition of Loan Covenants



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Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/loan-covenants/
Modern Language Association (MLA):
Loan Covenants. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 16, 2019 https://payrollheaven.com/define/loan-covenants/.
Chicago Manual of Style (CMS):
Loan Covenants. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/loan-covenants/ (accessed: September 16, 2019).
American Psychological Association (APA):
Loan Covenants. PayrollHeaven.com. Retrieved September 16, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/loan-covenants/

Definition Sources


Definitions for Loan Covenants are sourced/syndicated from:


This glossary post was last updated: 23rd December 2018.