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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https://payrollheaven.com/define/loan-covenants/
Modern Language Association (MLA):
Loan Covenants. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 28, 2020 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: February 28, 2020).
American Psychological Association (APA):
Loan Covenants. PayrollHeaven.com. Retrieved February 28, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/loan-covenants/

Definition Sources


Definitions for Loan Covenants are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

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