Loan Covenants

Business, Legal & 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.

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
Modern Language Association (MLA):
Loan Covenants. Payroll & Accounting Heaven Ltd. July 14, 2020
Chicago Manual of Style (CMS):
Loan Covenants. Payroll & Accounting Heaven Ltd. (accessed: July 14, 2020).
American Psychological Association (APA):
Loan Covenants. Retrieved July 14, 2020, from website:

Definition Sources

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

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

This glossary post was last updated: 9th July, 2019 | 2 Views.