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Investments glossary

Loan Note Definition


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Quotes of the day:

Doctors pour drugs of which they know little, to cure diseases of which they know less, into patients of whom they know nothing.

— Moliere

A loan note is an extended form of a generic I Owe You (IOU) document from one party to another. It enables a payee (borrower) to receive payments from a lender, possibly with an interest rate attached, over a set period of time and ending on the date at which the entire loan is to be repaid. Loan notes are usually provided in lieu of cash at the payee’s request.

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