A
demand loan is a below-market loan if interest is payable at a rate less than the AFR, while a term loan is a below-market loan if the amount loaned exceeds the present value of all payments due under the loan using the appropriate AFR for the month the loan is made.
17) As already noted, in Dickman, the Supreme Court held that an interest-free
demand loan of cash from a parent to a child resulted in passage-of-time gifts equal to the foregone interest.
For the purpose determining whether the employee has paid an adequate rate of interest loans are generally classified as either
demand loans or term loans.
The IRS is given authority to issue regulations treating any loan with an indefinite maturity as a
demand loan.
A
demand loan is a loan that is payable in full at any time upon the demand of the lender, or a loan with an indefinite maturity.
A term loan is defined as any loan which is not a
demand loan.
7 Kyodo A parliamentary panel decided Tuesday to summon the heads of two prominent moneylending companies suspected of allowing employees to use intimidation to
demand loan repayments, panel officials said.
A
demand loan is usually a short-term loan with no set repayment schedule.
5bn (USD48m/EUR36m) working capital
demand loan of Indian lignite mines and thermal power plants operator Neyveli Lignite Corporation Ltd (BOM:513683).
A below-market loan fits into one of two categories:
demand loan or term loan.
