Leveraged Loan
Generally speaking, a leveraged loan is a type of loan made to borrowers who already have high levels of debt and/or a low credit rating. Lenders consider leveraged loans to have an above-average risk that the borrower will be unable to pay back the loan (also known as the risk of default ). These loans generally pay higher interest rates to lenders because of the higher level of risk.
Concept at a glance
Definition and explanation
Generally speaking, a leveraged loan is a type of loan made to borrowers who already have high levels of debt and/or a low credit rating. Lenders consider leveraged loans to have an above-average risk that the borrower will be unable to pay back the loan (also known as the risk of default ). These loans generally pay higher interest rates to lenders because of the higher level of risk. [1]
Source-supported connections
Frequently asked questions
What does Leveraged Loan mean in the cited reference?
Generally speaking, a leveraged loan is a type of loan made to borrowers who already have high levels of debt and/or a low credit rating. Lenders consider leveraged loans to have an above-average risk that the borrower will be unable to pay back the loan (also known as the risk of default ). These loans generally pay higher interest rates to lenders because of the higher level of risk. [1]
Leveraged Loan connection map
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Sources and review dates
Reviewed 23 October 2026. Historical dates and award-time affiliations retain their original context. A review date is not an event date. Background sources are identified separately from official records.