What is LOAN SERVICING?

Borrower's obligation of timely loan interest and principal periodic payments based on the loan agreement's terms. Credit-worthiness of a borrower comes from diligent loan servicing. The lending institution duly records this in the borrower's credit history. The lender also sends this information to other lenders as a credit report sharing.

More On This Topic




Link to This Definition

Did you find this definition of LOAN SERVICING helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary