What is LOCK-IN PERIOD?

1. To generate a certain minimum return on the monies loaned, to cover the lender’s marketing and loan administration expenses, this is a period when loan full-payoff is not allowed without penalties, per the loan agreement. 2. Period a lender holds interest rate steady as agreed-to regardless of the market rate. Also known as lockup period.

More On This Topic



Link to This Definition
Did you find this definition of LOCK-IN PERIOD 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