Legal Definitions - demand loan

A demand loan is a type of loan where the lender can ask for the money back at any time, usually with a day's notice. It's different from a term loan, which has a set due date. When you borrow money, you have to pay it back with interest. There are many types of loans, like a mortgage loan for buying a house or a consumer loan for personal expenses. Some loans are secured by property or securities, while others are unsecured and based on the borrower's promise to pay.