budget account

Quick Reference

A loan account conducted by a bank, in which the borrower decides the monthly repayment instalments and can continue to borrow up to a ceiling, which is expressed as a multiplier of the instalment. The multiplier is often 24 times (e.g. if the repayment instalment is £100 per month, the borrowing limit is £2400).

Subjects: Financial Institutions and Services.

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