draw down on the loan

Russula emetica

Senior Member
Russian - Russia
Continuing to struggle with the word draw.

There are so many ways in which I can express my disgust to all that banking-finance-business theme! But I'll try not to be so negative. Here's another example from the same OALD's entry:

They can draw down on the loan at any time.

draw sth down (from sth) | draw down on sth (especially NAmE) (BrE usually draw)
(finance) to take money from a fund that a bank, etc. has made available

Predictably, the explanation is muddying the waters rather than clearing up what's stated in the example sentence.

I take it to mean that they can withdraw some money from a back account, fund, whatever in order to pay back a loan they took earlier.

Fingers crossed.
 
  • Glasguensis

    Signal Modulation
    English - Scotland
    No. The bank has made money available, but they have not necessarily used it all right away. For example the bank approves a loan to me of up to $50,000. But I only need $10,000 straight away so I take that (and start paying interest on the $10 000). Later I need some more so I draw down another $10 000. I have now taken $20 000 and pay interest on this amount, not on the total amount the bank has approved. The point is that when I draw down from this loan it is automatic - the bank has already given permission and does not treat it as a new request.
     

    Russula emetica

    Senior Member
    Russian - Russia
    Gosh that's difficult. And they say all this financial mumbo jumbo was not invented for the express purpose of confusing and fooling people!

    Thank you, Glasguensis. Now I have to think how I should render the sentence into my language...
     
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