portfolio loan

Meanings

1. 1nouncountablefinancebusiness

   A mortgage that a bank keeps in its own accounts instead of selling to a government-backed buyer.

   Grammar: Countable: one portfolio loan, several portfolio loans.

   Patterns

   • a portfolio loan
   • qualify for a portfolio loan
   • keep a loan in portfolio

   Because his income was irregular, he applied for a portfolio loan at a small local bank.

   Portfolio loans often carry slightly higher interest rates than standard mortgages.

   The bank holds the portfolio loan on its own books for many years.

2. 2nouncountablefinancebusiness

   Any loan that a lender keeps in its own investment portfolio rather than selling it on.

   Grammar: Countable and used mainly in business writing about lenders' balance sheets.

   Patterns

   • hold a portfolio loan
   • sell a portfolio loan

   The credit union decided to hold the portfolio loan until it matured.

Word forms

Common combinations

qualify for a portfolio loan

Self-employed buyers may qualify for a portfolio loan more easily.

a portfolio loan program

The community bank launched a portfolio loan program for small businesses.

hold a loan in portfolio

The lender chose to hold the loan in portfolio rather than sell it.

portfolio loan rates

Portfolio loan rates are often a little higher than conventional ones.

Synonyms and how they differ

nonconforming loan

This stresses that the loan does not meet agency rules; a portfolio loan is defined by who holds it, though the two often overlap.

in-house loan

An informal term for a loan kept by the lender itself; portfolio loan is the standard finance term.

Word family

portfolio noun

A collection of investments or loans held by a person or institution.

Commonly confused: portfolio loan or conventional loan?

Practice

Make it your own

Write a sentence using “portfolio loan”, then check it and compare it with the examples above.

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