A call loan is a loan that the lender can demand to be repaid at any time. It is "callable" in a sense that is similar to a callable bond. The key difference is that with a call loan the lender has the power to call in the loan repayment, not the borrower, as is the case with a callable bond.

What does it mean when a loan is callable?

A callable debt is a provision in a loan that allows the mortgage lender to require you to repay the loan in full before the end of the loan term. This may happen when the terms of the loan are breached, or it may happen at the discretion of the lender.

What kind of loans are callable?

Callable loans are a special type of loan that allows the bank to demand full payment if certain criteria aren't met. Though this can be a riskier type of loan for you the borrower, often you can get these types of loans for lower interest rates than non-callable loans.