14
Jul
When you take out a loan, trust between you and your lender is essential. Lenders need to be confident that you can meet your financial obligations, and loan covenants help establish that trust. These agreements set specific conditions and expectations, ensuring that both parties are on the same page throughout the loan period. Understanding how loan covenants and covenant tracking work can help you maintain a positive relationship with your lender and avoid any financial complications. What Are Loan Covenants? A loan covenant is a part of a loan agreement that outlines the borrower’s responsibilities and limitations. These rules ensure…