Floor Loan Law and Legal Definition

Floor loan is the minimum loan that a lender agrees to advance in order to enable the builder to begin construction and development of a project. It is mostly associated with mortgage and property loans. In this, the lender states a minimum amount that it is willing to lend on an approved loan. The balance of the amount is payable if and when the borrower meets certain conditions, such as minimum occupancy levels or completion of certain milestones.