What does capped mean in finance?

A capped loan means that the maximum amount that you can borrow is a pre-determined amount. If your credit score isn’t high enough to get the maximum loan amount, a lender may still approve you for a smaller loan with some restrictions. For instance, they might require you to pay a higher interest rate than their regular rates.

What does capped mean in finance terms?

A capped loan means that the lender doesn’t allow the borrower to take more than a certain amount of money. For example, if you take out a $50,000 mortgage on a home, you’re capped at that amount. It’s important to note that the capped loan could still cost you more than just the principal if you end up taking out an interest-only loan.

What does capped mean in economics?

In a capped market, buyers of a particular asset can only purchase a certain number of shares. This prevents the price of the asset from rising too high and allowing a small group of investors to take over the market. A capped market is one in which the supply of a commodity is limited to an amount that is set by the government or the owners of the company.

What does capped mean in accounting?

Capped accounts are those that are closed at the end of the tax year. For example, a savings account is capped if you put in $10,000 or less at the end of the year, even if you put in more money. If you want to hold onto your extra money, you can open a certificate of deposit (CD) that has a lower interest rate but is guaranteed to return your money when you want it.

What does capped mean in money laundering?

The term capped is generally used with respect to financial crimes and refers to a ceiling on the amount of money a bank can legally take in from any single customer. It’s usually a fraction of what the bank could legally take in under ordinary circumstances, such as a fraction of the amount of money deposited by each customer.