An evergreen loan is a revolving line of credit that does not require the borrower to pay down the outstanding balance at any point prior to the maturity date of the loan. Evergreen loans are especially useful for borrowers that do not have the financial resources to pay down loan balances on a regular basis. They are more risky for the lender, who must wait until the maturity date to receive a paydown. Examples of evergreen loans are checking account overdraft arrangements and credit cards.
An evergreen loan is also known as a revolving loan.