Non-Recourse Loan

The difference between a Limited-Recourse Loan and a Non-Recourse Loan is really one of emphasis. The term Non-Recourse Loan tends to be used by Sponsors, who are thereby emphasising that once they have injected their base Equity there is no further obligation on them. Lenders tend to use the term “Limited-Recourse Loan” rather than “Non-Recourse Loan.”