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Drawdown may refer to: Drawdown (economics), decline in the value of an investment, below its all-time high. Drawdown (hydrology), a lowering of a reservoir or a change in hydraulic head in an aquifer, typically due to pumping a well.
Quick Answer. According to Business Dictionary, a loan drawdown is when someone withdraws funds from a loan facility. Practical Law says lenders often allow drawdowns to give money advances to borrowers and set interest rates based on these short borrowing periods.