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Glossary term

Maturity Date

Definition

The maturity date is the day a loan is supposed to be fully paid off.

Technical definition

The maturity date is the date on which a loan's final payment is due and the obligation is scheduled to be satisfied in full.

Why it matters

It defines the loan's timeline. With balloon structures, the maturity date is when a large final payment may come due.

Example

A loan written for a set number of years reaches its maturity date at the end of that period.

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