In a ________ loan,the lender may require the entire principal to be repaid in one lump sum upon maturity or in equal or unequal installments.

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A term loan is a type of loan in which the borrower receives the entire principal amount at once and is required to repay it in predetermined installments over a set period. These payments can be equal or unequal and may include a balloon payment at the end of the loan term, requiring the entire remaining principal to be paid in one lump sum. In contrast, a revolving loan allows the borrower to access a set amount of credit on an ongoing basis, while an amortized loan requires equal payments of principal and interest over the life of the loan. A rate loan is not a common financial term.

In a ________ Loan,the Lender May Require the Entire Principal