Single-Payment Loan Law and Legal Definition
Generally, loans like car loans and mortgages are paid on a regular basis over the term of the loan. This reduces the amount due on the loan gradually. In single payment loan, the loan is due and payable in one lump sum, principal and interest. The entire amount is to be paid at the end of the period of time of the loan. Single payment loan is also known as time loan or balloon loan. The loan does not require periodic principal payments. Full amount is due at maturity.
Single payment loan is a term that denotes secured commercial loans generally given to a business person or a company having a fixed maturity. The amount is repaid with interest in one cumulative payment. Single payment loans are for affluent borrowers.
Legal Definition list
Related Legal Terms
- Acquisition and Improvement Loan [Veterans' Relief]
- Acquisition Loan [HUD]
- Acquisition, Development and Construction (ADC) Loan
- Adjustable Rate Mortgage Loan
- Administrative Cost of Issuing a Loan Guarantee
- Air Loan
- Allowance for Loan and Lease Losses
- Amortized Loan
- Automatic Premium Loan Option
- Average Agricultural Loan Customer