LENDING GLOSSARY
Maturity
Loan Maturity
The date when the remaining principal and other amounts become due.
What does Maturity mean?
The date when the remaining principal and other amounts become due. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
Maturity in context
A five-year term loan closing in June 2026 may mature in June 2031.
Why it matters in financing
Maturity can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related lending terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.