What is defined as the maturity of a loan?

The maturity of a loan refers to the timeframe by which the borrower must repay the loan in full, including any interest that may be owed. This period is critical as it defines the duration over which the borrower is allowed to make repayments, ultimately leading to the completion of the loan agreement. Understanding the maturity of a loan helps both the lender and the borrower manage their financial expectations and obligations.

The other options, while they relate to aspects of loans, do not accurately define what maturity specifically means in the context of loan agreements. Approval time and interest rates pertain to different stages and features of the lending process, whereas the balance of an outstanding loan reflects the amount currently owed rather than the timeline for repayment.