Loan Term

Loan term refers to the length of time given to repay a loan in full, including both the principal and interest. It can range from short-term (a few months) to long-term (several years), depending on the type of loan and the agreement between the borrower and lender. The loan term significantly impacts monthly payments and the total interest paid over the life of the loan. 

Managing loan terms effectively with loan management software can help lenders optimize payment schedules and assess long-term portfolio performance.