Legal Definitions - time loan

Definition: A loan with a specified due date, usually of more than one year. Such a loan typically cannot be repaid before maturity without incurring a penalty.

Examples: A person takes out a time loan to buy a house. The loan has a specified due date, usually 15 to 30 years from the date of the loan. The borrower cannot repay the loan before the due date without incurring a penalty.

Explanation: A time loan is a type of loan that has a specific due date, usually of more than one year. The borrower cannot repay the loan before the due date without incurring a penalty. This type of loan is commonly used for large purchases, such as a house or a car. The borrower makes regular payments over the life of the loan until it is paid off in full.