Okuzeka
Finance & Banking vocabulary · Loans & Credit

Bullet loan

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, bullet loan means: A loan whose principal is repaid in one amount at maturity rather than gradually.

In Turkish: anaparası vade sonunda tek seferde ödenen kredi

How it is used

Bullet describes principal repayment; interest can still be payable during the loan's life.

Example sentences

  1. The company pays quarterly interest on a bullet loan that matures next year.

    Interest payments do not reduce the principal before maturity.

  2. Treasury scheduled funding for the bullet loan's single principal repayment.

    The entire principal creates one concentrated maturity obligation.

Common collocations

  • bullet loan maturity
  • bullet loan repayment
  • maturityThe date when a loan, deposit or bond ends and the principal must be repaid, or the length of time until that date.
  • principalThe original amount of money borrowed or invested, not including interest. Each loan payment usually covers some interest and some principal.

More terms: Loans & Credit

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This page explains English vocabulary for learners. It is not financial advice.