What term describes the date on which the principal balance of a loan becomes due and payable?

The term that describes the date on which the principal balance of a loan becomes due and payable is "Maturity." In financial terms, maturity refers to the point in time when the final payment of a loan must be made, at which time the remaining principal and any outstanding interest are due. This concept is crucial in loan agreements as it defines the lifespan of the loan and outlines the timeline for repayment. Maturity is often specified in the loan documents and can vary based on the type of loan and the terms agreed upon by the borrower and lender.

The other terms listed do not accurately encapsulate this specific meaning. "Due Date" is more commonly associated with periodic payments rather than the final settlement of a loan. "Expiration" generally refers to the end of a contract or agreement term without clarifying payment responsibilities. "Payment Deadline" suggests a specific time by which a payment must be made, similar to due date but does not fully encompass the finality of the loan balance being due. Thus, maturity is the most precise term for the scenario described.