What term refers to periodic payments on a loan structured to ensure complete repayment by the end of the loan term?

The term "amortization" specifically refers to the process of gradually paying off a loan through a series of regular payments that cover both principal and interest. Each payment reduces the principal amount owed, and the structure of these payments is designed so that the entire loan balance is paid off by the end of the agreed-upon term.

This systematic approach allows borrowers to clearly understand how much they need to pay over time and provides financial predictability. Amortization schedules typically lay out each payment, showing how much goes toward interest and how much reduces the principal, helping borrowers track their progress toward full repayment.

In contrast, the other terms do not relate to this concept. The term "abandonment" generally refers to the relinquishing of rights or interests in a property. "Abatement" typically refers to a reduction or decrease, often in legal or regulatory contexts. An "acceleration clause" is a provision in a loan agreement allowing the lender to require immediate repayment of the entire loan amount if certain conditions are met, which does not pertain to the structured periodic payments designed for gradual repayment.