Endfällige

Endfällige is a German term that translates to "final payment" or "due at maturity" in English. It is most commonly used in finance and legal contexts to describe a debt, loan, or financial instrument that is repaid in a single lump sum at the end of its term. This is in contrast to amortizing loans where payments are made periodically over the life of the loan.

In the context of loans, an endfällige loan means that only interest payments are made during the loan term, and the entire principal amount is due on the final payment date. This structure is often seen in certain types of mortgages or business loans. For example, a bond with an endfällige structure will pay regular coupon payments to the bondholder, and the principal amount of the bond will be repaid to the bondholder on the maturity date.

The term can also appear in other financial products. For instance, life insurance policies that build cash value can be structured as endfällige. In such cases, the policyholder receives the accumulated cash value, along with any death benefit, in a single payout at a specified future date or upon the occurrence of a certain event. Understanding the endfällige nature of a financial obligation is crucial for borrowers and lenders to manage cash flow and repayment expectations accurately.