endfällig

Endfällig is a German term that translates to "final" or "due at maturity" and is commonly used in financial contexts, particularly in relation to loans, bonds, and other debt instruments. It signifies that a payment or the entire principal amount of a financial obligation is due and payable on a specific date.

When a loan or bond is described as endfällig, it means that the borrower is expected to repay the entire outstanding principal sum on the maturity date. This is in contrast to amortizing loans where principal and interest are repaid in regular installments over the loan's term. For endfällig instruments, interest payments may still be made periodically during the life of the instrument, but the main repayment of the borrowed capital occurs only once at the very end.

This type of repayment structure is often found in certain types of mortgages, corporate bonds, or specialized financing arrangements. It can offer benefits to borrowers who may prefer to make smaller payments during the term and then a larger lump sum repayment, or it can be structured to align with expected future cash flows. For investors, endfällig instruments provide a clear expectation of when their principal investment will be returned. The specific terms and conditions of an endfällig obligation are always detailed in the loan agreement or bond indenture.