What does maturity date on a loan mean?

Also asked, what happens if loan is not paid by maturity date?

If you owe a balance on the maturity date, you must pay it off. If the loan is past-due and you owe a significant balance, you may request to pay it off by making several payments equal to your monthly payment amount. As long as you owe a balance on your loan, the bank will not release the lien on the vehicle.

Furthermore, what happens after maturity date? A maturity date is like the due date on your rent or car payment because the bond issuer must pay off the bond on that date. Typically, bonds stop earning interest after they mature. In either case, the issuing corporation or government instructs its bond agent to transfer the money to pay off bonds to the bond owners.

Subsequently, question is, what's a maturity date on a loan?

In finance, maturity or maturity date refers to the final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid. The term fixed maturity is applicable to any form of financial instrument under which the loan is due to be repaid on a fixed date.

What does it mean by maturity date?

The maturity date is the date on which the principal amount of a note, draft, acceptance bond or other debt instrument becomes due. The maturity date also refers to the termination date (due date) on which an installment loan must be paid back in full.