What is the term used for the length of time before a loan must be repaid?

The correct term for the length of time before a loan must be repaid is "term." This encompasses the entire duration over which the borrower is obligated to make payments, whether they are interest-only or include principal repayment as well. The term can vary significantly based on the type of loan, such as a short-term loan lasting a few months versus a long-term mortgage that spans several years.

Understanding the term is crucial for both lenders and borrowers as it impacts aspects such as the structure of payment schedules, interest rates, and overall financial planning. A well-defined loan term allows borrowers to gauge their repayment capacity and helps lenders assess the risk associated with the loan.

The other terms listed do not pertain to the duration of loan repayment. "Rate" generally refers to the interest rate applied to the loan amount. "Premium" typically relates to insurance or additional costs associated with certain financial products, while "deductible" is a term used primarily in tax contexts, referring to amounts that can be deducted from taxable income. Thus, recognizing "term" as the correct answer solidifies one's understanding of loan structure in the domain of investment practice.