The time between the first
payment on a
loan and its
maturity. For example, if one takes out a student loan with a payback period of 10 years, the full amount of the loan is due 10 years after the first payment, which occurs on an agreed-upon date. Over the course of the payback period, a
borrower must either pay back the loan with his/her own
funds or take out a different loan to pay off the first. It is also called the premium recovery period. See also:
Refinancing.