What is a large payment made by a borrower on a loan called?

A large payment made by a borrower on a loan is referred to as a "bullet." This term is used primarily in the context of debt instruments and loans where the borrower repays a significant portion or the entire principal amount at once at the end of a specified term. Bullet payments are often associated with loans that do not amortize over time, meaning that the borrower does not make regular principal payments throughout the loan's term but instead pays it all back in one lump sum.

This type of payment structure can be beneficial for borrowers who anticipate having a large amount of cash available at the end of the loan term, but it can also come with risks, as the borrower must ensure they will be able to afford the full repayment at that time. The other terms do not accurately describe a large payment on a loan; for instance, installment payments refer to smaller, regular payments made over time, while an advance typically refers to funds given before they are due, and minimum payments are the smallest amounts creditors allow borrowers to pay to stay in good standing, which are usually much smaller than bullet payments.