What term describes a loan that has been completely paid off?

The term that describes a loan that has been completely paid off is "fully amortized." A fully amortized loan is structured so that the borrower makes regular payments of principal and interest over a set period, and at the end of the term, the loan is completely paid off. This means that by the end of the loan term, the borrower has fulfilled all obligations and will not owe any remaining balance.

In contrast, a partially paid loan indicates that some payments have been made, but the loan balance still exists. A defaulted loan refers to a situation where the borrower has failed to meet the terms of the loan, typically by not making required payments, leading to potential legal action or foreclosure. A terminated loan generally implies that the loan agreement has been ended but does not specify that the loan has been completely paid off; it may have been terminated for various reasons, including default or payoff. Hence, "fully amortized" accurately defines a loan that has been settled in full.