Which term is most similar to an acceleration clause?

An acceleration clause is a provision in a loan agreement that allows the lender to require the borrower to repay the entire loan amount, plus any accrued interest, under certain conditions, such as a default on payments. This clause essentially accelerates the repayment schedule, making the full balance due immediately.

The term "balloon payment" is most similar to an acceleration clause because it refers to a large final payment due at the end of a loan term, which is typically much larger than previous payments. In scenarios where an acceleration clause is invoked, it can result in a similar effect where the borrower must pay off the entire loan amount quickly, akin to a balloon payment.

On the other hand, fixed payment, deferred payment, and partial payment options do not inherently involve the requirement to pay off a loan balance in full under specified conditions. Fixed payments occur at set intervals, deferred payments postpone payment obligations, and partial payments allow for a portion of the debt to be paid but do not trigger an acceleration of the entire obligation. Therefore, the comparison to a balloon payment makes it clear how closely these concepts relate.