What "maturity date" means in finance

A maturity date is the date on which the principal amount of a loan or investment becomes due and payable. This date marks the end of the term of the loan or investment and the borrower or investor is required to repay the principal amount to the lender or redeem the investment. The maturity date is usually specified in the loan or investment agreement and can range from a few months to several years, depending on the type of loan or investment.