The Real Estate Encyclopedia & Blog

Standing Loan

by | Feb 10, 2026

In real estate finance, a standing loan is a loan in which the borrower is required to make payments of interest only during the term of the loan. The principal balance remains unchanged throughout the loan period.

At maturity, the entire principal amount is due and payable in a single lump sum. Standing loans are often used for short term financing or when the borrower expects to refinance or sell the property before the loan matures.