The total period of time over which a loan will be repaid.
The amortization period of a loan should not be confused with the loan term, which is the amount of time the money is actually loaned for.
For example, a mortgage loan might have an amortization of 25 years, but a loan term of only 3 years.
When applying for a mortgage loan, the amortization period is used to calculate the monthly payments. (Longer amortization periods result in smaller monthly payments.)
A longer amortization period can also help to qualify a borrower for a higher loan amount.