What type of loan would involve a lump sum equal to the outstanding balance?

A single payment loan is structured so that the borrower receives a lump sum upfront, and the entire amount, including any interest, is due in a single payment at a specified maturity date. This characteristic aligns perfectly with the idea of repaying a loan with a lump sum equal to the outstanding balance.

In contrast, open-end loans allow for a revolving line of credit where borrowers can draw on the loan repeatedly up to a limit, leading to varying outstanding balances. Variable loans, on the other hand, typically have adjustable interest rates and may involve multiple payments over time rather than a single lump sum. Multiple payment loans often include structured repayments over several periods, which does not fit the lump sum payback concept associated with single payment loans.