The correct answer is: C. Date of default.
The period of limitation is the time limit within which a legal action must be brought. In the case of term loans, the period of limitation is three years from the date of default. This means that the lender has three years from the date on which the borrower defaults on the loan to file a lawsuit to recover the debt.
The date of default is the date on which the borrower fails to make a payment on the loan. This can happen for a number of reasons, such as the borrower losing their job or having an unexpected expense. If the borrower does not make the payment within a grace period, the lender may declare the loan in default and begin the process of collecting the debt.
The other options are incorrect because they are not the date on which the borrower defaults on the loan. The date of documents is the date on which the loan agreement is signed. The date of sanction is the date on which the lender approves the loan. The due date of each installment is the date on which the borrower is required to make a payment on the loan.
It is important to note that the period of limitation may be different in different jurisdictions. In some cases, the period of limitation may be shorter or longer than three years. It is always advisable to consult with an attorney to determine the applicable period of limitation in your case.