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Principal is money lent to a borrower or put into an investment. It can also refer to a private company's owner or the chief participant in a deal.When investing an amount of money in stocks or a business, the sum first provided is known as the principal. Define COMPLETE IF PRINCIPAL IS. A: : ss. Total Outstanding Principal means the aggregate amount of the Outstanding Loans of all Lenders plus the aggregate LC Exposure. Sample 1Sample 2Sample 3. Principal means of primary importance. In finance, it refers to the amount borrowed or the balance owed on a loan that has not been paid off. The principal amount is the money borrowed from the bank (or, in some cases, the money in a savings or checking account). Find out how Principal can support you and your pension clients.