balloon loan

A loan for which the final payment, larger than all of the previous, regularly scheduled payments, is due in a lump sum before the loan is fully amortized. The final payment is called a balloon payment. American Banker Glossary

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balloon loan balloon loan loan1

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   A loan that consists of regular monthly payments with one large (balloon) payment at maturity.

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balloon loan UK US noun [C]
FINANCE a loan which requires a large sum of money to be paid back at one time, usually at the end of the loan period

Financial and business terms. 2012.

Look at other dictionaries:

  • Balloon Loan — A type of loan which does not fully amortize over its term. Since it is not fully amortized, a balloon payment is required at the end of the term to repay the remaining principal balance of the loan. Balloon loans can be attractive to short term… …   Investment dictionary

  • balloon loan — Fin a loan repaid in regular installments with a single larger final payment …   The ultimate business dictionary

  • Balloon Loan — («Шаровой» кредит) кредит с единовременной выплатой значительной части основной суммы долга. Ипотечный кредит, предусматривющий погашение основного долга по кредиту в виде одноразового платежа, осуществляемого в заранее оговоренное время, или в… …   Ипотека. Словарь терминов

  • balloon — bal·loon adj: being or having a final installment that is much larger than preceding ones in an installment or term loan a balloon payment ◇ In contrast to an amortized loan, a balloon loan is generally repaid in periodic payments of interest and …   Law dictionary

  • Balloon payment — The phrase balloon payment or bullet payment refers to one of two ways for repaying a loan; the other type is called amortizing payment or Amortization (business) .With a balloon loan , a balloon payment is paid back when the loan comes to its… …   Wikipedia

  • loan — money lent at interest.A lender makes a loan with the idea that it will be paid back as agreed and that interest will be paid for the use of the money. Glossary of Business Terms Temporary borrowing of a sum of money. If you borrow $1 million you …   Financial and business terms

  • loan — Fin borrowing either by a business or a consumer where the amount borrowed is repaid according to an agreed schedule at an agreed interest rate, typically by regular installments over a set period of years. However, the principal may be repayable …   The ultimate business dictionary

  • balloon payment — /bə lu:n ˌpeɪmənt/ noun the last payment, usually much larger than the others, that is made when repaying a balloon loan …   Marketing dictionary in english

  • balloon payment — Fin the final larger payment on a balloon loan …   The ultimate business dictionary

  • balloon mortgage — see mortgage Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. balloon mortgage n …   Law dictionary

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