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Finance & Banking vocabulary · Loans & Credit

Balloon payment

Meaning in finance & banking, with examples

nounCommon term

In finance & banking, balloon payment means: A final loan payment substantially larger than the regular payments made before it.

In Turkish: balon ödeme

How it is used

Use for the large payment itself; the amount and timing come from the repayment schedule.

Example sentences

  1. The borrower had a balloon payment of 40,000 euros due in December.

    Earlier instalments leave a large amount for the end.

  2. The revised schedule replaced the balloon payment with smaller monthly amounts.

    Changing the schedule redistributes the final repayment burden.

Common collocations

  • final balloon payment
  • balloon payment schedule
  • installmentOne of a series of regular payments used to repay a loan or to pay for something bought on credit.
  • principalThe original amount of money borrowed or invested, not including interest. Each loan payment usually covers some interest and some principal.

More terms: Loans & Credit

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This page explains English vocabulary for learners. It is not financial advice.