Definition of balloon payment in English:

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balloon payment

noun

A repayment of the outstanding principal sum made at the end of a loan period, interest only having been paid hitherto.
Example sentences
  • The required payments are the monthly instalments of principal and interest under the loan, until the balloon payment comes due in March.
  • Should the customer decide not to pay the balloon payment at the end of the interest-free period then it is time to renegotiate further monthly payments.
  • Ballentine explains how a balloon payment works: ‘After a given time period at a particular rate, the entire remaining amount becomes due on the loan.’

For editors and proofreaders

Syllabification: bal·loon pay·ment

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