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Balloon Loan

A loan or bond in which the borrower makes only interest payments for a set period of time. At the end of the term, the borrower repays the entire principal at once. A balloon loan may be useful when the borrower expects interest rates to be low at the end of the term, allowing him/her simply to refinance the loan. However, there is a high risk of default because not all borrowers actually have the cash to repay an entire loan in one payment. See also: Balloon Mortgage.


The loan balance remaining at the time the loan contract calls for full repayment.

References in periodicals archive ?
To confirm results of ballooning, RV angiogram was done in the same left lateral position and flow pattern across the pulmonary valve estimated (fig-2).
One of the most attractive features of ballooning is that it allows payloads to be recovered, refurbished, improved, and reflown.
Although hot air balloons have been around for centuries - the first manned flight took place in France in 1783, according to ballooning Web site www.
The morning has to be windless--the riskiest part of any ballooning venture is takeoff.