"Balloon loan" calculates the monthly payment in the long term, but determines the loan interest rate in the short term. The customer repays the principal and interest in advance, and the remaining principal is repaid in one lump sum when it expires. Simply put, it is long-term loan and short supply. Due to the small repayment amount in each installment in the early stage and the large repayment amount on the maturity date of the loan, "small before and big after" looks like a balloon, hence the name "balloon loan". Advantages: "Balloon loan" has the advantages of "low interest rate and low monthly payment" and realizes the functions of low interest rate and small repayment amount per period. Disadvantages: the final repayment amount is large, and the pressure on customers to repay loans at maturity increases.

Suitable for people: suitable for customers with rising income and strong repayment ability in the future.