# balloon payment

> English word · Noun

## Definitions
1. An unusually large payment due at the end of the term of a loan agreement.

## Etymology
So called because the debt becomes inflated like a balloon as a result of the compound interest accumulating on the large sum.

## Source
Compiled from Wiktionary via kaikki.org (CC BY-SA). Data vintage: 2026-05-06.
Canonical page: https://plainspell.com/en/word/balloon-payment