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Banking

  Banking   |   Terms
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  • June 3, 2021
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Partially Amortizing Loan

An amortizing loan that repays some of the principal over its term, while the remaining balance (i.e., balloon payment) is paid off at the end of that term. This partial repayment of the principal helps lower the periodical payment (monthly, usually) the to an extent. The final payment (balloon) will include accrued interest (outstanding) in addition to the remaining part of the principal.

It is also known as a partly amortizing loan.


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