Balloon Scheme Loan

Balloon scheme loan is a car loan option that allows you to enjoy a lower monthly payment throughout the loan term. This makes it easier to afford a higher-end car or simply free up more cash flow for other expenses.

Here’s how it works:

• You borrow the full value of the car, minus the estimated Parachute Value (PARF) – a residual value calculated at the end of the loan term.
• You make lower monthly payments throughout the loan period (typically shorter than a traditional car loan).
• At the end of the loan term, you have a large final payment equal to the car’s PARF. This can be paid in a lump sum, refinanced, or the car can be traded-in depending on the lender’s options.