{"id":11284,"date":"2022-02-04T15:58:22","date_gmt":"2022-02-04T15:58:22","guid":{"rendered":"https:\/\/www.africa-press.net\/namibia\/all-news\/local-banks-clarify-balloon-payments"},"modified":"2022-02-04T16:16:28","modified_gmt":"2022-02-04T16:16:28","slug":"local-banks-clarify-balloon-payments","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/namibia\/all-news\/local-banks-clarify-balloon-payments","title":{"rendered":"Local banks clarify balloon payments"},"content":{"rendered":"

Africa-Press – Namibia. <\/strong><\/span>Edgar Brandt<\/b><\/p>\n

Local commercial banks have been offering prospective clients the option to use a balloon payment option as part of their instalment sales possibilities when purchasing a vehicle. A balloon payment enables bank clients to make lower monthly payments until the end of the loan term, at which time the final payment of a lump sum will be significantly larger than previous monthly payments.<\/p>\n

According to Sandra Blaauw, Bank Windhoek\u2019s Vehicle and Asset Finance Branch Manager, a key benefit for the customer when opting for a balloon payment option is a reduced monthly instalment when purchasing a vehicle. However, Blaauw cautioned of a risk involved in that the value of the vehicle reduces monthly, depending on its make and model.<\/p>\n

\u201cA balloon payment option is often the way that the financing of vehicles is structured. It is normally a percentage of the capital amount borrowed to a customer and is payable as the last instalment. Typically, the balloon payment is 30% of the value of the vehicle and the 70% is what the customer pays in instalments over the agreed financing period with interest calculated on the capital amount borrowed from the bank. The final instalment on the vehicle is the balloon payment before the customer takes full ownership of the vehicle,\u201d Blaauw explained.<\/p>\n

She added that customers are often not able to meet the obligation of the final balloon payment, especially in these economic times but emphasised that no customer is forced to re-finance the balloon option to pay off debt either.<\/p>\n

Said Blaauw: \u201cBanks do provide options to assist customers with ways to repay the balloon payment. Repayment can be structured as refinancing the debt to become the owner of the vehicle and typically comprises a minimum of 10% deposit of the value of the balloon payment (purchase price), and an instalment repayment period over a maximum term of 24 months\u201d. She further clarified that terms and conditions do apply but said normally customers who change vehicles often for work purposes, for instance, 36 months term, would opt to use the balloon payment<\/p>\n

option.<\/p>\n

Meanwhile, First National Bank noted that with a balloon payment, the client benefits from lower monthly instalments as a certain percentage of the capital amount, being the balloon payment, is scheduled for the end of the loan term.<\/p>\n

\u201cThe balloon enables the client to finance a more expensive vehicle which would have been out of reach without a balloon payment as the monthly instalments would have been significantly higher,\u201d explained FNB spokesperson, Elzita Beukes. She continued that clients can refinance their balloon payment with WesBank (a 10% deposit needs to be provided), can sell or trade the vehicle, or settle the balloon payment out of their own funds.<\/p>\n

\u201cCustomers have an option to pay additional funds over the loan term towards the balloon payment, thereby reducing the amount that needs to be settled on the last day of the loan term,\u201d said Beukes, adding that the balloon payment option is available to any customer in good financial standing.<\/p>\n

For More News And Analysis About Namibia<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Namibia. Edgar Brandt Local commercial banks have been offering prospective clients the option to use a balloon payment option as part of their instalment sales possibilities when purchasing a vehicle. A balloon payment enables bank clients to make lower monthly payments until the end of the loan term, at which time the final […]<\/p>\n","protected":false},"author":84,"featured_media":11283,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8,16],"tags":[234,236,233],"class_list":["post-11284","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","category-twitter","tag-africa-press","tag-africa-press-namibia","tag-namibia"],"yoast_head":"\nLocal banks clarify balloon payments - Namibia<\/title>\n<meta name=\"description\" content=\"Edgar Brandt Local commercial banks have been offering prospective clients the option to use a balloon payment o ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/namibia\/all-news\/local-banks-clarify-balloon-payments\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Local banks clarify balloon payments\" \/>\n<meta property=\"og:description\" content=\"Edgar Brandt Local commercial banks have been offering prospective clients the option to use a balloon payment o ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/namibia\/all-news\/local-banks-clarify-balloon-payments\" \/>\n<meta property=\"og:site_name\" content=\"Namibia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2022-02-04T15:58:22+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-02-04T16:16:28+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2022\/02\/img-61fd514182582.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"720\" \/>\n\t<meta property=\"og:image:height\" content=\"381\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/local-banks-clarify-balloon-payments#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/local-banks-clarify-balloon-payments\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Local banks clarify balloon payments\",\"datePublished\":\"2022-02-04T15:58:22+00:00\",\"dateModified\":\"2022-02-04T16:16:28+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/local-banks-clarify-balloon-payments\"},\"wordCount\":517,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/local-banks-clarify-balloon-payments#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2022\/02\/img-61fd514182582.jpg\",\"keywords\":[\"africa press\",\"Africa Press-Namibia\",\"namibia\"],\"articleSection\":[\"all news\",\"economy\",\"homepage-english\",\"twitter\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/namibia\/all-news\/local-banks-clarify-balloon-payments#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/local-banks-clarify-balloon-payments\",\"url\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/local-banks-clarify-balloon-payments\",\"name\":\"Local banks clarify balloon payments - 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