Is there a type of loan where there are no monthly payments and only one lump sum due up the date that the loan matures? Thanks!
2007-08-22 15:23:19 · 19 answers · asked by tmac5445 1 in Business & Finance ➔ Personal Finance
Yep, sounds like you need the 100% down no monthly payment plan.
2007-08-22 15:27:41 · answer #1 · answered by The Wižard 5 · 1⤊ 0⤋
Most definitely, but you are probably not going to get one. Often times, banks make a "single payment" loan to businesses like farmers and ranchers. A farmer needs a loan to purchase seed and then repays the loan when the crop has been harvested and sold. The same applies to ranchers purchasing cattle. Other businesses also work out different types of loans. Interest does accrue on the loan balance until the loan is paid off.
John Doe walking in off of the street ain't getting a single pay loan.
2007-08-22 18:03:59 · answer #2 · answered by 5_for_fighting 4 · 0⤊ 0⤋
No.
What you can do is get an interest only loan with a balloon payment at the end. You pay a low monthly payment then at the end of the term you pay off the remaining balance.
Please keep in mind, lenders aren't very open to risk right now based on what is going on with the sub prime lenders and the problems Countrywide is having. You may have a hard time finding a bank that will do this loan for you. Our investors and stockholders aren't to keen on taking on unnecessary risk right now.
2007-08-22 15:30:50 · answer #3 · answered by Sara 6 · 1⤊ 1⤋
YES -- you see this a lot with furniture stores, and Auto dealers who advertise "No payments for a Year"
What they don't tell you is that interest starts day 1, and after a year you will be making payments not only on the original sum, but also accumulated interest.
2007-08-22 15:30:19 · answer #4 · answered by jimdotedu 5 · 0⤊ 0⤋
Yes, it's called Amex and it's always due at the end of 30 days.
Otherwise, the only other form of money given that has no monthly payments is called a grant. Except, with a grant, you don't have to pay any of it back.
2007-08-22 15:29:25 · answer #5 · answered by commorancy 5 · 0⤊ 1⤋
There are. Corporations that wish to raise capital but not dilute ownership borrow from investors, and issue what is essentially an IOU. It's called a zero coupon bond.
As an individual, you can do the same thing by drafting or accepting a promissory note.
2007-08-22 15:42:07 · answer #6 · answered by Anonymous · 1⤊ 0⤋
To get such a loan you would have to convince the loan officer that you are about to come into a large sum of money. Such as a farmer coming into money when the crops are harvested.
2007-08-22 15:29:26 · answer #7 · answered by Zack 4 · 2⤊ 0⤋
A rich person with collateral might be able to get this time of loan.
2007-08-22 15:59:45 · answer #8 · answered by Wayne Z 7 · 0⤊ 0⤋
sure most banks will offer these types of loan but in most cases they will have to be a secure loan!!!
2007-08-26 04:22:01 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Loan Sharks operate that way, but I do not know of anyone else.
2007-08-22 15:27:35 · answer #10 · answered by bgee2001ca 7 · 0⤊ 0⤋