Per the Pashut Neto calculator, a partial balloon loan (halva'at balon) of 100,000 ₪ at 6% annual interest for 24 months costs 500 ₪ per month in interest during 2026 plus a final payment of 100,000 ₪ — 112,000 ₪ in total, of which 12,000 ₪ is interest.
How is it calculated?
In a balloon loan (halva'at balon) the principal is repaid in one payment at the end of the term. In a partial balloon you pay only interest each month: loan amount × annual rate ÷ 12. In a full balloon nothing is paid during the term and the debt compounds monthly: final payment = amount × (1 + annual rate ÷ 12) to the power of the number of months. The structure is common in Israel for bridge loans, car financing and business credit.
Worked example: 100,000 ₪ at 6% annual interest for 24 months as a partial balloon — 100,000 × 6% ÷ 12 = 500 ₪ interest per month, with the 100,000 ₪ principal repaid at the end. Total cost: 112,000 ₪, of which 12,000 ₪ is interest. As a full balloon over 12 months at the same rate, the single final payment is about 106,170 ₪. Next to the result the calculator also shows the total for a regular amortizing loan (Spitzer — Israel's standard repayment schedule) with the same inputs.
Frequently asked questions
What is a balloon loan in Israel?
A loan where the entire principal is repaid in one payment at the end of the term instead of monthly installments. In a partial balloon you pay only monthly interest along the way; in a full balloon nothing is paid until the end. Example: 100,000 ₪ at 6% for 24 months as a partial balloon — 500 ₪ per month plus 100,000 ₪ at the end.
What is the difference between a partial and a full balloon loan?
In a partial balloon you pay the interest each month (500 ₪ per month on 100,000 ₪ at 6%), so the debt stays fixed and the final payment is the principal alone. In a full balloon there are no payments at all; interest compounds monthly, and on 100,000 ₪ for 12 months at 6% the single final payment is about 106,170 ₪.
Is a balloon loan more expensive than a Spitzer loan?
At the same rate, total interest on a balloon is higher because the full principal bears interest for the whole term, while in a Spitzer schedule the principal shrinks every month. In the example — 100,000 ₪ at 6% for 24 months — the partial balloon's interest is 12,000 ₪; the calculator displays the equivalent Spitzer total next to the result.
This calculation is a general estimate for illustration only. It does not constitute tax, pension, or investment advice, nor a substitute for personal advice from a licensed professional, and should not be relied on for decisions.
