A borrower who was making payments (principal plus interest) on a loan was required to make a balloon payment at the end of the loan. This was most likely a

In a fully amortized loan, the borrower makes equal payments over the loan term that fully cover both principal and interest, culminating in a zero balance at the end. This type of loan does not require a balloon payment, as the entire loan is paid off through regular installments.

A straight loan, also known as an interest-only loan, requires the borrower to pay only the interest during the life of the loan, with the principal paid in a lump sum at the end. This structure leads to a balloon payment at maturity, but it does not involve payments on the principal during the term, which is not the case described in the question.

A term loan typically involves a fixed repayment schedule over a specific period, but it can be either fully or partially amortized. Without specific details about the amortization, one cannot conclude that a balloon payment is necessary, as term loans can be structured to eliminate such payments depending on the amortization chosen.