A bullet loan can be a mortgage, bond, note or any other type of credit.
This arrangement is convenient to individuals who are expecting a huge cash flow in the form of bonuses or fixed returns in some months.
Short-term bonds or notes that pay no interest are also a form of bullet loan.
In China, certain types of bullet loans have been prohibited by the China Banking Regulatory Commission due to concerns regarding Chinese banks' risk management capabilities.
[4] This extends only to lending to retail, commercial, and government clients, while not including the issuance of bonds or notes.