A hot-air balloon carrying at least 16 people has caught fire and crashed.

Officials said appeared there were no survivors after the balloon came down at 8.40am local time near Lockhart in Texas, NBC reported.

The Federal Aviation Administration and National Transportation Safety Board are travelling to the scene to investigate.

Police were seen blocking a road leading to the crash site.

"The balloon was occupied and it does not appear at this time that there were any survivors of the crash," Caldwell County Sheriff Daniel Law said in a statement.

"Investigators are determining the number and the identities of victims at this time".