A loan that a person promises to pay back in fixed, scheduled payments over a specified period of time. Interest is paid in addition to the original amount borrowed. Examples of installment loans include student loans, personal, and auto loans.
An amount of money that is borrowed to buy things like a house, car, or appliance. Loans are typically repaid in equal monthly amounts, such as a 36-month loan to buy a car. The longer the repayment period, the lower the monthly payment but the greater the total interest cost.
A loan for which periodic (monthly, biweekly, etc.) payments are made. The loan balance may not be increased during the life of the loan and the payments remain the same amount for the entire term of the loan. Credit card accounts are not installment loans (see Revolving Credit).
A loan that you promise to pay back by paying the same amount of money on a regular basis, usually monthly, for a specific amount of time. For example, you might pay back an installment loan by paying $300 a month for 5 years. Student loans, home equity loans and auto loans are usually installment loans.