installment loan

American  

[in-stawl-muhnt lohn] / ɪnˈstɔl mənt ˌloʊn /

noun

Finance.

1. a loan that allows someone to borrow a set amount of money and to repay it over a predetermined fixed period of time in regular installments, normally set up by the lender with equal installments that include both interest on the loan plus gradual repayment of the principal.

   They bought their new home and car using installment loans.

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Etymology

Origin of installment loan

First recorded in 1920–25

Example Sentences

The installment loan product allows customers to break up the cost of larger purchases into several fixed monthly payments, typically over a longer span than Klarna’s interest-free options.

From Barron's • Nov. 18, 2025

Consumer Financial Protection Bureau: What is a personal installment loan?

From Seattle Times • Jan. 10, 2023

Some lenders suspend payments temporarily, while others may require that the installment loan be paid as agreed, until the inquiry concludes.

From New York Times • Dec. 29, 2022

Should I apply for an installment loan to get those points back?

From Slate • Nov. 9, 2021

It’s called the online installment loan, a form of debt with much longer maturities but often the same sort of crippling, triple-digit interest rates.

From Los Angeles Times • Oct. 31, 2019