installment loan

[ in-stawl-muhnt lohn ]

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.

Word History and Origins

Origin of installment loan¹

First recorded in 1920–25

Example Sentences

Buy now, pay later is a way of paying for purchases via installment loans that generally have no interest.

From TechCrunch

In the middle of the year, the company launched credit installment loans.

From TechCrunch

They are providing longer term installment loans that allow consumers the opportunity to build or repair their credit.

From Washington Post