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

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.

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Answer: A car loan might boost your scores, especially if you don’t already have an installment loan such as a mortgage on your credit reports.

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The issuer that rejected their application cited a lack of an installment loan history.

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However, a home-equity loan is an installment loan, meaning you receive all of your funds at once and repay it in equal monthly installments.

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

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