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

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.

From Los Angeles Times

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

From Los Angeles Times

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.

From Seattle Times

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

From Seattle Times

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