Installment Loan

Categories: Bonds, Banking

A type of financing where you pay the same amount each month for a specific amount of time. For example, a personal loan or car loan is usually an installment loan (or installment credit, as it's sometimes called). You might pay $200 (or whatever the amount is) on that loan every month for 36 months (or however long you have to repay the loan) and then you have paid it off.

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