The installment loan is a credit granted by banks or credit institutions. A sum of money is made available to the client.
It is a form of consumer credit, sometimes used to pool multiple credits.
The installment loan contract fixes the terms of repayment (amount of monthly payments, duration of credit …)
Generally, it is both easy to obtain, flexible to use, and expensive because interest rates and fees are high compared to market rates. As with any credit, it entails a risk of over- indebtedness
Notes and references
- What is the installment loan? [ archive ]