An installment loan is a kind of loan which allows individuals to borrow funds and back pay it in installments as time passes. The total amount borrowed is usually a large amount. Installment loans can be used to purchase items which customers cannot manage to pay for outright with money.
An installment loan will specify mortgage loan, the timing of necessary re re re payments in addition to any charges for missed re payments. Installment loans may permit early repayments, though there could be prepayment penalties in many cases.