Installment Loan
A loan repaid through a fixed schedule of scheduled payments until the balance reaches zero.
Auto loans, mortgages, and the shop's equipment loan are installment loans: a set amount, a set term, an end date.
Often Confused With
- Revolving Credit
- An installment loan is borrowed once and paid down to zero; revolving credit can be reborrowed as it is repaid.
Taught In
See Also
3.2.A.2 · 3.5.B.1.i