Installment loan

Installment loan

An installment loan is a loan that is repaid over time with a set number of regularly scheduled payments. The term of loan may be as little as a few months and as long as 30 years. A mortgage, for example may be considered a type of installment loan. In many cases you will have even payments with the final payment different from the rest. The reason for this is to capture any remaining amount due to rounding issues. You may also have an uneven first payment, this is due to the timing of origination of the loan. For example, if the company you borrow from schedules repayments on the 1st and your loan is originated on the 25th, your first payment may be for only the remaining 5 or 6 days of the month. All other payment will be for even dollar amounts.

Installment loans may affect your credit score.


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  • installment loan — noun A loan that is repaid over time with a set number of regularly scheduled payments. A mortgage, for example may be considered a type of installment loan …   Wiktionary

  • installment loan — noun a loan repaid with interest in equal periodic payments • Syn: ↑installment credit • Hypernyms: ↑consumer credit, ↑loan …   Useful english dictionary

  • loan — A lending. Delivery by one party to and receipt by another party of sum of money upon agreement, express or implied, to repay it with or without interest. Boerner v. Colwell Co., 21 Cal.Sd 37, 145 Cal.Rptr. 380, 384, 577 P.2d 200. Anything… …   Black's law dictionary

  • loan — A lending. Delivery by one party to and receipt by another party of sum of money upon agreement, express or implied, to repay it with or without interest. Boerner v. Colwell Co., 21 Cal.Sd 37, 145 Cal.Rptr. 380, 384, 577 P.2d 200. Anything… …   Black's law dictionary

  • installment sale — Commercial arrangement by which buyer makes initial down payment and signs a contract for payment of the balance in installments over a period of time. In accounting for such sales, the seller may either account for the profits on basis of each… …   Black's law dictionary

  • installment sale — Commercial arrangement by which buyer makes initial down payment and signs a contract for payment of the balance in installments over a period of time. In accounting for such sales, the seller may either account for the profits on basis of each… …   Black's law dictionary

  • installment credit — noun a loan repaid with interest in equal periodic payments • Syn: ↑installment loan • Hypernyms: ↑consumer credit, ↑loan …   Useful english dictionary

  • installment plan — Commercial sales arrangement by which goods are sold and buyer pays for them in periodic payments. See also installment contract installment credit installment loan installment sale …   Black's law dictionary

  • installment plan — Commercial sales arrangement by which goods are sold and buyer pays for them in periodic payments. See also installment contract installment credit installment loan installment sale …   Black's law dictionary

  • installment — Partial payment of a debt or collection of a receivable. Different portions of the same debt payable at different successive periods as agreed. Partial payments on account of a debt due. Kenney v. Los Feliz Inv. Co., 121 Cal.App. 378, 9 P.2d 225 …   Black's law dictionary

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