Installment loan
from class: Math for Non-Math Majors Definition An installment loan is a type of loan that is repaid over time with a set number of scheduled payments. These payments typically include both principal and interest components.
congrats on reading the definition of installment loan . now let's actually learn it.
Predict what's on your test 5 Must Know Facts For Your Next Test Installment loans can be secured or unsecured, depending on whether collateral is required. Common examples include mortgages, auto loans, and personal loans. The repayment period for installment loans can range from a few months to several years. Interest rates on installment loans may be fixed or variable. Missing payments on an installment loan can negatively impact your credit score. Review Questions What distinguishes an installment loan from other types of loans? Can you name three common examples of installment loans? How do fixed and variable interest rates differ in the context of installment loans?
"Installment loan" also found in:
© 2024 Fiveable Inc. All rights reserved. AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.