installment loan
Periodic payment debt
An installment loan is a type of credit where the borrower receives a lump sum and repays it through fixed, regular payments over a set period.
Each payment typically covers both principal and interest.
Common examples include mortgages, auto loans, and student loans.
Unlike revolving credit such as credit cards, installment loans have a definite end date when the debt will be fully paid off.
She took out an installment loan to finance her new car.
Numerical measure of borrower reliability
- credit reportRecord of borrowing behavior
- debt-to-incomeObligations relative to earnings
- underwritingRisk evaluation and acceptance
- approvalFavorable opinion given
qualification · risk assessment · creditworthiness · application · income verification · employment history · co-signer · guarantor
Gradual debt reduction schedule
- principalChief school administrator
- interestAttention, stake, or fee
- fixed rateUnchanging interest percentage
- variable rateAmount that fluctuates
APR · finance charge · secured · unsecured · collateral · balloon payment · payment schedule · maturity date
Secured home loan
- hire purchaseBuying through periodic payments
- chattel mortgageLoan secured by possessions
Recurring scheduled remittance
- due dateWhen payment is required
- payment planArranged installment schedule
- payoffCulminating benefit received
- balanceSteadiness or amount owed
grace period · late fee · default · early payoff · billing statement · remittance · overpayment · underpayment
credit score
Numerical measure of borrower reliability
- credit reportRecord of borrowing behavior
- debt-to-incomeObligations relative to earnings
- underwritingRisk evaluation and acceptance
approval · qualification · risk assessment · creditworthiness · application · income verification · employment history · co-signer · guarantor · subprime
amortization
Gradual debt reduction schedule
- principalChief school administrator
- interestAttention, stake, or fee
- fixed rateUnchanging interest percentage
variable rate · APR · finance charge · secured · unsecured · collateral · balloon payment · payment schedule · maturity date · prepayment penalty
mortgage
Secured home loan
- hire purchaseBuying through periodic payments
- chattel mortgageLoan secured by possessions
monthly payment
Recurring scheduled remittance
- due dateWhen payment is required
- payment planArranged installment schedule
- payoffCulminating benefit received
balance · grace period · late fee · default · early payoff · billing statement · remittance · overpayment · underpayment · deferment
- debtscredit card debt, medical debt, student debt, mortgage, debt
- loanslend, borrow, borrower, lender, microloan
- bills & debtsmortgage, credit card debt, medical debt, utility bills, rent arrears
- business debtcredit line, line of credit, accounts payable, balloon payment, corporate bond
- credit termscredit limits, monthly payment, credit cards, interest rate, installments
- debt typescredit card debt, revolving credit, line of credit, credit line, promissory note
installment loanrevolving credit
Reusable loan with limit
credit card · line of credit · HELOC · revolving loan · demand loan
installment loansavings
Accumulated money kept
savings account · investment · assets · nest egg · cash reserves
installment loancash payment
Transaction using physical currency
lump sum payment · cash on the barrelhead · single payment · balloon payment · full payment
install, installs, installed, installing, installation, installations, installer, installers, reinstall