installment loans

An installment loan is a type of borrowing where you receive a set amount of money upfront and agree to repay it over time through fixed payments, usually monthly. These payments include both the original amount borrowed (principal) and interest, which is the cost of borrowing. Common examples include auto loans, mortgages, and personal loans. The structured schedule helps manage repayments and budget accordingly. Once all payments are made, the loan is fully paid off. Installment loans provide a predictable way to finance significant purchases or expenses, spreading the cost over a period to improve affordability.