installment loan

[ in-stawl-muhnt lohn ]

noun

Finance.

1. a loan that allows someone to borrow a set amount of money and to repay it over a predetermined fixed period of time in regular installments, normally set up by the lender with equal installments that include both interest on the loan plus gradual repayment of the principal:

   They bought their new home and car using installment loans.

Word History and Origins

Origin of installment loan¹

First recorded in 1920–25