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

Example Sentences

The issuer that rejected their application cited a lack of an installment loan history.

From Los Angeles Times

However, a home-equity loan is an installment loan, meaning you receive all of your funds at once and repay it in equal monthly installments.

From Seattle Times

When Mr. Song disputed the charge on his credit report, he requested a copy of the installment loan agreement that Credova had approved, which included an itemized purchase list for 28 different gun parts ordered from Primary Arms.

From New York Times

But you’re right, your score will take a small hit because you’ll no longer have an installment loan open and will be left with just a credit card.

From Slate

Also, if you are looking to make a bigger purchase, like furniture, a computer, or another big-ticket item, you can consider financing it with an installment loan.

From Slate