What’s An Installment Loan? Installment loans are available two primary groups: secured and unsecured

What’s An Installment Loan? Installment loans are available two primary groups: secured and unsecured

An installment loan is a method to borrow funds, typically for an individual large purchase such as an automobile, home or university training. The borrower receives a lump sum and repays the loan over a set term in monthly payments, or installments after getting approved by a lender.

Installment loans work differently than revolving credit, such as for example charge cards, which offer a line of credit to constantly borrow from instead of a solitary add up to repay. Revolving credit permits the income to again be borrowed once it is paid, whereas an installment loan account is closed as soon as it’s repaid. Read more