What exactly is an installment loan?

What exactly is an installment loan?

An installment loan is just a product that is financial allows people to borrow a big amount of cash that they can then repay as time passes. The installment loan usually has an interest that is fixed and needs regular monthly obligations.

Deeper meaning

Consumers prefer installment loans for purchasing items which they can’t purchase in cash. Installment loans have clear terms organized. Once the debtor signs the contract for the loan, the agreement plainly specifies the mortgage term, rate of interest and feasible charges for missed or belated repayments.

Some do have prepayment penalties although installment loans permit early repayment.

Collateral secures some kinds of installment loans, such as for instance mortgages and automotive loans. Meer lezen