definition- a loan for which the amount of the payment, the interest rate, and the number of payments are fixed. They are repaid on a periodic basis and monthly payments are typical. For these loans you must sign a written contract. There are four types of installment loans and they are personal loans, vehicle loans, house equity loans, and education loans.
Michelle Chau, Maya Gulliford, Marisa Fears, and Jenna Ahr
Personal loans- does not require that a specific purpose be stated
Home equity loans- loans based on the difference between what the home is worth and how much the home owner owes
Education loans- loans that help many students achieve an education that they might not be able to afford on their own
Vehicle loans- loans used to purchase a car