An installment loan is cash you borrow and pay off with fixed payments — or installments — over a length of the time, or term. It varies from the line that is revolving of, that you have with a charge card, that lets you borrow money each time you make a purchase.

Forms of installment loans

Here’s a summary that is brief of forms of installment loans:

Signature loans: These loans are available by banking institutions, online loan providers and credit unions, and certainly will be applied for pretty much any function, frequently to combine financial obligation.

Unsecured loans are paid back in monthly payments. Rates of interest generally range between 6% to 36per cent, with terms from two to five years. Because rates, terms and loan features differ among lenders, it is better to compare unsecured loans from numerous loan providers. Continue reading →