installment credit
Học thuậtThân thiện
Definition
Noun: A type of credit or loan where the borrowed amount, plus interest, is repaid through a series of scheduled, equal payments over a fixed period.
Usage
This term is used specifically in the context of personal finance, banking, and consumer lending. It describes the structured nature of the debt repayment.
Examples
- The customer used installment credit to finance the purchase of a new refrigerator.
- Compared to revolving credit, installment credit typically has a fixed repayment schedule.
- Auto loans and personal loans are common forms of installment credit.
Advanced Usage
- Secured vs. Unsecured Installment Credit: Installment credit can be secured by collateral (like a car for an auto loan) or unsecured (like many personal loans).
- Amortization: The structure of installment credit payments is based on an amortization schedule, where early payments cover more interest, and later payments cover more principal.
Variants and Related Words
- Installment Loan: A nearly synonymous term, often used interchangeably with "installment credit."
- Installment Plan: A specific agreement outlining the terms of the installment credit.
- Installment (noun): Refers to one of the individual, periodic payments made to repay the credit (e.g., "The first installment is due in June.").
Synonyms
- Term Loan
- Closed-end Credit
Antonyms
- Revolving Credit (e.g., credit cards, lines of credit)
Noun
- a loan repaid with interest in equal periodic payments