Instalment Loan

A loan repaid in regular, fixed instalments (usually monthly) over a set period rather than in one lump sum. Instalment loans are more structured than traditional payday loans and allow borrowers to spread repayment over weeks or months, reducing the payment shock of repaying everything at once. Most personal loans and short-term loans now operate on an instalment basis.

A £600 instalment loan repaid over 6 months means six equal monthly payments rather than one £600 repayment.

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