Installment Loans
- Loans where the interval, amount and length of the repayment terms are determined in advance.
- The payment is a set amount, to be delivered to the creditor at regular intervals for a fixed number of intervals.
- Installment loans may be unsecured or secured
For example, a loan might require a repayment term of $250.00 by the first of every month for 36 consecutive months or a repayment term of $3,000.00 by the first day of the year for 3 consecutive years. In both these cases, the total repaid would be $9,000.00. The total of payments in an installment loan will equal the sum of the principle, the interest that accrues over the length of the loan and any fees or other charges that were added to create the amount borrowed. These would include mortgage loans, car loans, personal loans, student loans and business loans.
This is a complicated area of law and an attorney should be consulted on all matters relating to bankruptcy. The information on this website is provided with the understanding that the authors and publishers are not herein engaged in rendering bankruptcy, legal, insolvency, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional bankruptcy, insolvency, tax, legal or other competent advisors. While we have made every attempt to ensure that the information contained in this website has been obtained from reliable sources, Credit Advisors Foundation and Arbor Investment are not responsible for any errors or omissions, or for the results obtained from the use of this information.