Loan installment is a loan that is paid over time with a certain number of scheduled payments; usually at least two payments made to the loan. The loan period may be only a few months and for 30 years. KPR, for example, is a type of installment loan.
The term is strongly associated with traditional consumer lending, originating and servicing locally, and repaid over time by regular payments of principal and interest. This "installment loan" is generally considered a safe and affordable alternative to payroll and loan payments, and to end credit such as credit cards.
In 2007 the US Department of Defense excluded installment loans from laws designed to ban predatory lending to service personnel and their families, recognizing in its report the need to protect access to favorable mortgage loans while covering up unsecured credit forms.
Video Installment loan
History
The installment loan was first used by Singer companies to finance the purchase of their sewing machines in 1850. After Singer, other companies began to use installment loans. In 1899 in Boston, more than half of furniture traders used this type of loan. Around 1990, installment loans were usually used to finance sewing machines, radios, electric refrigerators, phonograph records, washing machines, vacuum cleaners, jewelry and clothing. In 1924, 75% of cars were purchased with installment loans.
Maps Installment loan
References
Source of the article : Wikipedia
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