What is an installment loan?

Loans like logbook loans and payday loans require you to pay one lump-sum amount, when the time of loan repayment approaches. This means that they pay you one payment and in return, eventually expect one as well. This is what differentiates these loans from installment loans.

With installment loans, there is no requirement for you to pay your loan in one go. Instead, these loans allow you take your time and pay off your loan in several scheduled parts. When you get such a loan, the terms of payment which accompany the loan mention exactly what is expected of you. Since the greater payment time is for your own ease, if you wish to repay the loan back earlier than what is required, there is no extra charges.

These loans are relatively more convenient for individuals who use their incomes or other periodic revenues to pay off the loan. If you intend on paying back your loan using your salary, an installment loan would allow you this flexibility by requiring several small payments.