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Finance & Banking vocabulary · Loans & Credit

Installment

Meaning in finance & banking, with examples

/ɪnˈstɔːlmənt/nounCore term

In finance & banking, installment means: One of a series of regular payments used to repay a loan or to pay for something bought on credit.

In Turkish: taksit

How it is used

Used for loans and card purchases. You pay in installments, miss an installment or pay the monthly installment. Banks also talk about installment loans and installment plans.

Example sentences

  1. The customer has missed two installments on his car loan.

  2. You can pay for the laptop in six interest-free monthly installments.

Common collocations

  • monthly installment
  • pay in installments
  • miss an installment
  • installment loan
  • installment plan
  • loanMoney that a bank or another lender gives to a person or company, which must be paid back over time, usually with interest.
  • principalThe original amount of money borrowed or invested, not including interest. Each loan payment usually covers some interest and some principal.
  • credit cardA plastic or digital card that lets you buy now and pay the bank later. You can spend up to a limit and pay interest if you do not repay the full amount on time.
  • buy now, pay laterA form of short-term credit that lets shoppers split a purchase into a few payments, often without interest, usually offered at online checkout.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Loans & Credit

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This page explains English vocabulary for learners. It is not financial advice.