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Installment loans allow individuals to borrow a predetermined amount of money, disbursed in a lump sum, that can be repaid over time. Typically, these loans come with a fixed interest rate — although some lenders charge variable rates — and require regular monthly payments.
A portion of each monthly payment is applied to the principal amount borrowed, and a portion is applied to the interest on the loan. You’ll continue to make the monthly loan payments over the loan term, and the lender will close the account once the loan is paid in full, including the principal and the interest.

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