What is an instalment loan?
An instalment loan is similar to other personal loans in that it can be paid back over an agreed period of time. This is usually in the form of a set monthly payment, with interest calculated depending on the length of the repayment period and your own financial circumstances. As a borrower, you can choose to repay your loan over a period of between one and 30 years. However, the longer the loan term, the more it will cost overall.
Instalment loans give you flexibility to choose the amount you want to borrow and the length of your repayments. However, falling behind on your repayments can negatively affect your credit score, making it harder for you to be approved for a favourable loan in the future.