An installment loan is a type of loan that is repaid over time with a set number of scheduled payments. These loans typically have a fixed interest rate and a specific repayment period, which can range from a few months to several years. Common examples of installment loans include personal loans, auto loans, and mortgages. Borrowers receive a lump sum of money upfront and then pay it back in regular installments, usually monthly. This structure helps individuals manage their finances by providing predictable payment amounts. However, it's important to consider the total cost of the loan, including interest and any fees, before borrowing.