Personal loans go by several different names, including installment loans and signature loans. A personal loan can be a type of installment loan because it allows you to repay your debt through a series of monthly payments — or installments. A personal loan is also called a signature loan because it does not require a deposit or collateral for approval. Instead, you use your signature on a legal document to promise that you will repay the debt. Installment loans are popular financial products because they allow you to borrow a large sum of money and repay the debt in smaller increments that include interest charges. You can also typically repay these debts early with no prepayment penalty. Installment loans vary in several ways. Some lenders offer small, short-term loans of $100 or $200 that allow you to repay the debt over three months. Some lenders offer large personal loans or business loans that can climb into the millions of dollars and provide years to repay the total amount borrowed. While many lenders extend installment loans to applicants who have bad credit, you may find that your options become limited based on your credit history.