There are a few key differences between installment loans and payday loans. With an installment loan, you borrow a set amount of money and repay it over time, usually with monthly payments. With a payday loan, you borrow a smaller amount of money and pay it back in one lump sum, usually on your next payday. Another key difference is that installment loans typically have lower interest rates than payday loans. This is because payday loans are designed to be repaid quickly, so they tend to have higher interest rates. Finally, installment loans give you more time to repay the loan, while payday loans need to be repaid sooner. This can be helpful if you need more time to pay off the loan or if you're not able to repay.