Installment loans are a very traditional type of loan. They are often what people think of when they think
of a loan — that is, you receive a lump sum up front and repay it with (generally) fixed installments over
a predetermined period of time (or “term”).
The main difference between an installment loan and a short-term or payday loan is that an installment
loan is typically for a larger amount of money and you typically repay it over a longer amount of time
than a short-term loan.