ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An auto loan is an installment loan that is borrowed in order to purchase a motor vehicle. Such loans usually come with a loan duration of 12 months to 60 months, or more, depending on the lender and the loan amount.

Detailed explanation-2: -The most common type of installment loan is a personal loan, but other examples of installment loans include no-credit-check loans, mortgages and auto loans.

Detailed explanation-3: -Installment loans-also known as installment credit-are closed-ended credit accounts that you pay back over a set period of time. They may or may not include interest. Read on to learn more about different types of installment loans and how they work.

Detailed explanation-4: -Examples of installment loans include mortgages, auto loans, student loans, and personal loans.

Detailed explanation-5: -An installment loan is a loan that provides the borrower with a lump sum of money up front, which is to be repaid in installments over the course of an established term. That is why an installment loan may also be called a term loan.