Patrick took a loan of $50,000 with a repayment period of five years from a bank to start his own business. Every month he has t
o pay the bank $900 to repay the loan. What type of credit is demonstrated in this scenario? unsecured credit
secured credit
revolving credit
installment credit
An installment loan is a loan that is paid over time with a number of scheduled payments normally at least two payments are made towards the loan. The term of the loan may be little as two months or as long as 30 years.
Installment credit, is a type of loan in which you borrow a fixed amount of money and once you get it, you agree on repaying it in installments on monthly basis until the loan is fully repaid.
