Instalment Loan
An instalment loan is a loan you repay in scheduled payments over a set term. You borrow a fixed amount, then pay it back on a calendar—weekly, biweekly, or monthly—until the balance is gone. Car loans and bank personal loans work this way.
That is different from revolving credit, such as a credit card, where you can borrow again as you repay. Some instalment loans are high-cost: they often come from non-bank lenders, carry a much higher APR, and are used for fast cash.
In Canada, most consumer loans cannot legally exceed 35% APR.
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