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Instalment credit is a system under which a small payment is made at the time of possession of goods and the remaining amount is paid at the time.
Statement formation:
The delivery of assets is assured immediately on payment of initial instalment
Installment credit is a type of credit that has a fixed number of payments, in contrast, in contrast to revolving credit.
EG : land loan ,home construction loan , automobile loan , personal loan.
It is a credit for fixed sum to be repaid in installments.
Example: for hire purchase.
Installment credit is a type of credit that has a fixed number of payments. It is also called as Installment plan or Hire-purchase Plan..
Examples:
Land loan, Home construction loan, Automobile loan,etc…
Installment Loan
A loan that is repaid in a certain number of payments in the same amount. Interest is computed in advance and is rolled into the payments. For example, a mortgage amortized over 30 years is an installment loan because the payments are equal to each other and the loan is repaid after the 30 years have expired.
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