Installment Credit is a type of loan where the borrower repays the borrowed amount in fixed periodic payments (EMIs) over a specified period.
Installment Credit allows borrowers to repay loans in regular installments, usually monthly. Each payment includes both principal and interest, making repayment predictable and structured.
It is commonly used for home loans, car loans, personal loans, and education loans.
Lending practices in India are governed by the Reserve Bank of India.
"A person takes a ₹5 lakh car loan and repays it in monthly EMIs over 5 years—this is installment credit."