Installment

An installment is a portion of a sum of money owed, paid at regular intervals over a period of time. This payment arrangement allows individuals or businesses to acquire goods or services without paying the full price upfront, spreading the cost to make it more manageable. Installments are commonly used for purchasing houses (mortgages), cars (auto loans), appliances, furniture, and educational fees. They can also refer to periodic sections or parts of a serialized publication or broadcast, such as a book series, film, or software release. The installment plan terms, including the interest rate, payment amount, and repayment period, are outlined in a contract.

Installment meaning with examples

• She chose to purchase the new sofa on an installment plan, allowing her to spread the payments over 12 months. This made the expensive purchase more affordable, fitting it comfortably into her monthly budget. The agreement stipulated monthly payments with a manageable interest rate, easing the financial strain.
• The car loan was structured with monthly installments, allowing the buyer to own the vehicle without immediately paying its full price. The fixed monthly payments made budgeting easier and provided a clear schedule of payments. Each installment covered principal and interest over a predetermined repayment schedule.
• The university offered students the option of paying their tuition fees in installments. This provided financial flexibility and helped manage the significant educational costs. The installment schedule helped them allocate funds and avoid large, immediate financial burdens, promoting educational accessibility.
• The software company released a new update in a series of regular installments. This allowed developers to introduce new features gradually, gathering user feedback for continuous improvement. Customers enjoyed the frequent updates and planned feature expansions.
• The historical novel was published in monthly installments, creating excitement among readers eager to follow the story. This serialization built anticipation and encouraged subscription sales. Each installment contained a chapter or section of the overall narrative.