Category guide
Installment loans
An installment loan is repaid in scheduled payments over months rather than one lump sum — a middle ground between a payday loan and a bank personal loan, open to a wide range of credit.
What an installment loan covers
An installment loan is borrowed as a lump sum and repaid over several fixed payments — weekly, biweekly or monthly — across a set term. Amounts typically run from a few hundred to a few thousand dollars. Because approval leans on income and affordability, these loans serve many borrowers a traditional bank would decline.
How it differs from payday and personal loans
Unlike a payday loan repaid in one lump sum on your next paycheque, an installment loan spreads repayment over time, which makes each payment smaller. Rates sit above a bank personal loan but well below a payday loan's effective APR. Some lenders also offer a revolving line of credit you draw on as needed.
How to compare and borrow smart
Compare the APR and the total cost over the full term, not just the payment amount, and confirm there's no penalty for repaying early. Borrow the smallest amount that solves the problem. Use the directory to find installment lenders near you and compare by rating before applying.