What is a common feature of an installment loan?

An installment loan is characterized by a set number of payments made over a specified period. This means that borrowers repay the principal amount borrowed along with any interest in regular installments, usually on a monthly basis. The predictability of a fixed payment schedule allows borrowers to plan their finances more effectively, knowing exactly when and how much they need to pay.

In contrast, interest rates can vary widely and aren't always low, and although some loans might not require scheduled payments for a certain period (such as deferment periods), this is not a feature inherent to installment loans. Additionally, installment loans are available to both individuals and businesses, making the notion that they are only for businesses inaccurate. Thus, the defining characteristic remains the structured repayment plan with a predetermined number of payments.