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instalment credita contractual means of purchasing a product over an extended period of time using a CREDIT facility provided either by a financial institution, such as a FINANCE HOUSE, or by the firm selling the product concerned. An initial down payment is usually required, followed by monthly fixed payments (including interest charges) over a specified repayment period (e.g. 12 or 24 months, etc.).
One popular form of instalment credit is a hire purchase agreement under which a purchaser takes immediate possession of a product but does not have legal title to that product until all the instalment payments have been made. See CREDIT CONTROLS, MONETARY POLICY, CONSUMER CREDIT ACT 1974.