instalment credit


Also found in: Dictionary.

instalment credit

a 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.

References in periodicals archive ?
In the case of Namibia, the instalment credit category has increased rapidly over the years, financing mostly the import of luxury vehicles and consequently exerting pressure on the international reserves.
Another pounds 152m was borrowed via buy now, pay later forms of instalment credit.
Another pounds 152million was borrowed via buy-now-paylater instalment credit.
Borrowing through store cards were down 33% year on year to pounds 145 million and store instalment credit dropped by 27% to pounds 152 million.
Department and appliance stores do extend some instalment credit to purchasers, but the system of cash lending as we know it in America is virtually unknown there.
Store instalment credit has seen the strongest relative performance during the recession
The apex bank said that rapid growth of vehicle imports, partly financed by instalment credit, remains a matter of concern in Namibia.
In particular, instalment credit card loans soared by 140 per cent during the same period, contributing to a steep increase in the ratio of household liabilities to disposable income to 51 per cent as of year-end 2012 from 44 per cent in 2010 and 37 per cent in 2008.
Non-performing loans are led by mortgages, followed by overdrafts, other loans and advances and instalment credit in the fourth place.
Borrowing for high street spending saw the biggest dive, store instalment credit down 23 per cent to pounds 155million and store-card lending 22 per cent lower at pounds 160million.
Store instalment credit, which had been more resilient than other forms of lending during the recession, also suffered a steep drop, declining by 32 per cent to pounds 160 million.
Borrowing through secondcharge mortgages was also down 20% at pounds 20m, while store instalment credit was 19% lower, despite previously surviving the downturn better than some sectors.