Patrick took a loan of $50,000 with a repayment period of five years from a bank to start his own business. Every month he has to pay the bank $900 to repay the loan. What type of credit is demonstrated in this scenario?
Installment credit, is a type of loan in which you borrow a fixed amount of money and once you get it, you agree on repaying it in installments on monthly basis until the loan is fully repaid.
