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Make sure to discuss this with your lender before making bi-weekly payments, because you might be penalized for any extra payments or paying off the loan balance early. An installment loan is a type of loan where the principal and interest can be repaid over time with multiple scheduled payments, rather than a single lump-sum payment at the end of the loan term. Many familiar types of loan products can be repaid with installments, including home and auto loans and most forms of business loans.

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