Instalment

Definition

An instalment is a single repayment in a series that gradually clears a loan. Each one typically combines interest on the outstanding balance with a portion of the principal, so the debt reduces step by step through amortisation.

In plain terms

It is one rung on the ladder down to a cleared loan. Instalments are usually equal and monthly, which makes budgeting predictable, though the split inside each payment shifts over time — more interest early, more principal later. See how the schedule builds in how repayments work, or model one with the repayment calculator.