Installment loans are a common way to borrow money. Car loans and home loans are types of installment loans. This type of loan is to be paid back over a period of time, as opposed to payday loans, which are meant to be paid back with your next paycheck. People can also apply for personal or business loans that are to be paid back in installments. If you need money quickly and anticipate having money to make monthly payments, you may consider taking out an installment loan.