Installment and loan are two different concepts. A simple understanding of a loan is to borrow money with interest. Loan is a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and must return them.

Loans in a broad sense refer to loans, discounts, overdrafts and other borrowing funds. Installment refers to the repayment method, which is divided into three installments, six installments, 12 installment, 24 installments, etc. Besides installment, there are other repayment methods for loans, such as giving priority to interest, repaying loans with loans, matching principal and interest, average capital and so on. Loan refers to the whole process, including the process of borrowing money, withdrawing money and paying back the money, while staging only refers to how to pay back the money.

pay by Installments

Installment payment was developed after the Second World War. At first, it was limited to buying ordinary daily goods or services. Later, with the rapid development of productivity, the scale of industrial and agricultural production is expanding day by day, and the required expenses are increasing day by day. In addition, with the development of bank credit, the field of installment payment has expanded to enterprises that buy large machinery and equipment and raw materials.

With the improvement of China's financial services and the change of people's consumption habits, installment payment, which is popular abroad, has been introduced to China and quickly recognized by domestic consumers. It is usually young people who have poor ability to pay but have consumption needs who spend by stages. The products it consumes are usually laptops, mobile phones and digital products.

Installment payments are usually provided by banks and installment suppliers. Banks provide consumers with personal consumption loans equivalent to the amount of goods they buy, and consumers use the loans to pay their suppliers, who provide guarantees for consumers and bear irrevocable joint and several liabilities. Young people who spend by installment are often called "installment families".

Installment payment is actually a loan provided by the seller to the buyer. The seller is the creditor and the buyer is the debtor. The buyer can get the goods or services he needs only by paying a small amount of money, but because the interest is included in the future installment, the amount paid for the same goods or services by installment is more than the amount paid in one lump sum.

How to deduct money when buying a mobile phone online in installments? Must the money in the bank card exceed the price of the mobile phone? Or is it equal to borrowing money from the bank and paying it back slowly?

Installments are similar to loans. The mobile phone is given to the individual first, and then the individual gives a part every month. There is no need to have money in the bank card, just a fixed number of installments every month.

When handling the mobile phone installment business, you need to provide your own bank card and bind it to the bank card withholding, and the fee will be automatically deducted from the card on the monthly repayment date.

You need to deposit more money in the card bound by installment payment than the monthly deduction. If the repayment date is exceeded, the repayment amount of the current month will not be repaid, which will affect the loan credit.

Installment payment is divided into three periods, six periods and twelve periods. The longer the number of periods, the higher the handling fee.

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Suggestions when using installment payment:

1. Define the scope of installment payment.

Banks have different ways to pay by installment. In addition to the goods in the credit card installment catalogue, some banks have specific requirements on the place and amount of purchase. Be sure to know whether this consumption can be paid in installments before shopping.

2. Accurately calculate the handling fee

Although credit card installment payment is free of interest, there is a handling fee. You need to calculate the handling fee before consumption, and the price is acceptable after adding the handling fee. You can continue to use the credit card to pay by installments.