Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
A fixed installment indicates the fixed depreciation amount annually which remains equal and fixed. This is calculated as per the fixed installment depreciation method. At the end of the year, the fixed amount will be removed from the asset’s book value, while it will be charged to the P&L (profit and loss) account or the income statement. A fixed installment is the monthly payment for any mortgage, which is worked out by the financial institution or the lender. This is based on several aspects, including the property price, down payment, rate of interest, loan term, and more. Fixed installments may keep varying on the basis of the loan terms.
A fixed installment is readily applicable for the home loan and mortgage segment. Many borrowers and home buyers choose this type of interest rate in order to have a fixed payable amount every month. They prefer zero fluctuations and do not want any interest rate increases in the near future.
