What is the term for the regular payment a borrower agrees to make to a lender?

The term "installment" refers to the regular payment that a borrower agrees to make to a lender as part of a loan agreement. These payments are typically made at consistent intervals, such as monthly, and include both principal and interest portions. The purpose of these installments is to gradually pay down the loan balance over time, ensuring that the borrower fulfills their financial obligation to the lender.

In the context of mortgages, the installment amount can change depending on the terms of the loan, such as whether it has a fixed or adjustable interest rate, but the concept remains the same: the borrower makes periodic payments until the loan is paid off. This structured approach to repayment is crucial in maintaining financial discipline and ensuring transparency in the borrowing process.