An installment loan relates to both commercial and signature loans that are extended to borrowers and that require regular repayments. Each one of the regular repayments for the loan includes a percentage for the major quantity Principal Payment A major repayment is just a repayment toward the first number of a loan that is owed. Put simply, a major repayment is really a repayment made on that loan that decreases the residual loan quantity due, in place of signing up to the repayment of great interest charged regarding the loan., along with a part associated with the interest in the financial obligation.