We are sometimes faced with major purchases, and unexpected expenses. An Installment Loan can help you get ahead, while you make affordable small payments overtime.
What is an Installment Loan?
An Installment loan is money you borrow for any kind of personal use such as paying off credit card debt, investing in home improvements, taking a special vacation, or paying for wedding expenses and repay in small instalments overtime. Payment amounts are set beforehand (or fixed) and are due at regular intervals.
Key Features of Installment Loans
Quick access to cash is important for every borrower. Many providers have fast and easy application process for getting an installment loan online. For some others, you may start the application online and pick-up cash in-store, usually within a day.
Installment loans are generally repaid in fixed amounts according to the borrowers pay cycle (i.e. biweekly, semi-monthly or monthly) over a longer period of time up to 60 months, depending on the loan provider. Loan agreements and payment schedules are usually provided to borrowers to help them understand their cost of borrowing and other terms of the loan.
Unlike the lump-sum payments required by payday loans, the regular smaller payments that installment loans offer are more affordable and easier to manage for many borrowers.
Every payment amount addresses a portion of both the principal and the interest. In addition, many providers offer the opportunity to make additional payment or repay the loan at any time without penalties.
Cost of Borrowing
Installment loans are generally cheaper than payday loans. The cost of the loan is spread over multiple payments, so they are more affordable. When taking out a loan, always review you’re the loan contract and cost of the loan declaration thoroughly before appending your signatures on the documents.
Good lenders will report your on-time payments to the credit bureaus, which can improve your credit score. Likewise they may report into the bureau any missed payments not settled within 30 days.
No Hidden Charges
Look out for lenders without any prepayment penalties, expensive add-on products or any origination fees. Installment loans can be cost-effective because you will never be charged extra and get exactly what you ask for.
Great Option for SME’s
Installment loans can be highly beneficial to small or medium-sized enterprises. They will get fast and easy access to instant cash for their immediate business requirements and can repay overtime.
No Collateral Required
Many lenders provide unsecured Installment Loans without collateral. Borrowers just need to have steady source of verifiable income and meet other credit requirements to be approved for a loan. You get access to the money you need without having to borrow against the equity of a home or any other asset.