Installment loans are an ideal solution for people who need cash for a larger expense but do not have the creditworthiness to take out a cash loan in a bank. The most frequently available offers are from 3 to 5 thousand. USD, but you can also find installment loans of 10 or 20 thousand. spread over even 36 months. People interested in such a financial product should carefully compare the offers available on the market, because the conditions proposed by individual companies differ significantly.
What is worth knowing about installment loans?
Installment loans are available in non-bank companies’ offers. They are much higher than payday loans, and lenders grant them on slightly different terms. While most quick loans can be taken for 14-30 days and their amount ranges from $ 100 to 1500 (sometimes slightly higher payday loans are available), installment loans are usually granted for 12-24 months (higher are also available) loans for 3 years).
Payday loans should be repaid in one installment – on the date specified in the contract. The installer will attach the installment repayment schedule (same as banks) to installment loans. Most often they are monthly, equal installments. Some companies also offer installment loans with decreasing installments. In the case of larger sums, they are more beneficial because the lender charges interest on the outstanding sum, which with decreasing installments generates savings on the total cost of the loan.
Why is it worth comparing installment loans online?
Installment loans can be taken online. The procedure here is similar to online payday loans – the customer is verified on the basis of a test transfer from their own bank account (the data is verified by the bank beforehand).
A useful tool for people who are looking for a favorable online installment loan are special comparison websites. Such tools are available free of charge on the Internet. The lists gather current offers available on the market (website owners care about tracking new products and favorable promotions).
The ranking allows you to quickly compare loans offered by various companies in terms of:
- maximum loan amount
- repayment period (number of installments)
- interest rates
- installment repayment method (equal or decreasing installments)
- additional fees (commission, margin and other handling fees charged by the lender)
- installment deferment options
- contractual penalties for exceeding the repayment deadline
All these fees make up the total credit cost, so it’s worth comparing them carefully. This will allow you to choose the cheapest installment loan for yourself without leaving your home.
Submit a loan application without leaving your home
In comparison websites you can usually also find additional information about the requirements of loan companies (income certificates, income level, age of the borrower, loan collateral, documents needed for the contract).