Loans are no doubt are saviours in the tough times but their bulky version makes their bad image. The loans that have hefty instalments and higher rates are not good for your financial health. On the contrary, the loan choices with small and absolutely affordable instalments are best to avail. There is a professional term for that – ‘insantallment loans’. Yes! Quite a familiar name. There is so much to exploit from these loans and you should know that.
Options to repay monthly as well as weekly instalments
Perhaps many of you are not aware of this versatile feature but this is true. Instalment loans have varied repayment options. Either you choose to repay on weekly basis or on monthly basis.
The Repayment Schedule Depends On The Following Factors
- Loan amount – For smaller amount, weekly instalments are advisable and for a little big lot of money, monthly repayments are best.
- Loan tenure – This is more on the discretion of the lender. Some offer weekly instalment system for longer duration, while some are ready to go for the monthly system. Same is applicable when the tenure is small.
- Repayment capacity – Of course, how one can forget this, at least not a lender. With good income, it is always easy to get the required tenure.
Purposes to borrow funds
There can be many reasons to apply for the short-term loans. Teeny-weeny needs are more annoying as they come frequently and shake the roots of finances.
- Some medical emergency
- A sudden plan for a weekend trip
- Welcome to a new baby a few days or weeks earlier than the expected time
- Educational expenses – tuition fee, purchase of study material and for a project.
- Festival preparations
Loan procedures – simple and speedy
You do not need to stay much on your mobile or laptop or desktop while applying for the loan. From Starting to end point, procedure goes smoothly.
- The application procedure –
- Apply to the lender on its website – The online lenders have brief application forms that ask for only basic details. Fill them and submit.
- Get approval decision – Within a few minutes after the submission of application, the approval decision comes.
- Receive funds – The funds reach to your account in a short-time after the approval decision.
DESPITE bad credit score you can apply
Not a myth but a reality. If income status is good, it is possible to get the installment loans for bad credit by direct lenders on cheaper rates. Income-outgoing ratio is very important as salary of a person can be good but if expenses are more, a new loan instalment may not fit.
First-time borrowers can too get funds
Is this your first-ever loan? No issues, the instalment loan lenders accept the applications of first-time borrowers. In other words, you do not get rejection just because you have ‘no credit history’.
No credit check is there
Yes, it is there. If you have bad credit or no credit history, credit check may have bad effects. The impact of credit file search remains for 12 months. Many borrowers out there have same concern. Not all lenders provide funds but several choices are certainly available.
- In exchange of ‘credit check’ lenders do this
The question is how to know the repayment capacity of an application without credit score perusal. The answer is lenders with no credit check facility get some other details from the applicant to avoid credit check. These are monthly income, job stability, address proof.
High approval rate
9 out of 10, 49 out of 50, 99 out of 100 loan applications get approved. The instalment loans have higher approval rates and liberal approach of online lending is the inspiration behind this. The practice to consider the repayment capacity as the most important factor is the actual stimulator. It increases the number of applications and approvals as bad credit scorers and first-time borrowers can also apply.
Some enhancing features
There are other qualities that make borrowing funds easier and you can feed all your small financial needs.
- No upfront fee
- 100% paperless procedures
- Personalised pricing
- Lower APRs
Available tenure options
This is something on the discretion of the lender but generally, the available terms are 3 months, 6 months, 9 months, 12 months, 15 months, 18months, 24 months. Again, this may vary from lender to lender, before you pick a loan confirm the tenure.
No obligation loan quote
The short-term loans with small tenure and small amount do not need the backing of guarantor or collateral. The income status of the applicant works as the decisive factor. Good capacity to repay means approval, poor capacity means rejection. You are on which side?
Financial decisions should always be rational and calculative. The loan calculator available on the website of the lenders helps you get an almost perfect rate quote. This helps get an idea of the total cost of the loan and you can decide whether you want to continue with the same lender or switch to the other choice.
Mostly a loan calculator asks for the following information
- Loan amount
- Loan tenure
The loan amount limit
Again, this is something where every lender differs from the other. But from £300 to £15000, this may stretch up to £20,000. However, you will get the amount or not, depends on your own affordability. Try to perform best on that part and then it is easy to qualify for the desired amount. If there is any additional income, do not forget to mention it.
The final word is….
If everything about instalment loans is supportive, there should be perhaps no second thought on their utility. Apply for the loan, borrow on flexible terms but play your part too. Repay on time.