Installment loans are those which are designed for the convenient repayment methods for the borrowers. You need to pay in small monthly segments till the clearance of your debt which is also fixed. Installment loans
are further categorized into two types, one is for long-term loans with good credit scores plus collateral and another one is small-term loans for poor credit borrowers.
Long-term Installment loans: When you need to purchase something big like house, car or anything then, of course, you’ll need a big amount and that amount you can get from long-term installment loans.
Installment Loans Lending Solution
Banks offer these kinds of loans with heavy documentations, though, interest rates are comparatively very low. You can check a few of the following:
- Mortgage Loan: Need a house? Either first time or a dream house, you can get fulfill your desire with Mortgage. It’s a fixed-term loan with 15 years and 30 years of repayment period but not only this, but the adjustable term can also be availed as per your choice. Currently, the average rates are 3.7% for 30 years mortgage whereas 3.05% for 15 years. Along with that, there are mortgages such as Conventional, Jumbo and Home equity loans. So, you have various options to choose from as per your needs.
- Auto Loan: Nowadays vehicle is the need of every person and if you are also planning to buy one then this loan is for you. The time of repayment given for this loan clearance is 48 months, 60 months and 72 months, you can choose any slot as per your earnings and interest rates which is 4.31%, 4.37%, and 4.45% respectively. Installments can help you to maintain your regular expenses along with the loan through which you can purchase your car.
Documents required for a long-term Installment loan:
- Id proof
- Tax returns
- Bank account details with statements
- Good credit history
- Pay slips
- Photo identity and many more like collateral formalities
Small-term Installment loans: These loans are for them who need a small amount for a short duration. Not only this but people who have a poor credit score and get rejections due to this, they can also avail this loan. But obviously, it wouldn’t be of the same cost as a good credit borrower can get. So, the rate of interest for such loans is very high because there is no security of the refunding. Unlike banks, other loan providers offer this loan which you can search online as well.
- Personal Loan for Bad credit: This loan is an Installment loan without any restrictions on usage of cash. You can spend this money anywhere like vacations, maintenance of the house, repairing equipment. The cost which you’ll pay for this would be around 36% which can exceed more. And the amount that you can borrow can be several hundred and thousands of dollars.
Benefits of Installment loans:
- Easy to pay back your debt as loans like Payday loans are difficult to refund the whole amount at once which can spoil your monthly budget.
- With these loans, you can improve your credit score if you have poor, which can be beneficial for you in the future.
- Rates are also not very high than other short-term loans like credit cards and line of credit.
- With long-term Installment loans, you can attain those things about which you dream.
What you have to care about is:
- Sometimes, the lender may hide few details about the loan so you have to be careful about that. It doesn’t matter if you are borrowing money from banks because there your proper documentation will be done with full verification and banks are always legal. That’s why lenders for short-term loans must be scrutinized properly.
- The delivery of cash depends upon where you are borrowing the money. Like Banks take a few days for the approval but other loan providers for small loan credit cash on the same day in your account. So, be assured about your requirements that how early you need money.
Docs which are required for a short-term Installment loan are:
- Address proof with Identity proof
- Valid contact details
- Employment proof
As compared to other loans, an Installment loan is the best solution that is provided to the borrowers in this lending industry.