But they all fall mainly into two factors in common: they are installment loans; are lines of credit that charge interest. With the installment loan, you borrow a specific cash value from an institution and you agree to repay the loan, plus interest, plus a series of monthly payments.
Qualifying for a personal loan can be a great way to finance a car, buy a home or even pay for a college degree. Retirement loans can be useful for repairs and maintenance at home, they are also installment loans as well as your credit card with a single installment.
What is an installment loan?
As we mentioned earlier, with a personal loan, you agree to pay a fixed monthly payment over the term contracted with the lender. For example, if you borrow $ 10,000 for a five-year period at an interest rate of 5.67%, you would pay RS $ 294.26 per month for 60 months (or installments) and a total balance of $ 17,655.60. In a revolving credit line such as credit card, where borrowers have a set limit that they can repay and reuse over time, if they delay the invoice the interest and penalties can reach 18% per month.
Installing a loan with a bank or a financial institution can cost you a few hundred more dollars in the account. Just like any modality, in the personal loan installment your lender will also ask a number of additional questions, including the name of the company where you work, the number of years you work, how long you live at the current address, all this to determine if you probably you’ll manage the monthly repayments properly.
How often can I repay a loan?
Yes, in general the amount of installments depends on both the amount requested, the income and the type of credit operation involved between the borrower and the lender, and many other factors as well. In most banks and financial institutions, for example, installments can be made in 12, 18, 24, 48, 60, 72, 96, 120, 144, 240 and up to 420 installments, these terms vary according to the loan requested.
Does the number of installments influence interest rates?
Yes, there is a direct influence on interest rates. Because of this, it is always interesting for the borrower to research and compare the largest number of credit offers at different lenders. Usually rates are between 1.15% and 30% a month, from the secured loan to the loan with the private lender.
How to get an installment loan?
Banks, financial institutions, credit institutions and credit companies. Do not forget that some data that lenders will probably analyze are: your debt and income ratio, you can pay any amount from your credit card bill, but you can not define how much you can pay per month, who defines this is your income and your profile of lender.
A good place to start comparing a personal loan installment is with your own bank or local financial, if that is not possible, access the dozens of websites that compare online loans where you will surely have at least 5 potential lenders who will lend the amount that you need even though you are denied with a dirty name.
As I said, there are many online lenders that offer installment loans from short to long term. However, it is important to examine every business or lender that you are considering applying for a loan before you begin the negotiations, as not all companies are the same, identify the trusted ones.
For those who want to get money on loan, there are no difficulties accessing the internet, online systems are well advanced and today you can get quick and easy money without having to step outside your home. Using your smartphone, mobile phone, tablet or computer has become one of the most practical ways to get a loan. Everything is done digitally, until the signature.