Everyone occasionally has sudden expenses for which they lack money. Unless time is urgent and you have good credit standing, most people think about going to the bank and applying for a loan first. However, when you get a negative decision because, for example, you don’t have an employment contract or your credit history is not crystalline, then there is a problem.
The non-banking services sector is helping. Most often, loan companies are associated with loans borrowed for a short period (payday loans). Meanwhile, they also offer installment loans. If you look at it a little closer, it turns out that they can be an attractive alternative to banking products. What exactly is this and what does this type of loan involve?
Online loans in installments
Years ago, when loan companies had just started to appear , the small payday loans were their flagship product. But since then a lot has changed, and at the moment such institutions have products that correspond to bank loans. Online installment loans are nothing new, though many people are just discovering them.
Online installment loans are something between a bank loan and payday loan. On the one hand, they are contracted in the non-banking sector and there are not many formalities. On the other hand, they are paid in installments according to the agreed schedule, which in turn is characteristic of loans. However, to get a loan, you have to meet many requirements. Banks verify creditworthiness, credit history, including BIK, analyze all household expenses. Installment loans are much simpler when it comes to procedures, and no loan company sets such stringent requirements as a bank. This is especially evident in online loans.
What is an installment loan?
Online installment loans are services that many loan companies have in their offers. The amounts at your disposal go far beyond what payday loans offer. Installment loans are therefore a great option for people who need money fairly quickly and the amount they want to apply for is large and impossible to pay back once. It is also an option for all people who, for various reasons, do not have to count on getting a bank loan. You don’t have to have many formalities to get installment loans , which makes them more accessible. Internet loans have just as few formalities as payday loans.
Installment loans outside of the internet
Like payday loans, installment loans can also be taken online. Both services are offered by the same financial companies. The procedure for analyzing the application also looks similar. Equally, non-bank installment loans are available online. At the same time, they are significantly different from payday loans. First of all, the repayment is not one-off, and it takes place in installments. The repayment time is set individually, but usually it can be up to several years. Although installment and payday loans are granted very quickly, payday loans can be on your account even within 15 minutes of submitting your application. Meanwhile, with an installment loan it can take several dozen hours.
Loans for monthly installments over the internet are growing in popularity, which is due to many advantages. As with other non-bank business services, you quickly decide whether to grant or not. Because loan companies have more room for maneuver than banks, they can be much more flexible and can offer conditions tailored to the borrower’s needs. The repayment can relate to a 30-day period, and it can be 50 or 60 months. So it’s easy to choose a repayment system that’s convenient for you. Due to the fact that the money is regulated in low installments, the risk of delay is significantly reduced.
Fast installment loans online
An online installment loan can be granted almost as quickly as a payday loan! Choosing to apply online, reduces the formalities to a minimum. Decisions about whether online installment loans are made even in one day. The same is waiting for the transfer. Considering how much time you have to wait for money in the bank, the loan is obtained at an express pace. Quick installment loans are just as easily available as payday loans.
The assumption of all loans online is to minimize formalities. The customer can turn on the computer anywhere and fill out the appropriate form. It has no complicated queries, and you don’t have to prepare many documents for verification. Thanks to this, employees of loan companies are able to analyze and determine the customer’s creditworthiness on the same day. In some cases, you get an answer after a few minutes.
What are the costs of an online installment loan?
Loan companies differ significantly from each other. This applies to both the functioning and the conditions, the amount of formalities, the sums that can be borrowed, and finally, the costs that are added to the basic amount that is borrowed. In the case of bank loans, you always have to reckon with the fact that interest rates, insurance and many other small costs will be a lot. With payday loans, you can even find free offers. And what does it look like when someone is interested in an online installment loan?
Before signing the contract, you should carefully analyze all points. Knowing how much an online loan actually costs, you can estimate whether the borrower is able to pay the loan back on time. Most people have no idea what components make up the total cost of the loan. Therefore, when you do not read the end of the contract, you may experience unpleasant disappointment at the first installments.
The installment loan is made of several components. The main amount is of course the capital part. This is the value claimed, without interest and interest. Apart from it is the APRC, i.e. the total cost of the loan per year. Comparing several offers with each other, the best will be an online installment loan with the lowest APRC. Next are the fees that arise if the repayment date is extended or exceeded. Here you can also deal with different values. While many loans are profitable when they are repaid on time, in some cases, when they become debts, the costs go up dramatically. When choosing installment loans online, you have to remember that.
How many installments can you make an online loan?
If this loan is to work exactly like an online loan in installments , then the liability should be spread over time. And it really is. However, the number of installments available can be variable. A lot depends on the loan company. The maximum can be 60 equal installments. Knowing the amount that the future borrower will apply for, he can easily verify that the amount and number of installments are satisfactory. To do this, simply visit the website of the loan company, then enter the amount and you can get an example simulation at what level will be the installments.
Observing the trends in recent years, it is easy to see that the online installment loan , which is the most popular, is for 12 or 24 months. Rather, few people decide on the maximum repayment time. This is important, for example, when financial difficulties arise in the future and the customer wants to extend the repayment period. If the online loan installment was for the maximum period, this option will be impossible.
How do you choose the best installment loan online?
Non-bank installment loans are available in many places. Loan companies are observing the market and which groups could be most interested in services. They noticed that among potential customers there is a group of those who need more money and for a longer time than payday loans offer. Due to the fact that they want to be competitive, they expand the offer. However, not all non-bank installment loans are equally attractive.
To find a loan tailored to your needs, you need to check at least a few of them. Offer comparison websites will be helpful. Once you see what a quick installment loan seems to be, then before you sign the contract, you need to verify that the loan company is reliable. Be careful if your site doesn’t have much information, such as your phone number, tax ID, or address. And even when they are, it is best to verify the list to see if the company is operating legally.
When analyzing the installment loan agreement, you need to analyze all the points of the agreement. In particular, costs that may be at a different level in each company. When deciding on installment loans, you need to think carefully about whether you really need to take on more commitments. There are situations when loans are the best solution and they really provide invaluable support. However, when it comes to taking a loan to pay back previous loans, it is better to refrain. Otherwise, it’s a simple way to get into a debt spiral.