Need an installment loan? Here’s how you can land the right one
Many times, we fall short of funds to buy the dream house or the vehicle we always dreamt of. But, living in the modern era has its perks. Believe it or not, even with your insufficient fund, you can study abroad, buy your dream car, or even purchase the perfect home. All of this is possible due to the existence of installment loans. For those who aren’t clear about the concept of installment loans, keep reading.
What are installment loans?
- An installment loan is the kind of loan that allows the individual to repay the loans in a series of predetermined installment over a period of time.
- The bank from where you secure your loan will expect you to repay the entire loan with interest by the end of the predetermined period. And, if you fail to do so, then legal action might be initiated against you.
What are the different types of installment loans?
- Unsecured installment loans – This type of installment loan involves securing a small amount of money as a loan against high rates of interest. This type of installment loan is a popular kind of online installment loan. It operates in a similar manner, the loan has to be repaid at the end of the term.
- Mortgage loans – Mortgage loan is the most common kind of installment loan. You can secure a loan for your house, and repay the entire debt before or when the debt period gets over.
- Student loans – Students loans are the kind of installment loan that allows people to borrow money to fund their higher studies. The interest on these kinds of installment loans is lesser than the others. Students are expected to pay off this debt once they secure a job after completing their education.
- Car loans – Car loans come in handy when you wish to buy a vehicle and are short of funds. All you have to do is opt for a car loan and make regular monthly payments till the time the entire amount is paid up. If you do not adhere to the payment cycle, there’s a risk of your vehicle being taken in the bank’s custody.
How does one apply for an installment loan?
Applying for an installment loan is no rocket science. All you have to do is follow these steps.
- Fill up a form at the bank or the financial institution that is willing you to give an installment loan.
- Once your application is processed, the bank will inform you about their lending decision instantly.
- Once your application is approved, the bank will like to know the amount you will borrow.
- Your documents will be verified, and you will need a valid identification proof, an income proof and you must provide the right information during the verification process.
- Once you clear this stage, you have to select the mode through which you will like to receive the money.
How to choose the right installment loan lender?
It is imperative that you choose the right installment loan lender in order to avoid getting conned. Here are some effective to choose the perfect lender.
- The first and foremost thing to do is look around. Research meticulously and go through a list of installment loan lenders, and shortlist the ones you think are reliable.
- It is imperative to compare the offerings of the various lenders before you arrive at a conclusion. There are various tools available online for you to carry out this task.
- It will be sensible if you borrow money for a short term. If you decide to stretch your payment period over the years, you will have to pay more interest.
Which are the top installment loan lenders?
- Lending Club
- Wells Fargo
So, if you ever feel the need to opt for an installment loan, you know what exactly to do.