When you’re looking for a lender that can lend you some amount of cash, you can search for it online.
Online installment loans are among the in-demand loans nowadays. Borrowers seek this loan because of its excellent repayment structure, which evens out the principal and interest into monthly installments.
This loan type is suitable for individuals who need funds for emergency expenses and important purchases. But before you apply for it, you should take time to learn about this type of loan and what are the positives of getting an installment loan.
What are Examples of Installment Loans Online?
Typing installment loans on Google’s search bar will provide you with results about the loan products under this type of loan. The three popular loans that you can pay back on an installment basis are auto loans, personal loans, and house loans.
If you walk up to a car dealer to buy a car, it’s likely that the dealer will also offer you a car loan to finance your purchase. Auto loans typically require collateral, and it has a loan term between 3 and 7 years and interest rates between 3 to 15 percent.
Aside from car dealerships, you can also obtain a car loan from traditional banks, credit unions, and online lending companies.
Personal loans are available at credit unions, banks, and online lending companies. Folks get this type of loan for purposes, such as debt consolidation or paying for medical bills or big purchases.
Personal loans typically have terms that last from 2 to 5 years and rates of interest between 5 to 35 percent. Make sure to inquire from different lenders to find a deal that fits your needs.
Buying a house requires a huge amount of cash. Unless you’re rich, getting a loan is vital to fund your purchase. House loans typically have loan terms of 15 years to 30 years, and you can pay back the loan amount and interest in monthly payments.
Lenders may vary as to what type of interest rate will be imposed on a house loan: a variable interest rate or a fixed interest rate.
Benefits of Obtaining an Installment Loan
There are many reasons why online installment loans are gaining popularity among borrowers. Just take a look at this list of advantages to know why.
No Hassle Application Process
As long as you have an internet connection and a smartphone or computer, you can look for an installment loan online and apply for it whenever and wherever you are. Just fill out an application that you can find on the online lending company website and submit it once you’re done.
Typically, you can get a reply from the lending company whether you can get the loan or not within the day or the next business days. The money you’ll borrow will also be deposited on your account right after the loan approval. Indeed, this loan type is great for folks who need money in times of emergencies or unforeseen expenses.
You Can Easily Manage Your Repayment
Yes, you heard it right. One excellent feature of an online installment loan is its repayment structure. The lender will give you the loan amount in a lump sum, and you can pay it back in monthly installments until it’s paid in full. This feature allows you to manage your repayment effectively without hurting your finances.
Higher Borrowing Limits
We’ve discussed home loans and auto loans in the other subheads. These loans are under installment loans, and they’re meant for large purchases. In other words, depending on your purpose for applying for the loan, the borrowing limit of installment loans is higher than other loans.
So, if ever you need a large amount of cash to pay for something, consider getting an online installment loan. Aside from big purchases, another benefit of getting a higher borrowing limit is that you don’t have to obtain many loans at the same time to get the money you need.
You Have the Option to Rollover the Loan
It’s advised to pay back your loan punctually., but you just don’t when money difficulties come. Sometimes you can’t repay your loan on schedule because you need to use the money for other important things.
If that’s the case, you can rollover your loan. This option means that you turn the old loan into a new loan with a new interest rate. It’s a way to avoid defaulting on your loan and getting a bad credit.
No Strict Credit Checks
It’s indeed a problem for borrowers who have imperfect credit scores to obtain a loan. But online lenders who offer installment loans can give you a chance to borrow money despite your poor credit profile. Most of the time, you only need to have a regular income to qualify for an online installment loan.
I hope that this guide to online installment loans is clear to you. If you have to pay for important purchases, consider getting this type of loan. It has several advantages that you can’t find in other loan products.