What is an Installment Loan?

Installment Loan

An installment loan is a loan borrowed for an agreed set amount that is repaid over several months in installments until the full balance is settled.

Loan Agreement

Each loan agreement will vary between different repayment amounts and how long customers have this loan for but some instalment loans can be borrowed for up to several years and sometimes for even a longer duration.

Finance Loan

When a consumer takes out this type of finance loan their repayments will be for a set amount agreed between the payday loan lenders only and borrower.

Instalment Total Cost

Another thing to consider when choosing how long to take the instalment loan over is the total cost. While the lower monthly payments on a longer loan may seem attractive, the total amount repaid will certainly be higher than a shorter term.

Lending Solution

we consider where installment loans typically exist from we tend to think of banks offering consumers a long term lending solution. Often such loans are associated with long repayment periods, often years, and generally speaking for large amounts of money.

There are various companies that can offer short term ways of lending but instead of one month short term loans they will offer installment loans, so customers can now then borrow up to £1,000 and repay at a time that suits them more but normally no longer than 12 months would be considered for this type of financial product.

The market for borrowing a small amount of money for a short period of time is now changing and the options which exist within it are growing. For many years if a consumer needed to borrow an amount of cash

Pay The Full Amount

A consumer would be able to choose from a range of lenders but all presented the same option, borrow an amount until your next pay date and pay the full amount back.

Market is Expanding

it’s so important that the market is expanding and an increase in lenders offering instalment loans instead of shorter term loans is increasing with it.

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