An installment loan is an amount of money that’s borrowed and then repaid over a set period of time. Typically, the payments are scheduled monthly or bi-monthly. While there are some alternatives to installment loans, such as payday loans, the benefits that are offered by an installment loan make them an appealing option for many people.
For those who are considering taking out an installment loan, knowing what benefits they offer can be helpful. Keep reading to learn what benefits are offered.
Reliable Interest Rates and Predictable Payments
An installment loan will have a fixed interest rate for the entire life of the loan. A fixed interest rate is appealing because the borrower doesn’t have to be concerned with the rate increasing, which can result in a much higher payment down the road. Also, borrowers know what they are expected to pay each time their payment due date rolls around.
Lower Monthly Payments Due to Longer Loan Terms
An installment loan will typically be a longer-term loan. For example, if there’s a longer amortization period, such as 10 to 15 years, then it means the payments are going to be much lower and much easier for the borrower to make without putting themselves in a financial bind.
Receive the Money Quickly
In most cases, it won’t take any more than two weeks to receive the money from an installment loan lender. In many cases, there are lenders that can provide the funds in as little as two days after the application has been submitted and approved The requirements for the installment loan are usually loose, and lenders don’t usually require much documentation. This means that the time needed to process the application is short. Also, the borrower can receive a lump sum of cash right after the application is approved.
If someone is considering an installment loan, they should consider all the benefits that are offered. They should also find a reputable lender, such as Blue Trust Loans. By doing so, they can feel confident they will have the money they need without the financial hassle that comes with other types of loans.