Personal instalment loans are paid back over a number of months and differ from payday loans because they can be paid back over a longer term. The size of the loan can vary so they can be used for a number of different purposes. You do not usually need to provide any security for an instalment loan and so it does not need to be secured against your property or any other assets that you may own. Read More >>
What Are The Advantages Of An Instalment Loans?
Instalment loans can be paid back over a longer period than a payday loan so are often more affordable. The actual repayment term may depend on the amount that you have borrowed. You may be able to choose the repayment period so you can find a payment amount that suits your needs. One thing to bear in mind though is a longer repayment period will probably means you will pay more interest.
There is no need to use any property as collateral for an instalment loan. Hence they are ideal for people that are not homeowners. The only condition that will be attached to the loan is that you can afford the repayments. Checks will be made by the loan company to ensure that this is the case.
Some instalment loans charge interest only on the amount that is still owed. Which means that you will save money if you are able to pay the loan back more quickly. If you think that you may be able to make extra payments on your loan. Then it may be an idea to try and find one that does not make any charges for repaying the loan early.
How To Apply For An Instalment Loans
Most instalment loans can be applied for over the phone or online. If you are applying for a loan from your bank then you may be able to apply in branch. There are certain pieces of information that you are likely to need whichever way you apply. Some of this information is described in more detail below.
The loan company will want to see that you can afford the repayments and so they will need details of all your incomings and outgoings. It can be helpful if you have all the information that you will need to hand so you may need to find documents such as wage slips and bills. The loan company may ask to see copies of these.
You may also need to provide information about your employment details. The loan company will not contact your employer but they may need to know details. Such as how long you have worked there and if you are on a temporary contract. This information will allow the company to make a decision about whether you are likely to be able to afford the loan payments in the future.
Final checks and acceptance for Instalment Loans
The loan company will need to verify that you are who you say you are before they can grant you a loan. If you are applying in person then you may need to show some form of photo ID. If you are applying over the phone or online. Then the loan company may be able to verify your identity electronically. Before you apply for a loan it may be worth checking that you are on the electoral roll. As this may be something that companies look at to check your address.
Credit checks can also help to verify your identity and this will also help the lender see what your financial history is like. Your credit file contains information about any existing credit that you have. And if you make your other repayments on time. Occasionally there can be mistakes on your credit file which may affect your chances of getting a loan. Therefore, you may want to check your own credit report before you make the application. Read the entries to confirm that all the information is correct.
It is common for decisions to be made about the loan immediately and you should be told what the decision is there and then. Some loan companies can also provide you with the money the same day if your instalment loan application is approved.