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Installment loans are a kind of financial product to help individuals. These loans can be repaid over time. The borrowers avail good amount of money and pay it back according to the repayment schedule. Usually, there is a fixed amount and rate of interest.
The borrower needs to make periodic repayments. Many people avail of personal loans. Some of the factors due to which borrowers opt for personal loans are higher amounts, prolonged repayment duration and efficient application.
But every loan has both sides. Hence, before opting for any loan, make sure that you are fully aware of all the aspects of the loan.
The whereabouts of 12-month installment loans
It is important to know the types of installment loans that are available in the market. There are several lenders that deal with installment loans and offer the amount to the borrowers.
Along with installment loans, you can also prefer availing of 12-month payday loans with no guarantor. These loans make sure that you do not have to deal with your financial worries.
Several kinds of Installment Loans
There are several types of installment loans that the lenders offer. Every loan has a different purpose for solving. Some of the loans are mentioned below.
- Auto Loans
One of the types of 12 month installment loans is auto loans. They are usually borrowed to purchase a car. Whenever borrower needs to buy their car, they go for an auto loan. The repayment range for these loans is from 12 to 96 months.
Not every lender has this duration for repayments. This is the most common duration of the loan repayments. Usually, the loans that have longer repayment terms have a lower interest rate. If the duration goes on for a long time, the borrower is in benefits.
On the contrary, the borrower is offered a higher interest rate if the loans are for shorter repayment terms. On the loan amount, the user or the borrower pays the interest rate.
- Mortgages
Mortgages are another type of installment loan. These loans are usually opted by the borrowers for buying a house.
The duration of such loans is from 10 to 25 years. This is along repayment tenure and usually does not change. It usually involves a fixed rate of interest along with it.
- Personal Loans
Personal loans are usually referred to as multipurpose loans. A borrower may have a medical bill to pay, whereas another borrower may have a payment to make. Every borrower has a different purpose.
Hence, there are different interest rates charged to separate individuals. These loans do not require collateral, unlike mortgage and auto loans.
Advantages of Installment Loans
There are several advantages to these installment loans. These loans are one of the best ways to have financial assistance in life. Along with this assistance, they also help you to repay your loans.
There are several reasons why installment loans can be the correct choice for you. You have to decide and analyze the reasons and apply for your loan amount.
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Higher Borrowing Limit
With installment loans, you can borrow higher limits. If a borrower needs a huge amount of cash, installment loans are their go-to option.
This is one of the prime advantages of installment loans. Especially during emergencies, these loans work wonders for you.
Also, if you are borrowing a huge amount, it will eliminate the possibility of multiple loans in future. Make sure to repay your loans on time, and you are good to go.
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Quick and Easy Application
The application process involving installment loans is easy. It gives you quick access to your loan amount. The lender offers an immediate response to your application, and you get to know whether you are receiving the amount or not.
Also, the application process is online. Hence, you do not need to step out of your home. You can easily avail these loans from the comfort of your home.
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Quick Cash
Along with a quick application process, you received cash as well. Once your loan is approved, you receive instant funds. These funds will be credited to your loan account or bank account.
Along with the quick cash, you get flexible repayment terms. These terms are dependent on your type of loan.
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Apply Any Time of the Day
Installment loans can be applied at any time of the day. These lenders are usually accessible 24 seven. Fortunately, many lenders work round the clock. There are no specific business hours to apply for this loan.
If something unexpected happens at an odd time, you still have access to these installment loans.
You need a stable internet connection to apply for this loan. If you are applying for a good amount that must go through a bank counter, you must wait for the next day.
That is the maximum time that you need to wait. Otherwise, you have any time of the day to apply for this loan.
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Flexible Repayment Terms
Installment loans usually have flexible repayment terms. If the borrower is acing any kind of difficulty, they can always talk to the lender. Instead of paying huge amounts at one go, you can pay installments over a period of time.
The repayment schedule is fixed, but the amounts can be changed. It allows the borrower to be flexible in their financial management. If the loan is not to be paid in one go, the borrower has good space to manage their finances.
Conclusion
Installment loans can be the right solution for your financial needs. This is the best go to option for you always if you require immediate cash with instant approval.
Sometimes a borrower may face emergencies, and they have nowhere to go. In such cases, installment loans will be helpful for you. Also, they do not affect your credit score if you are somehow finding it difficult to repay.
Try to finish your loan payments on time to have the best credit score. If you are not able to make it, you will be increasing your debt burden.
