Instalment Loans

Instalment Loans To Your DoorInstalment loans provide the borrower the opportunity to spread the cost of a loan by splitting the repayments into smaller, more manageable weekly or monthly instalments which can be spread over an agreed repayment term, often up to a maximum period of a year.

Whilst they may often appear a more expensive way of borrowing when compared to payday loans they could help avoid the reliance on short term loans and so could be a better option in certain situations.

What Is An Instalment Loan.

A short term “payday” type loan is designed to bridge the gap until the next payday, it’s meant to help you through those months when cash flow becomes a problem due to unforeseen circumstances. Borrow a small sum of money, pay it back on payday … end of! However, what more and more people are finding is that they are taking out a payday loan to tide them over, paying it back and finding themselves short the following month and so bridging the gap with another payday loan and hence falling into the start of the payday loans trap – relying on borrowed money each month.

An instalment loan on the other hand, whilst perhaps not providing the same, almost instant access to cash, also provides the same solution for a cash flow problem and still pretty fast. The big difference is that instead of paying back in one lump sum plus interest on a date to coincide with the next payday, repayments can be spread over an agreed period – often several months or even years in some cases, thus minimising the monthly cash flow impact to the borrower and avoiding the dreaded monthly loan trap.

The typical duration of a payday loan is between 30 and 40 days, some companies will lend over a shorter period too, the actual repayment date will be set to coincide with payday. This is fine if your borrowing is a genuine one off and the full repayment of the loan is affordable without any need to plug another gap the following month. A typical short term instalment loan enables repayment to be spread over a 4, 6 or in some cases, 12 month period.

How Much Can I Borrow.

Because of the ability to spread the repayments the maximum available loans will often be a little higher with many lenders advertising instalment loans from just a few hundred pounds and up to two to three thousand. The typical duration of a payday loan is between 30 and 40 days, some companies will lend over a shorter period too, the actual repayment date will be set to coincide with payday. A typical short term instalment loan enables repayment to be spread over a 4, 6 or in some cases, 12 month period.

Who Can Apply.

You’ll need to be able to satisfy all the usual basics – adult, UK resident with UK bank account and regular employment or self employment income within required levels.

Homeowners or tenants will be eligible as such loans do not normally require any form of security. Certain lenders will consider applicants with a poor credit history or rating – check first if you think this to be an issue.

What Can I Use The Money For.

Cash can be used for any purpose you choose. It’s classed as a personal loan that’s granted to the individual rather than for a specific purpose like a car loan or mortgage. Home improvements, cash flow, career progression or training, emergency travel, unexpected bills etc – the choice is yours.

More Information.

Costs will vary from lender to lender but can be quite high. All lenders however are now required to display a representative example showing the interest rate, APR, total repayment cost and charge for credit which will enable the borrower to decide on the most cost effective solution for their own particular circumstance. Interest rates on instalment loans may vary quite considerably as can repayment terms but these representative examples can be used to initially compare costs and to work out the best way of borrowing for each individual situation.

Always seek professional advice before taking on an instalment loan or any other form of borrowing.

Doorstep Loans Bad Credit – Flexible Instalment Loans