No more financial worry with installment loans
A loan is when money, property, or other material goods are lent and given to another party or entities by organizations, individuals, or entities. Loans can be an open-ended line of credit or a specific, one-time amount. The borrower of the loan incurs a debt and must pay interest until the debt has been paid back.
What are the different types of loans?
- Secured loans: These are widely used, especially by individuals investing in property. In this type of loan, an asset is pledged as collateral for the loan taken by the borrower.
- Unsecured loans: These are loans where no collateral is required. It could be in the form of credit cards, bank overdrafts, personal loans, etc. The interest rate on this type of loans is different and may not be regulated by the law.
- Demand loans: Secured and unsecured loans can also be demand loans. These loans are taken out for a short period of time and come with a floating interest rate. The lending institution can call for the repayment of this loan at any given time.
- Subsidized loans: Student loans are typically known as subsidized loans, as they do not accrue any interest as long as the student is enrolled in education. It is very beneficial to those who wish to study more but are facing financial issues.
- Concessional loans: These are also known as ‘soft loans’. They give the borrower breathing space to repay the loan amount in terms of interest accrued on the loan amount or the time period, or in some cases, both.
How do interest rates affect loans?
- Interest rates have a major impact on loans.
- The higher the interest rate, the higher will be the monthly payments or the longer the payoff time as compared to loans with low interest rates.
- Keep this in mind so that you pick the best installment loan for yourself.
What are the best installment loans offered by institutions?
- SoFi: It gives borrowers up to $100,000 as well as unemployment protection for 12 months. The interest rate varies between 6.28–14.87%, depending on the amount of the loan. The time frame for this is from 3 to 7 years, and the borrower will need to have a minimum credit score of 660. Additionally, the members get lots of perks, like access to wealth advisors, career planning, and exclusive events. Also, there are no late fees or prepayment penalties, and there’s zero origination fees.
- Citizens Bank: The best installment loan from Citizens Bank gives borrowers up to $50,000 as well as the possibility to add a cosigner. The interest rate varies between 5.99 and 18.99%, depending on the loan amount. The time frame for this is between 3 and 7 years, and the borrower needs to have a minimum credit score of 680. Additionally, the clients who have savings or checking bank accounts with Citizens Bank get a rebated interest rate on the loan. Also, there is no fee at all.
- Marcus by Goldman Sachs®: It gives borrowers up to $40,000 and the option to tailor the monthly payments. The interest rate varies between 6.99 and 24.99%, depending on the amount borrowed by the client. The time frame for this is between 3 and 6 years, and the borrower needs to have a minimum credit score of 660. There is no sign-up fee or any kind of late fee.
What are the requirements to get an installment loan?
- The borrower has to be more than 18 years old.
- The borrower must have a steady income.
- The borrower must have a valid bank account.
- The borrower must have a proper physical address.
- The borrower should not have suffered recent bankruptcy.
How can you decide which installment loan suits you best?
- Always look up for the different installment loans that are being offered by the institutions in your city for the best one.
- Choose the best installment loan based on the interest rate and duration of the loan term.
- Compare different installment loan terms from different institutions, and settle for the best that suits your requirements.
- Make an informed decision and one that does not put you under financial duress.
- Take a loan that you can pay off with ease and for a duration of time that is not too stressful.
- If you have doubts regarding anything at all, do not hesitate to discuss them with your financial advisor. It is better to be safe than sorry.