5 Advantages Of Getting Instalment Loan For Financing Your Home Or Car
Instalment Loans; We all know that getting a loan is a very tough task, but not everyone can get their dream home or car because of their low credit score. The good thing is that you can easily overcome the problems if you apply for an instant loan in UK.
There are three kinds of loans available for everyone like personal loans, business loans, home loans, personal installment loans, home mortgages, auto financing and more.
In general, the instalment loan in UK is different than the regular personal loan because it provides higher interest rates and lower repayment amount.
The most common thing that people are afraid of when they are thinking to get an instalment loan is the higher interest rate and the longer repayment period.Instalment Loans; But the truth is that these disadvantages are not at all disadvantages for the customers.
Here are the benefits of the instalment loan in UK:
Interest rates – When you apply for an instalment loan, the lender will charge higher rates than the other loans. But the loan is paid back in installments in a month’s time. In other words, the loan is taken up as a fixed amount for a particular period of time.
Repayment amount – Usually, the repayment amount is around 40% to 50% of the total value of the item. So if the loan is applied for the purchase of a house, the repayment amount will be around 2 lakh.
Payment time – Normally, the repayment amount is fixed on a monthly basis. There are only four options in this case:
Monthly – the payment is made each month.Instalment Loans
Bi-monthly – the payment is made half in the beginning and half at the end of the year.
Semi-annual – the payment is made after six months and half of the payment is made after two years.
Annually – the whole payment is made in one single lump sum after a year.
Flexible repayment – The repayment amount is flexibleInstalment Loans, and this means that the customer can make the repayment based on his own choice.Instalment Loans; So if you want to get a monthly repayment, you can choose the semi-annual or annual method, but if you want to get bi-monthly or monthly repayment, you can choose any option that you want.
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You can get a short term loan to meet your financial obligations and it can be used for purchasing goods and services.Instalment Loans; You can get a loan up to 3 months and you will be able to pay it off within 2 weeks to a month.
2) Flexible repayment
Repayment of the loan can be paid over a period of time in easy installments. So, you will not feel the pinch of the high interest rates and it is easy to repay.
3) You will not experience any hidden costs
There are some banks who charge high fees for the loan and for the processing of the documents. You will not have to worry about these kind of charges if you use an online service.
4) You will get easy access to the funds
Online loans are easily accessible. You will not need to visit the bank branch to obtain a loan. You will simply need to fill up the application form and then get approved for the same.
5) The loan is easy to qualify
Getting a loan is the easiest when you are having good credit score. You will have no difficulty while applying for the loan.Instalment Loans;
3 reasons why you should not get an instalment loan
Now, you must be wondering that why should you not get an instalment loan? Let me tell you about the reasons why you should not get one:
This blog will tell you what are the advantages of the instalment loan. You will also know how it can help you if you apply for a loan.