What is an Instalment Loan?
If you are thinking about taking out a payday loan there could be many different reasons why you need the cash over a short period of time. Cashflow problems can hit any of us at any time, and quite often you know that you’ll only need a few days or weeks before your next payday comes around and you can pay back the loan in full. Sometimes however, there is a need to take out a slightly larger loan over a slightly longer period of time. Through a responsible payday loan lender you could borrow anything between £100 and £1,000 between 2-weeks and 5-months. If you would like more time to pay back a loan, over multiple payments, an instalment loan could be for you.
An instalment loan is a short-term loan that allows you to make monthly repayments. This is different to a payday loan, where you borrow a small amount of money with a view to paying back the full sum and interest in one single payment (usually within a few weeks of the loan being awarded). Instalment loans are usually anywhere between £100 and £1,000 and the full amount you can borrow will depend on your income and credit history. A lender will always take into full account your situation before committing to lending you money.
Before applying for an instalment loan make sure you sit down and work out exactly how much money you would like to borrow. The best payday loan lenders will have a website that has a sliding calculator that is simple to use. This will allow you to input the amount you would like to borrow, and the amount of time you would like to pay it back within. From there you’ll be shown a clear figure of interest for those specific parameters. You should also enquire with a prospective lender about whether or not you can pay off the loan early and if there are any related charges to that. This could differ from lender to lender so always be careful to gather as much information as possible before committing to any one payday loan provider over an instalment loan.
There are a range of new responsible payday loan lenders on the market that have raised the bar in terms of customer service within the payday loan sector. If you feel like you need a little bit more time to pay back a payday loan, an instalment loan allows you to take on board a larger sum of money over a longer period of time. Always be sure to borrow from a lender with a transparent process, allowing you to see exactly how much you will pay back, including interest based on the initial sum and the amount of time you would like to pay back the loan. The application process should always be smooth, transparent and flexible, with a payday loan service that provides you with expert advice and guidance should you require it, and a clear demonstration of all of your responsibilities in terms of paying back the instalment loan.