Internet loans on installments

May 14, 2019 Finance

Internet loans on installments

We have plenty of ways to raise money online. The best known are, of course, the cash loans offered by all banks. We also have credit cards and account limits available on the market. However, all these products have one disadvantage. In order to obtain them, we must have sufficient creditworthiness. In other words, we must have stable employment and adequate incomes. Online loans on installments come with help. This is an excellent alternative for customers without sufficient creditworthiness.
Types of loans on the Internet
There are different types of loans over the internet. In principle, we can omit traditional cash loans, as they are governed by a completely different law than loans and temporary loans. Loans can be divided into those granted by loan companies, i.e. parabangs, and by individuals through special websites. They are called social loans. In the case of loan companies we can talk about installment loans, such as in the title of this article and the so-called moments granted for a short period of time. They are characterized by the fact that the borrowed amount must be repaid in one installment before the payment deadline. It usually lasts from 5 to 45 or 60 days.
Online loan on installments or one-time loan?
The way you choose to lend a loan depends on whether you have the funds to repay it. If you know that within a month you will have enough cash, it is worth considering the option of a quick moment’s notice. Surely we will pay less interest and maybe we will come across a promotional, free offer. If we already know that in the near future we will not have the funds to pay off the loan in full, we should consider the option of a installment loan repaid over several months or a year. Because of the high APR, we will pay a little more, but we will pay the whole thing in convenient installments.
Terms and conditions of obtaining a loan
In order to obtain a loan from one of the many online loan companies, we will not have to meet any special requirements. The whole process is as simple as possible and therefore the loans are available to a wide range of customers. Some loan companies will not even check our history in the office and will not require the presentation of any certificates of earnings or employment. To grant a small loan, all you need is a valid ID card, all your details, a verification transfer from the bank account registered to our details and acceptance of the agreement. Everything takes several minutes and on the same day we can dispose of the funds coming from the loan. This is a big advantage over bank loans, where the whole process takes much longer and requires the presentation of various certificates and a positive history in the office.
How much do online loans cost?
Unfortunately, Internet loans are quite expensive to pay off. Their cost is expressed in the Annual percentage rate value, well known from the comparison of bank loans. However, in the case of banks it is about 15%. In the case of loan companies it can already grow to several hundred percent. The difference is, as you can see, quite significant. This is a result of a less restrictive approach to lending. We are not thoroughly checked, we do not need to bring additional security and so in the eyes of the lending company there is a risk that we will not pay off the debt on time or not pay it at all. Therefore, we have to pay more for the loan. It is also a kind of punishment for lack of creditworthiness. If we had one, we would have easily received a loan from a bank on convenient, much better terms than an online loan.
Comparison of loans
In order to find the best loan offer for us at a given moment it is not worth to check in turn what all loan companies have to offer. It is much more sensible to use one of the many loan comparison engines, which are often conducted in the form of rankings. They gather in one place all the attractive offers of loan companies and suggest the cheapest ones. In some cases, we also have the opportunity to enter the amount we intend to apply for and the system will check for itself which offer will be the best for us. It will offer us either convenient installment loans or promotional momentary loans, which we will have to repay in one installment within 30 or 60 days. Which offer we choose will depend only on us and our financial capabilities. After choosing a particular company we will go to its website where we will be able to fill in a loan application and check the conditions of receiving a loan.