Characteristic features of the installment loan are – as the name implies – the installments, which must be paid in each month in the same amount and consist of amortization and an interest portion. Many types of loans are given as installment loans, such a loan can be applied for in different amounts. The branch banks issue installment loans, but the conditions are usually more favorable for the direct banks, which offer their services online and are characterized by particularly low-interest rates, as they do not operate branches and thus save costs. For a variety of purposes, an installment loan can be applied for, the terms vary, depending on the type of loan, the loan amount and the term and the creditworthiness of the applicant. Anyone who wants to apply for an installment loan on favorable terms should definitely use the possibility of comparison on the Internet.
An installment loan is a loan that is repaid “in equal monthly installments”, that is the installment loan definition.
The monthly installments include the interest portion, the repayment amount and the possible fees, the fees are paid with the interest.
In most cases, the installment loan is an annuity loan, which means that at the beginning of the repayment, the interest portion of the installments outweighs and the ratio shifts towards the end of the repayment, with the repayment installment making up the largest part of the installments. The amount of installments always remains unchanged. The amount of the interest is fixed at the time of the contract, the debit interest remains unchanged during the entire repayment term.
Book your online installment loan now
If you need an installment loan very quickly and you want to benefit from favorable interest rates, you can apply for the installment loan online via https://purplepaydayloans.com/installment-loans/ site. The online installment loan is requested in a few steps, you fill out the application form with loan amount and term and provide personal information, income, and monthly expenses. The application is sent by mouse click, often one receives a short time later an answer.
If all prerequisites for the installment loan exist, a favorable installment loan can be paid out soon. The applicant will print out the loan application and sign it in order to submit it to the bank together with proof of income and bank statements. If the applicant has the appropriate credit rating, the installment loan will be paid out within a few days.
The installment loan for different purposes
For a variety of purposes, an installment loan can be applied for:
- buying a car
- Modernization or renovation of apartment or house
- Various smaller purchases such as TV, washing machine or PC
- Small loan to bridge financial bottlenecks
- Rescheduling an existing loan
- Replacement of several small loans
- Instant loan for urgent purposes
- As a start-up loan for the start of self-employment
- Construction loan or real estate loan
Depending on the type of loan, the installment loan can be granted with various sums, commonly loan amounts ranging from € 1,000 to € 100,000, but above all building loans or real estate loans can also be granted at higher sums. The term for an installment loan, depending on the loan amount, is 12 to 120 months. For construction or real estate loans, however, the terms can be significantly higher.
Thoroughly plan an installment loan
Who wants to take an installment loan, must plan him thoroughly; This includes first paying attention to the number of installments. The amount of the installment depends on the loan amount and the term, but the amount of interest also plays a role. Interest rates vary by bank, and many banks set interest rates depending on the applicant’s credit rating to protect against default. The installment loan calculator on the Internet is cross-bank, it allows the planning by specifying the key data for the installment loan. Based on the loan amount, the term and the average market interest rates, the rates are displayed.
With the installment credit calculator, you can play through several variants for the installment loan , in order to finally find the most favorable monthly rates for the personal case. To ensure that the monthly financial burden is manageable and that there is still enough money left over for all important expenses, it is important to have an appropriate rate of installment.
Tip: It can, therefore, be useful to choose a longer-term for the installment loan in favor of lower rates, even if the interest rates can be slightly higher
Find a cheap installment loan
A cheap installment loan can be found with the installment credit comparison on the Internet, which is available free of charge on various portals. With the installment credit comparison, you can calculate the installment loan by specifying the loan amount, repayment term and intended use. The comparison informs about the number of monthly installments, the APR and the borrowing rate.
The annual percentage rate is slightly higher than the borrowing rate, as it includes processing fees. The installment loan interest rates are levied on many banks regardless of the creditworthiness of the applicant, especially for smaller loans, but some banks set the interest rates depending on the credit rating. Therefore, it can happen that the interest rates increase at the conclusion of the contract if the applicant has an unfavorable credit rating.
The settlement provides information about the banks for which the installment loan can be applied for. For many banks valuations of independent institutes (such as TÜV or Stiftung Warentest) are available, also customer reviews can facilitate the selection of a bank for the installment loan.
Conclusion: The most important thing about installment credit at a glance
- The installment loan incurs monthly installments. This includes interest, redemption and any fees.
- An installment loan can be requested for a variety of uses.
- The usual loan amount is between 1,000 and 100,000 euros and the duration is usually 12 to 120 months. Higher sums and longer maturities are common in construction loans.
- For the cheapest installment loan, you can use online comparisons. One should pay attention to independent reviews and customer opinions.
- Banks check their own creditworthiness very closely; So you should be solvent and have collateral.
- Those who need an installment loan very quickly should contact so-called direct banks and apply for the loan online.