You may, at times, encounter bad financial times in your life. And in those times, an installment loan would appear as the only feasible option at hand to get things back on track – the way they were. An everyday man with a bad credit history finds an online installment loan as the only option to meet the financing needs and this type of financing tops over other types of debt financing due to its nature – the convenience factor.
What Is the Application Procedure?
The prospective borrower fills out an online application form available on the website of an online lending institution. The checklist needs to be completed before proceeding with other formalities. Once a prospective borrower tick marks all the requirements, the purpose of the loan needs to be mentioned along with the source of income and the income bracket. Some online lenders propose a custom loan amount calculated on the basis of the defined metrics, while others let you insert your desired amount of financing.
What Is The Repayment Structure?
The terms of repayment vary from case to case and the types of financing you avail. In an ideal situation, the following repayment structure is applicable to nearly all installment loan lenders:
Tenure: Between 3 months to 5 years;
Installment Channel: The bank account is debited on due dates. You may also get the option to pay your installments online via a credit card or payment application;
Repayment Intervals: The repayment frequency is determined before the sanctioning.
What Is the Cost of Borrowing an Installment Loan?
This depends as to how much you borrow. Typically, upon getting your loan application approved, a contract or an agreement is sent to you, which contains all the necessary details and terms & conditions. Look for the below costs in your loan contract carefully:
- Any fees that is imposed in lieu of approval process, late payment surcharge, and prepayment fine;
- The interest rate which is a flat % to be charged by the lender;
- The total amount you’ll be paying including the principal and the markup which is calculated through APR method.
Are You Eligible To Apply For An Online Installment Loan?
Individuals with a bad credit history or the ones who have a lower income bracket are the people who apply for Northcash installment loans. Usually, your prospective lender will keep a cross check of your income, employment history, and other necessary details to ensure timely repayments. However, the geographical location has a lot to do with installment loans. The state where you are living may not grant you the permission to avail this type of financing.
Why Are Installment Loans Termed ‘Bad Credit Alternatives’ to Short-Term loans?
The repayment mechanism of an installment loan being fragmented upon weekly or monthly installments make it by far the best available option to bad credit holders in contrast to short-term loans. It is also considered the best alternative to credit cards and is often used to repay credit card installments.
