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What Are Installment Loans?

It is the loan where you have to make the repayment in schedule payment. There will be a specific time where you have to pay some amount of borrowed money. Those repayment periods will be decided by the lender or loan providers.

Most of the direct lender, like Extra mile Finance in the UK, provides funds to bad credit people with no guarantor for a period of 6 months to 5 years. However, it depends on the borrowing amount.

There are several types of installment loans. Let’s have a look at them.

  • 1. Auto Loans
  • 2. Students Loans
  • 3. Personal Loans

These categories depend on the type of loans. And each loan has a different purpose, and you can avail them according to the situation’s need.

How Do Installment Loans Work?

Installment loans consider the principal amount and interest rate. Whatever the total amount is, it will be divided into time that is predetermined by the loan providers. And, now you have to pay them monthly or weekly.

In most of the scenario, the lender takes it monthly rather than weekly. Many such situations occur where individual fail to repay the money on time. But, it is the benefit of installment loans with no credit check, that you can talk to the Direct lender in the UK, and flexible the time or pay it later.

In this way, you can save your credit score from becoming affected.

Now, let’s see there is some misconception that people believes. It is imperative to clear them first.

Which Statement About Installment Loans Is Not True?

There are majorly three statements that confuse most of the people.

  • Down-Payment is necessary
  • The interest rate paid first
  • Hamper the financial life

We have shown a detailed study about them below:

A Down Payment Is Necessary

It is one of the most common false statements. You do not have to pay any down payment. Though, the lender asks for certain things, like:

If you have anyone among them, then you can quickly get the approval.

The Interest Rate Paid First

There is no such loan exist where you have to pay interest first. So, overlook such myths, and if someone tries to trick you, then you should leave that lender. Try to approach the authentic one that can help you instead of putting you into more problems.

Hamper the Financial Life

There are certain kinds of debts that affect the money life that is known as “Bad-Debts”. But, the installment is not belonging to this category. Against the statement, it will help you to improve finance, and aid to gain financial stability.

How to Calculate Interest on Installment Loans

Calculating the interest rate is not tricky; you can easily estimate the rough value of the loan cost. All you have to follow a formula mentioned below:

[P x R x (1+R) ^N]/ (1+R) N-1]

Here, P = Loan amount

R = Interest rate/month

N = Number of monthly installment

You can use this formula to find the total loan cost.

It is how you can calculate the installment cost. Though, if you find it hard to count, then you can take assistance with calculator available on the online lenders’ website.

We hope that this blog has cleared all the doubts, and helps you to make a better financial decision. Though, before accessing this option, make sure that you need it urgently. Taking decision blindly may introduce unnecessary debts.

So, what stops you? Go and use an installment loan to manage all the money problems.

Installment Loans: What Makes It A Key Solution For The Money Hitch?

Life is full of challenges and obstacles; some remains for short or some stays for a more extended period. The truth is that you cannot run away from it; everyone has to manage it with different methods.

Most of the people choose to break the emergency or saving funds. But do you think that cutting funds can aid you for a more extended period?

Several financial advisors do not recommend losing the funds in this way. It should be utilised to fulfil future expenses or dreams. Now, the question arises is that what options you should choose to deal with both small and large expenditures?

To cope with such situation installment loans with no guarantor and no credit check could be a perfect choice. You might have heard about it numerous times. But, still many people confuse while opting instalment because of some doubts.

Let’s clear them, and understand everything about it.

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