How Healthy are Instalment Loans For Your Finances?

by Lauren Strom Content Writer

Instalment Loans
Financial stability is what every person desires. But regular encounters with uncertainties make us rely more on fund-sourcing. For managing expenses and debts efficiently, we need to understand how we can borrow money and utilise it in the best way possible.

There are many benefits which an instalment loan can offer you. These loans have flexible repayments. You can borrow money whenever you require and that too by applying online. With the recent developments in the credit market, online application for personal loans are gaining popularity.

In this article, you will know the reasons for the gradual shift of borrowers towards instalment loans.

ØThe Application Process is Quick & Easy

The entire process of applying for an instalment loan is very straightforward and easy. It won’t take much of your time. All you need to do is - provide income proof and fulfil the other criteria as per the lender. Make sure that you have all the necessary documents with you before starting the process.

ØHow Much Can You Borrow

The amount you can borrow through a loan is directly proportional to your income. Although factors like your credit record, credibility also influences the loan amount. Generally, instalment loans are suitable for more substantial amounts. You can explore several various deals offered by different lenders before finalising the deal.

ØEasy to Qualify Loans

Since you can apply for instalment loans online, qualifying for them has become relatively easier. If you have been turned down by bank or institutions, you can borrow from lenders available online. You can apply online at Oyster Loan - an FCA registered online broker, and explore reliable lenders suiting your preferences.

Note: The criteria for qualifying for any loan may vary from one lender to another.

ØFlexibility in Usage

Once your loan is approved, you can utilise the money in whichever way you want. It can be a car repair, home repair or even a holiday. In the case of instalment loans, lenders usually don't ask you about the purpose. The reason why many people opt for these loans during the financial crisis.

ØConvenience

Getting an instalment loan is more convenient than any other loan type. Since many lenders are offering these loans, these are widely available.

Are Instalment Loans taking over Payday Loans? Know the Benefits

Instalment loans last longer than the traditional payday advances. One of the reasons why Britain is experiencing this major shift of borrowers from one loan type to another. With instalment loans borrower pays a small amount every month as the loan spread is longer.

Payday loans, on the other hand, has to be paid in full on your next pay-cheque, generally. Ideally, credit products are meant to help people manage expenses during the financial crisis. So, as a borrower, you should opt for the option which is more convenient as per the situation.

Both of the above-mentioned loans are moderately costlier. Instalment loans have a range of products in term of tenure- for example, 12 Month Loans & 6-month loans. Payday Loans, on the contrary, are provided for 30 days or less. We can say that Instalment Loans in the UK are firming its grip over the lending market gradually.

However, payday loans are still available with various lenders who offer them for a period of 12 months - for people who want money instantly and for a longer tenure.