Instalment Loans

6 Benefits of an Instalment Loan

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Majority of us are not lucky enough to have a pile of cash with us during a financial crisis. Unplanned and unexpected expenses may catch us off guard when we do not have sufficient funds to resolve the immediate necessities. If you do not have an emergency fund it becomes difficult to handle the abrupt expenditures along with the regular household expenses. Gone are those days when you had to struggle for finances in mid-month without finding any concrete resolution. With the advancement in technology, the financial services sector started filling this gap as many credit providers and brokers started offering Online Instalment Loans. And more and more Britons started opting for this form of borrowing due to enhanced ease and convenience.

Key Takeaways of this Blog:

What is an instalment loan?

An instalment loan is a type of personal loan that can be borrowed without pledging any security. There are two types of instalment loans – short-term and long-term. If you need a loan for 12 months or less, you may opt for a Short-term Instalment Loan and if you need a loan for more than a year, you must consider a long-term instalment loan which is also called as Personal Loan in the UK. Also, you do not need any guarantor to co-sign the loan application with you while applying for the loan.

How does it work?

All you have to do is to choose the product and pick out a lender or credit provider who offer such loans. Visit their website and apply online by submitting the application form all at the comfort of your home

You can also apply for the loan at Oyster Loan- A loan broker in the UK. When filling out the loan application form – you have to enter the loan amount that you need, how long will it take for the repayment and a few other necessary details such as employment status, monthly and annual income, residential address, etc., All these information will be verified by the lender and an assessment will be conducted to check your loan eligibility. The decision of the lender will be displayed on screen once the process is over and generally, it doesn’t take much time. Within a matter of a few seconds to minutes, the decision is provided by the lender. That means you do not have to wait for days at end for the decision.

If your loan application is approved by the lender, the amount will be transferred to your bank account by the lender within a few minutes. However, the disbursal time also depends on your bank. Therefore, it is recommended that you must read the Terms & Conditions offered by the lender thoroughly before signing on the dotted line.

The repayment cost of the loan can be spread over several months and you have to make timely repayment to avoid spoiling your credit score. If you fail to make repayments on time and in full, your credit score may be damaged and this will restrict you from borrowing money in the future, for up to six years.

6 benefits of using an online instalment loan

#1 Quick Availability

To treat any financial crisis you need money instantly and Instalment Loans in the UK are real quick. Mostly, lenders disburse the loan amount to your bank account within an hour if approved. However, the time frame also depends on your bank and the lender. The application process is carried out online and hence, doesn’t take much time.

#2 Spending Freedom

As a borrower, you have the complete freedom of spending the received funds for almost any purpose. You can use the money to consolidate your debts, you can use it to fund your weekend getaway or you can use the money to manage the shortfall in your wedding expenses.

#3 Predictable Monthly Repayments

Some lenders may offer you a variable rate of interest and some may offer you a fixed rate of interest. Always opt for a fixed rate of interest as with that you can easily predict how much you have to keep aside every month for the repayments. This will help you in managing your monthly budget.

#4 Boosts your Credit Score

Once you start repaying the loan on time and in full – your credit score will gradually improve. It may not happen overnight as the process takes time. Your lender will send a report to the Credit Reference Agencies about your repayment behaviour and on the basis of that, your credit score will improve.

#5 Convenient

As you can opt for these loans online – you can apply for it from the comfort of your home. You do not have to fix an appointment and wait for hours and days, in the end, to discuss your financial circumstances with a lender to avail the loan.

#6 Minimal Documentation

The process of application doesn’t need many documents to approve your loan application. Lenders may need a few essential documents such as – documents to prove your identity, income, tax returns details, bank statements, and employment status. All these have to be submitted online, so you do not have to go through much trouble to apply for a loan online.

Conclusion

Long-term instalment loans can be taken out by the borrower for a period ranging from one year to seven years. Depending on your financial needs and circumstances, you need to decide what type of loan you require and what exactly you can afford. Because affordability matters a lot whenever you are considering taking out a loan of any form. You need to have a clear strategy for the repayment of the loan or else your credit score will be completely damaged and rebuilding a credit score takes time.

To apply for an online instalment loan with us, click here.

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