What are Instalment Loans?
It is a personal loan which can be borrowed for a period of up to 1 year. The loan has to be repaid with a
set number of scheduled payments as agreed by both the lender and the borrower. The monthly repayments
include principal and the interest amount – which has to be paid by the borrower. It offers flexibility and
convenience to borrowers who are looking to fund small expenses and need the money for a very short period
of time.
An instalment loan in the UK is manageable as a borrower do not have to repay the amount
in one go. Most of the lenders allow repayment in equal monthly instalment. That means a borrower knows how
much amount he has to pay the next month. This process will help the
borrowers to manage their personal finance efficiently without facing any adverse situation.
How Do Instalment Loans Work online in the UK?
The rates of interest offered on an instalment loan in the UK vary dramatically from lender to lender.
However, these loans are quite famous under the tag of High-cost Short-term Credit (HCSTC). The process of
applying for this credit product is not different from any other personal loan.
A borrower who has availed a loan has to repay the amount in affordable monthly instalments. People
generally borrow this loan to fund a big expense that may take up to a year for them to repay. It is
important to repay the amount though. Failure in repayments may severely damage your credit score. It is not
easy to borrow money with a damaged history and the rate of interest you will be offered will be quite
higher.
Instalment Loans UK and Poor credit score
Our situations are never under our control. Due to a delay in salary receipt or anything, you must have
missed the payment date of your bills which were due. This one single thing would have hurt your score. A
missed credit card payment would have resulted in a similar way. Therefore, at Oyster Loan, we understand
that a person’s finances cannot be determined only on the basis of a credit score.
The panel of lenders we deal with offer instalment loans for poor credit without impacting
your already damaged credit score. Though chances of approval on this kind of loan depends on the
affordability check. Before the final approval of the loan, lenders are required to perform a hard credit
check as mandated by the financial regulator (Financial Conduct Authority). The lenders will offer you a
soft quote initially with soft credit check– that will give you an overall idea of the rates that you will
be offered.
Also, borrowing a short-term loan may
recover your credit score, only if you repay the amount regularly – in full and on time. The improvement is
a gradual process and will take time, your efforts and patience to revive its current state.
Benefits of an Online Instalment Loan
It was quite difficult in the old days to arrange for a loan during emergencies. Now, with the revolution
in the lending industry and with the advancement in technology, everything is becoming much easier. There
are several benefits of borrowing an instalment loan are listed below:
- Flexibility
The flexibility it has in terms of repayment makes it the most opted credit product. A borrower
doesn’t have to repay in a lump sum and hence, they can easily plan their monthly
budget.
- Speed An emergency is unforeseen and can happen anytime. If you are not prepared for
it, then availing immediate funds become the ultimate goal of the hour. And if you do not have a perfect
credit history, it becomes more difficult. A borrower can easily apply for an Instalment loan even with
bad credit and if approved, a borrower can gain quick access to funds.
- Reliable
Oyster Loan deals with FCA licensed lenders only. Hence, you can be assured of transparency and business
ethics. Moreover, the rate of interest they offer is fixed. That means there are no chances of any
increase in the amount of monthly repayment during the tenue. You will pay the same monthly amount
throughout the tenure.
- No Collateral A borrower doesn’t have to pledge any of their valuable asset or
property as collateral while applying for the loan. That means there is no associated risk
of collateral damage.
How to Apply for an Instalment Loan Online?
Oyster Loan has designed an easy application process for the ease of borrowers so that they can gain quick
access to funds during emergencies, without wasting any time. You can apply for an instalment loan online in
3 easy steps with us:
- Application Form: Fill in the application form online with necessary details about
yourself, employment and residential status, and financial information.
- Submit: Once you’re done with the 3-minute form, submit it online so that our
lenders can start their process of assessment and verification.
- Decision: The decision of the lenders will be displayed on the screen and all this
happens within a few minutes.
Please note that we offer instalment loans without guarantor. A borrower doesn’t have to arrange for
a co-signor to avail a loan with us.
Pay in Easy, Flexible Repayments – With Oyster Loan
Oyster Loan is an FCA authorised credit broker operating across all the major cities of the United Kingdom.
All the lenders that we deal with are also licensed by the FCA to maintain standard industry practices. We
offer a wide variety of short-term and personal
loans and ensure responsible lending to protect borrowers from any unethical business practice.
We do not charge any upfront fees or arrangement fees. Moreover, borrowers opting for an instalment loan
with us have the chance to protect their credit score while initial loan eligibility assessment. Our
personal loans are designed to meet the borrower’s criteria during financial emergencies with a simple
application process.
Borrow an Instalment loan online today and repay in easy and flexible monthly
instalments.