With the right installment loan, your dreams will come true. Whether you need a small loan or would like to take out a larger loan amount: Modern installment loans are very flexible, quickly available and also score with the loan interest.
As an online loan, he knows how to convince with attractive terms and a quick loan approval. Some banks even allow installment loans with annual interest rates that are independent of creditworthiness.
But the choice is huge, never before have so many banks offered loans. Therefore, borrowing should not be done without prior comparison. On this page we explain what financing options are available and what is important when comparing interest rates. Our loan calculator is a powerful tool to help you find a loan with a low borrowing rate.
Why installment loans are a good decision
There are still numerous consumers who finance car purchases, holidays and many other expenses with their overdraft facility. As a result, they accept extremely high lending rates. It would almost always be better to use an online loan. We have explained the decisive advantages for the applicant below.
Low loan interest
The interest rate difference is huge with the borrowing rate. It is not uncommon to reduce interest costs by more than half compared to the overdraft facility. This results in a large saving, which can amount to a few hundred dollars for medium loan amounts.
It is not that easy to balance the current account’s negative balance. The mere resolution often does not lead to the goal. If, on the other hand, monthly installments are to be paid, a constant and therefore targeted repayment of the remaining debt is certain. The rate can be set so that the debt rescheduling is effortless.
Easy to apply
The credit market has changed a lot, the direct banks have literally turned it upside down. Never before has a loan application been made so quickly. The loan can be applied for within a few minutes and applicants often find out immediately whether it is possible to finance it. The loan agreement comes about quickly and the loan amount is paid out quickly.
This is how the installment loan works
After the loan has been approved, the bank initiates the payment. The entire loan amount is paid in one payment to the borrower’s account. It usually only takes one to two working days from approval to receipt of money in the account.
With most loans, repayment begins around the middle or end of the next month. However, there are also installment loans that allow a later start of repayment. The repayment is made in monthly loan installments, which always amount to the same amount. Almost every loan agreement is designed in such a way that the term is always designed for whole years, ie depending on the selected loan duration, for example, 12, 24 or 36 monthly installments are to be paid.
Loan options in detail
Some financial institutions do not only offer a classic installment loan with free use. Some special loans are now also available. Here is an overview of the financing options.
Credit for free use
The classic installment loan that does not have a purpose limitation. The borrower decides on the use of the loan amount and is not accountable to anyone. The most common funding purposes are:
- Education (advanced training, study)
- Health (cosmetic surgery, dentures, etc.)
- Consumer electronics
The majority of all new vehicles are financed today. Due to the high demand, banks have often developed additional installment loans to finance vehicles. They have a fixed purpose and are optimally tailored to the needs of car buyers. Because the car has a corresponding countervalue and thus forms good security, even better conditions sometimes lure. The repayment will be made in full, at the end of the term there will be no residual debt thanks to the continuous repayment.
Make debt restructuring and achieve an interest advantage thanks to lower annual interest rates. Expensive loans are replaced by cheap financing in order to reduce interest costs. Likewise, several existing loans can be redeemed and combined into a new loan, which results in a better overview. Here we have gathered detailed information about the debt restructuring.
At most banks, installment loans are only available from a loan amount of around 2,000 to 2,500 dollars. Some institutes issue small loans that are already starting. 1,000 dollars are available. The interest can be credit-dependent and credit-independent. Even here, a credit comparison is recommended because it promises to save.
Installment loan comparison
Do the interest rate comparison. You determine the loan amount and term, we calculate the interest for your installment loan from many loan offers.