In-depth guide to Instalment Loans
- 5 years ago
This video explains what instalment loans are and why they could be a good alternative to a payday loan.
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▶️ ON OUR WEBSITE & "MONEY MATTERS" BLOG
- Instalment Loans: https://www.solution-loans.co.uk/instalment-loans/
- Compare lenders: https://www.solution-loans.co.uk/instalment-loans/compare-lenders/
- Why people will always need short term loans: https://www.solution-loans.co.uk/blog/people-will-always-need-short-term-loans/
- A clear and honest approach to short term lending: https://www.solution-loans.co.uk/blog/clear-honest-approach-short-term-lending/
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▶️ VIDEO TRANSCRIPT
Instalment loans offer more breathing space than payday loans for those who need to borrow money quickly but want to be able to repay it over more than a month and to budget for it. They are generally cheaper than payday loans but the interest rates charged are still substantially higher than those offered with more traditional forms of lending like unsecured loans and overdrafts.
The Financial Conduct Authority (FCA) has curbed the amount of interest that payday lenders are allowed to charge and this led to a significant fall in the number of such loans and, therefore, a growth in the number of instalment loans.
While a payday loan gives somebody the opportunity to borrow a small amount of cash with a single repayment date the following month, an instalment loan spreads those repayments over several months - typically between three and twelve.
The amounts available to borrow typically range from £100 to £2,000. As with more traditional forms of credit, instalment lenders will look at your ability to repay, credit history, income and other personal circumstances. These checks tend to be a little more stringent than those that come with payday lending.
If you need to borrow a relatively small amount (up to £2,000) but won’t be able to make a full repayment within 30 to 45 days, then an instalment loan could be for you. It allows you to spread the repayments over several months, giving you breathing space to clear the loan or the means of plugging a financial hole while you earn enough to repay it over a fixed period of time.
The principal of an instalment loan is similar to a traditional unsecured loan except that the timescales for repayment are much shorter and the interest rates charged much higher. While unsecured loans usually have repayment periods of between one and five years, instalment loans give you up to twelve months to repay the advance plus interest charges.
While the total amount to repay is significantly higher than an unsecured loan, an instalment loan could suit you if you only want to borrow a small amount of money.
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▶️ ON OUR WEBSITE & "MONEY MATTERS" BLOG
- Instalment Loans: https://www.solution-loans.co.uk/instalment-loans/
- Compare lenders: https://www.solution-loans.co.uk/instalment-loans/compare-lenders/
- Why people will always need short term loans: https://www.solution-loans.co.uk/blog/people-will-always-need-short-term-loans/
- A clear and honest approach to short term lending: https://www.solution-loans.co.uk/blog/clear-honest-approach-short-term-lending/
------
▶️ SOCIAL
Like us on Facebook: https://www.facebook.com/SolutionLoanUK
Follow us on Twitter: https://twitter.com/solutionloansuk
Follow us on Instagram: https://www.instagram.com/solutionloans/
Website: https://www.solution-loans.co.uk/
Subscribe to our YouTube channel: http://bit.ly/solutionloansYT
------
▶️ VIDEO TRANSCRIPT
Instalment loans offer more breathing space than payday loans for those who need to borrow money quickly but want to be able to repay it over more than a month and to budget for it. They are generally cheaper than payday loans but the interest rates charged are still substantially higher than those offered with more traditional forms of lending like unsecured loans and overdrafts.
The Financial Conduct Authority (FCA) has curbed the amount of interest that payday lenders are allowed to charge and this led to a significant fall in the number of such loans and, therefore, a growth in the number of instalment loans.
While a payday loan gives somebody the opportunity to borrow a small amount of cash with a single repayment date the following month, an instalment loan spreads those repayments over several months - typically between three and twelve.
The amounts available to borrow typically range from £100 to £2,000. As with more traditional forms of credit, instalment lenders will look at your ability to repay, credit history, income and other personal circumstances. These checks tend to be a little more stringent than those that come with payday lending.
If you need to borrow a relatively small amount (up to £2,000) but won’t be able to make a full repayment within 30 to 45 days, then an instalment loan could be for you. It allows you to spread the repayments over several months, giving you breathing space to clear the loan or the means of plugging a financial hole while you earn enough to repay it over a fixed period of time.
The principal of an instalment loan is similar to a traditional unsecured loan except that the timescales for repayment are much shorter and the interest rates charged much higher. While unsecured loans usually have repayment periods of between one and five years, instalment loans give you up to twelve months to repay the advance plus interest charges.
While the total amount to repay is significantly higher than an unsecured loan, an instalment loan could suit you if you only want to borrow a small amount of money.