What are the characteristics of installment loans?
A loan is a financial product that is made available by various institutions. We will find it in the offer of banks, credit unions and loan companies. Also when parents or siblings or someone from a group of friends lend us money or things, we are dealing formally with a loan. Its definition can be found in the provisions of the Civil Code.
Article 720 of the Civil Code stipulates that “through a loan agreement, the lender undertakes to transfer the ownership of the recipient a certain amount of money or items marked only as to the species, and the recipient undertakes to return the same amount of money or the same amount of items of the same species and same quality. “
Loans can be repaid in any mode usually agreed between the parties. If the loan is granted for an amount exceeding one thousand zlotys, according to the law its contract should be concluded in writing (in documentary form).
Usually we use loans in loan companies. These can be both quick installment loans and loans repaid on a one-off basis. Installment repayment of financial liability allows for convenient fulfillment of it. The loan installment does not burden the borrower’s budget as much as a one-off repayment after the end of the contract period.
An installment loan is becoming an increasingly popular financial solution. It can be said that this is actually a standard cash loan that can be granted by a bank or a non-bank institution.
Interestingly, cheap installment loans are even available online – so you do not need to make direct contact with the lender to be able to conclude a loan agreement for monthly installments, get it to your bank account, and then pay the installments by transfer. The essence of the installment loan is that the debt is repaid in the principal and interest installments specified in the contract.
Installment loans are not much different from one-time cash loans. After the loan is taken, an agreement is signed with the repayment schedule. The installment loan is not necessarily paid monthly. The borrower can also pay them back on a weekly basis.
Who are installment loans for?
The offer of financial institutions offering quick installment loans is addressed to people who want to spread the repayment of their liabilities in such a way that it does not burden their budget too much.
All you have to do is meet small requirements and formalities to get a installment loan. As in the case of standard cash loans provided by non-bank companies, cheap installment loans are intended for people who:
- are of legal age – although some lenders require the client to be at least 21-23 years old;
- have full legal capacity, unlimited;
- are not entered in the register of debtors, inter alia BIG, KRD or ERIF;
- have a bank account registered in their own name;
- have their own cell phone;
- have a stable and stable source of income.
In principle, lenders have the freedom to shape their loan policy and determine the conditions under which installment loans are available. That is why in some cases it can be encountered that the conditions set for borrowers relate to the minimum and maximum age. Often, quick installment loans are not granted to persons who:
- have negative entries in the Credit Information Bureau (as long as the loan company checks the BIK when verifying the creditworthiness of the customer),
- are unemployed and have no regular income.
It is always worth submitting an installment loan application to a selected loan company, because the receipt of such a commitment always depends on the individual assessment of the potential client’s creditworthiness and creditworthiness.
How are installment loans taken out?
The process of applying for installment loans is the same as for customers applying for standard payday loans. So you must first find a company where a quick installment loan will be the best offer for us and submit a loan application. Installment loans are also granted online, which is why you can complete the application without leaving your home.
When it is completed, it will be time to verify the borrower’s identity. Most often it is done in such a way that a cheap installment loan can be paid only after making a symbolic transfer of USD 1 from the client’s account to the account of the loan company. Lenders also check customer data in available databases. If everything is OK, the installment loan is paid to the customer’s bank account.
Can an installment loan be free?
Free cash loans are very popular on the non-bank financial market. These obligations are addressed only to persons who have never before used a loan company in a given loan company. Instant cash for USD 0 will remain free if it is repaid on the date indicated in the loan agreement.
However, is it possible to take quick installment loans on similar terms? Is the cheapest installment loan a free liability? Of course, as evidenced by the numerous offers from loan companies. Free installment loans are not a marketing ploy, but a real proposition that has no costs.
As in the case of traditional loans, a quick installment loan will remain free and its APRC (annual real interest rate) will be 0% if the customer has never incurred liabilities in a given loan company and will repay the loan installments on time. Taking advantage of such an offer allows you to test low-cost installment loans without exposing yourself to costs.