Installment Loans: What are the types?

Not all of us rich to have stacks of money in our bank accounts. Only a few handful numbers of people are lucky enough to roam around with so much cash. For middle-class people, the financial crisis is not a new thing. It can happen to anyone. If you are running short of money and need some urgent help, then installment loans could be the perfect option for you. In this post, we will tell you everything you need to know about installment loans.

What are installment loans?

Installment loans, as the name suggests, is a financial product that gives chance to individuals to borrow money and repay it over an extended period. This type of loan comes with a fixed interest rate. The main advantage of installment loans is that you can pay the amount back in small installments on scheduled dates.

This type of loan is helpful for those who are in urgent need of money. For example, if you are struggling to pay your car loan, then you can apply for an online installment loan. Your money will be transferred to your bank account within 24 hours.

Types of Instalment Loans

There are three types of installment loans available. Before you think of applying for an installment loan, you should know about the types.

Auto LoansAuto loans are the type of installment loans that are applied when you plan to buy a new car. The repayment duration of auto loans is between 12 and 96 months. Longer-term repayment loans come with a low amount of interest rate.

1. Mortgages

Mortgages are meant for people who want to buy a house. The duration for mortgages is between 15 and 30 years. This also comes with fixed interest rates.

2. Personal Loans

This type of loan can be used for various purposes. For example, paying off debts, sudden bills, etc. The duration for repayment is 12 to 96 months. The only thing is that they come with a higher interest rate.

Installment loans act as a saviour for people who needs money urgently but cannot repay it at once.