Benefits Offered by Taking Out an Installment Loan

Do you need additional funds for a purchase or repair? Would you just like to have a bit of disposable income? If so, there are several loan products for you to consider, but few offer the benefits of an installment loan.

Many people have never taken out installment loans in Canada, but the appealing benefits they offer should put them on your radar if you have financial needs. An installment loan is an amount of money that you must repay over a certain amount of time by making monthly payments. While there are alternatives to these, like payday loans, the benefits of the installment loan make them an appealing option. Keep reading to learn about the benefits of this lending product here.

Predictable Monthly Payments and Reliable Interest Rates

An installment loan will have fixed interest rates for the life of the entire loan. The fixed interest rates are an appealing option because you don’t have to worry about the interest rate going up. This means that you will know what has to be paid every month.

Lower Monthly Payments

Another appealing benefit offered by installment loans is that they are given for a long period of time. In most cases, if you have a loan with a longer amortization, like 10 to 15 years, then it means your payments are going to be much lower than with other loan products that you may be considered. This is especially the case if the other loan products are short-term loans.

Get Your Money Quickly

It won’t take more than two weeks (in most cases) to get your money from an installment loan. You can receive the money, in some cases, in as little as two days after you have filled out the application. The requirements for an installment loan aren’t very stringent, and most lenders don’t require you to produce too much documentation. What this means is that the processing time is relatively fast. You will receive a lump sum of cash right after the process is approved.

As you can see, there are more than a few benefits offered by an installment loan. If you need money but want low payments over a longer period of time, then it is a good idea to consider this type of loan, as it offers an array of benefits and will help you get the funds that you need without having to wait.