What are Installment Loans?
An installment loan is one of the smartest financial plans that will help you borrow needed funds, typically for some important purchases like buying a car, house, go on a vacation or sponsoring college education. After getting approved by a lender, the borrower receives the desired funds repaid over a set term in a number of small and equal installments.
How do installment loans work?
Installment loans are the most easiest and popular form of financing in Canada. This can be a great option for a number of purposes. Such loans are easy to apply online in Canada. You don’t need to wait in long queues to complete the application process. You can collect and compare loan quotations from number of reputed and legitimate Canadian lenders and find the one for you at a best possible rate. Once you are approved for a loan, funds will be directly deposited to your bank account.
What installment loans can be used for?
You can take out installment loans to fulfill varied number of financial purposes such as paying overdue bills, handling any medical emergency, pay for wedding expenses, consolidating debt, make a travel plan or making any purchase.
How Payday Tree can help me find a best installment loan deal?
At our website you can easily find a list of reputable companies that offer installment loans in Canada, in just few clicks of mouse. Browse our site pages and compare your installment loan options, including products offered, interest rates, terms, qualifications and even reviews from other customers.
What are the benefits and drawbacks of installment loans?Benefits
- Predictable monthly payments
- Fixed interest rate
- Higher credit limits
- Lack of flexibility
- Higher rates than on revolving credit lines
How to apply
Once you have figured out the lender of your choice, simply hit “Apply Now” next to the installment loan lender. You will be then redirected to their website where you need to complete the online loan application. At Payday Tree we will help you find a right lender, suiting your situation. The potential lenders will reach out to you to process your loan request within 24-48 hours.
How one can qualify for an online installment loan?
When you consider applying for an installment loan, you may find most lenders will typically ask for the same basic requirements for you to qualify for a loan. This includes:Proof of income
You must be doing a regular job and have a steady income to qualify for a loanBank account
One of the most important criteria to become eligible for a loan is to have a valid active bank account in your name for direct supply of funds.Age verification
In most provinces and territories of Canada, the minimum age of receiving an installment loan is 18 years.Canadian citizenship or permanent residency
Installment loans are typically extended to those people who have Canadian citizenship or permanent residency.Identity proof
For receiving an installment loan, candidates must provide their valid contact number and email address for further communication with the lender.
Are installment loans available to people with poor credit?
These types of loans are available to all types of customers including those with unpleasant credit score as long as they show their present ability to repay the principal and interest amounts.
What is so special about an online installment loan?
Such kind of loan is much faster to obtain than other forms of personal loans. The online nature makes the loan process quicker, easier and efficient. Once your loan is approved, funds can be received directly into your bank account as soon as the next business day. Another major point of installment loans being so popular among Canadians is because of its flexible repayment. Unlike payday loans which are supposed to be paid back at borrower’s next payday, the installment loans are structured more like personal loans in that regard. They allow the borrower to select the loan term and even the repayment frequency that is weekly, monthly etc.
What is the difference between a payday loan and installment loan?
Payday loans are different from other type of loans as the repayment process of these loans is different from other traditional loans. Payday loans are small and short-term where repayment term is typically expected on the borrower’s next payroll. Installment loans are more diverse with flexible repayment term over a longer span of time. An installment loan can involve monthly repayments over a term that can take few months to years. Payday loans are generally offered for a period of two to four weeks.
Get I get an installment loan with no credit check?
No, it is not possible to get a loan without a credit check. Those who do not have any credit history yet don’t mean they cannot get an installment loan. They can able to get the loan according to their present financial stability and their ability to repay the loan. However, you should take time to compare installment loan lenders to find the best rate available.
How much an installment loan cost?
Installment loans come with a range of different interest rates by different lenders. The rates you get will depend on your credit score and the type of lender you choose. It is little hard to get installment loans banks, but they may offer interest rates of under 4% to the most qualified borrowers. Bank installment loan interest rates typically range from 4%-7%. If you need faster approval, Canadian alternative lenders offer a wider range of interest rates. Typical installment loan interest rates range from about 6%-13% in Canada, assuming you have an average or higher credit score. On the other hand, bad credit installment loans have the widest range of interest rates.