An installment loan is an optimal solution for people who want to pay their financial liabilities regularly, every month. This is a much more convenient form of settling liabilities than paying off the entire loan immediately, as is the case with payday loans, e.g. with a 30-day repayment period. The installment of the loan can be set at such an amount that it will not be too heavy for the household budget.
The cost of the loan will be higher for loan companies, which is however offset by a more flexible loan granting procedure. In this article, you will find out what formalities should be met to get a loan, what are its costs and what are the monthly installments. We invite you to read.
Installment loans no credit check: rush in today
The installment loan no credit check through https://www.mandello.org/installment-loans-no-credit-check/ ideally meets the needs of people who wanted to raise additional cash and repay the liability in monthly installments. Distribution of repayment into installments of an acceptable amount means that we can regulate them in a timely manner without seriously harming the household budget. An installment loan is available from banks and loan companies.
Relatively the cheapest form of the loan is offered on promotional terms, the so-called first free payday loans. If certain conditions are met – primarily timely repayment – these loans are completely free. However, the installment loan is already burdened with costs, both in loan companies and in banks.
An installment loan is characterized by the fact that we pay it back regularly in monthly installments. Loan installments can be decreasing and equal. What is the distinction? In the case of equal installments, all is clear, we pay the same installment throughout the loan repayment period. The situation is different when we pay decreasing installments. As the name suggests, this type of installment is becoming smaller over time. Why is this happening? The installment consists of a fixed part and interest. And interest is charged on the outstanding capital. Over time, it is smaller and smaller, which is why the installment is shrinking.
Loan interest rate and other costs
What are the costs of taking out a loan? The cost of the loan is mainly influenced by interest, which is part of the monthly installment. The amount of interest depends on the nominal interest rate. The interest rate is provided by the banks on an annual basis. It may not exceed four times the lombard rate. This, in turn, is determined by the National Bank of Poland. Of course, interest is not everything that we have to take into account when taking a loan. Both the bank and the loan company will also probably charge a commission on granting the loan. A preparation fee is also possible, which can also be an important cost element.
Requirements and formalities
Loan formalities can now be dealt with online. Comfortable, without leaving home, at the computer – it is an ideal opportunity for people who value their time. Of course, you can always approach a bank branch or a loan company. But this is already an option for amateurs of this way of completing all formalities. To receive a loan, you must first fill out an application in which we provide our personal data, and basic information about employment, earnings, number of dependents, or our other financial obligations. The application stage is similar to both loan companies and banks. The differences arise in the case of borrowers’ requirements. loan companies are more flexible when it comes to assessing borrowers’ creditworthiness. Here people with low earnings, indebted and late repayment of other loans have a chance to get a loan. In banks, the bar is suspended much higher. You need to earn properly and have a good credit history at BIK.
Paying back the loan in monthly installments seems very convenient and safe. However, it may happen that our financial liquidity is disturbed by some unforeseen expenses and we run out of funds to cover financial obligations. What to do in this situation? First of all, we need to be aware that unreliable borrowers can be punished by the bank in such a way that information about late repayment of the loan will go to the BIK database. And of course, interest is charged for every day late. It is worth contacting the bank and presenting the situation. The bank may even propose to restructure the loan in order to reduce the installment amount or propose a loan holiday.