Instalment loans and the process of applying
Instalment loans have become a popular borrowing resource amongst consumers who need to borrow a small sum of money. Like their larger and longer standing counterparts such as traditional Hire Purchase loans and Credit Card borrowing, instalments loan allow consumers the ability to repay in a manner which is designed to be realistic and affordable. Instalment loans in the context of this discussion are short term loans which are applied for via the means of an online based application form. These loans by their very nature are designed to allow consumers access to small loans in a manner which is simple and straight forward whilst maintaining responsible and fair lending practices. Instalment loans have enabled consumers the ability to borrow a small sum of money without the need to automatically repay the amount on a lump sum basis. In our modern day society consumers are well adapted to making monthly based instalments for the goods and services they desire and as such, are understanding of how such agreements generally work. Take for example the purchase of furniture for the home, making suppliers now offer the capability to make repayments on a monthly basis having already delivered the desired goods. Today we will be looking at the process of application for instalment loans and what consumers looking to borrow a small sum of money can expect from this process.
In the vast majority of cases instalment loans are now applied for fully via an online based application form. Whilst there are still a number of high street lenders in existence, most consumers prefer the means of an online application due to its ease of excess. Lenders general have websites which are mobile ready, meaning that the website will adapt accordingly to the device you wish to apply on; be this your mobile, tablet or laptop. The application itself is compact and designed in most cases to be completed in as little as 10 minutes. Through the stages of the application, which normally consist of no more than 2 or 3, the potential lender will gather all of the information required to make an informed and sensible lending decision. With this in mind expect the application to ask for all personal information, such as name, address and banking information, as well as date of birth and employment details. Nowadays many application forms will also ask that the applicant complete a full income and expenditure so the lender is able to use this information to understand whether the loan is affordable at the requested amount and repayment.
Once the application form has been completed online most instalment loans lenders will aim to deliver a decision concerning the successful of the application within an effective and timely manner. Where it is possible to do so most lenders will transfer the funds via faster payment the same business day. The decision making process of such lenders is invariably made up of a mixture of both electronic checks as well as manual checks completed by skilled and fully trained Underwriters.
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk
Representative Example: Representative 1286.98% APR on a loan of £300.00 with 5 monthly repayments of £101.03 Total amount repayable £505.13 Annual interest rate (fixed) 290% Maximum APR 1351%
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Author: Internal Marketing Department