Obtaining financial relief is not always easy when emergencies arise. The problem with emergencies is that the timing is always inconvenient and the amount of funds available might be limited. In some cases, a short term loan that focuses on full repayment is not the most appropriate solution to the problem. When a larger amount of funds are needed or when it is not possible to pay the full amount in one paycheck, installment loans might provide some relief.
How They Work
Installment loans are a type of funding solution that takes only a few minutes to apply and receive a result. The loan requires some basic information to apply and is approved within a few minutes of submitting the application. The funds are issued according to the lender’s specifications, which might mean a direct deposit or receiving cash for the loan.
After the loan is provided, borrowers can use the funds as needed to prevent a crisis or reduce other problems. The borrower is not expected to pay the full amount of the loan with the first payment. Instead, a smaller portion of the loan is paid at one time.
Amount of Time for Repayment
Installment loans are like any other loan. It is paid in several installments over the course of months. In most cases, the small loan is repaid within two to three months in small amounts each payday. After the final payment, the loan is paid in full and payments are no longer necessary.
Although the process is similar, the small loans are usually designed for short periods of time. The loan repayment time will vary based on the needs of the customer, the specific loan and the application. Applications can provide different repayment periods, such as six months, one year or three years.
The longer the amount of time selected on the application, the smaller the repayment amount per month will become. In most cases, the loan will not require an extended period of time to repay the full amount unless the amount borrowed is larger than it is possible to pay within a few months.
Paying loans in installments can provide financial relief without becoming overwhelmed by the need to repay the full amount within a short period of time. Although the loan is repaid in installments, borrowers need to read through the contract carefully to determine the actual amount of time the loan provides, the method of paying the loan and the terms that apply to the account.