Gaurav Rathore
His write-ups blend creativity, personal experience, and tailored technical advice, meeting reader needs effectively.
KEY TAKEAWAYS
- Installment loans provides financial assistance with its structured repayment plans.
- These loans can take care of any needs one might have without putting any burden on them.
- Make sure to compare different loan terms and interest rates before getting any.
- Timely repayment is important to avoid penalties.
- Installment loans should only be taken when necessary.
Debt is the slavery of the free man. – Publilius Syrus (Latin Writer)
Financial crisis always come unannounced and can mess up with a person’s mental health if they don’t have money to deal with some kind of situation. I’ve been there and can relate to how it feels, but in such circumstances installments loans can be quite helpful.
According to IDFC First Bank, “An installment loan is an agreement in which a loan is repaid over time through periodic payments.” It is a safe and flexible option that can cover short term expenses.
To give you a better understand on the topic, I’m writing this article mentioning why installments loans are the perfect solution for short term expenses. So, let’s get started.
In installment loans, individuals get the necessary amount that needs to be paid in a fixed repayment period. When the repayment is made, principal amount along with interest both are given together, this structured approach manages debt effectively.
These come under various names like personal loans, car loans, small business loans etc., and can be availed by anyone who meets the eligibility criteria. Tenure can go from few months to years, making the repayment affordable and interest isn’t that high either.
Not every loan is the same, they all serve different purpose and can only be obtained under special circumstances. Installment loans are usually easy to get and have low cost repayment, making them ideal for a diverse range of expenses.
It gives high and low loan options and individuals can select them according to their needs and whether they’ll stand up to this financial debt obligations.
Best thing about this is you don’t have to repay the whole amount borrowed along with interest at the same time. Suppose you took a small loan of $6,000 on the interest of 2%, for 6 months now each month you’ll pay $1000 along with 2% interest. This reduces the burden and given you plenty of time to save up money.
Sure, it’s not perfect either and does have some downsides, which can be seen in the infographic below.
These loans shouldn’t be taken until and unless necessary, you cant just woke up one day and decide that I should take a loan. Installment loans should be taken when someone is in need or is in any financial crisis.
If someone wants to buy a car, get their home renovated or pay medical expenses, these are some of the situation when it can be taken. It’s coming at a cost and needs to be repaid, you are in debt until it’s paid, so be mindful while availing it.
There are several options available from where people can take out installment loan, but they need to consider several factors before settling for any of them. This includes:
No decision should be made without considering above given factors. Don’t fall for traps and insert your personal details on any unknown website. Do proper research before settling for any service.
DID YOU KNOW?The global public debt was estimated to be $97 trillion in 2023!
Installment loans are very helpful and can be proven lifesaver. These can be obtained easily as long as you meet the eligibility criteria and money if created within 2-3 working days. However, this should only be availed when someone is in great need and not when you do have money but don’t want to spend it.
Going in debt is never good and failing to make timely repayment can impact your CIBIL score negatively which is not a good thing and in future you might not be able to take benefits from loan services. So, think carefully and take the right step.
Installment loan can be lowered by increasing the repayment time, making frequent payments, by paying off the loan before its due and by applying for debt management services.
Installment loan is a short term credit where individuals get the money from any services which needs to be repaid over a period of time.
Your CIBIL score will be effected negatively, and late fee penalty will be shared, which will increase the amount. If the amount has been due for a while, a complaint can also be filled.
