An Instalment loan is a type of loan that is repaid over a set period in a series of regular payments, rather than a lump sum. An instalment loan usually carries a fixed interest rate and repayment amount. Everything from a mortgage to a doorstep loan can be a type of instalment loan.
It’s important to remember that the repayment terms, length of the loan, eligibility conditions and available amounts will differ from lender to lender.
What are instalment loans used for?
Instalment loans can be used for a variety of reasons, here are some examples of what people might use one for:
- Emergency home repairs
- Unforeseen costs or bills
- Debt consolidation
- Purchasing a car
The advantages of an instalment loan
The biggest advantage that attracts most borrowers is that the repayments are spread over a predetermined period, meaning the repayment amounts are often smaller and easier to manage than with other types of loan. This can be helpful when budgeting as you’re aware of your monthly outgoings.
Instalment loans are also more likely to be flexible in terms of repayment periods and most lenders allow you to choose a repayment period that suits you. They also typically have a fixed rate of interest throughout the loan term meaning there won’t be any changes over the term of the loan.
An instalment loan could also potentially improve your credit rating if you’re able to make the loan repayments on time.
Am I eligible for an instalment loan?
Whether you’re eligible for an instalment loan will vary depending on the lender. The decision is likely to be dependent on:
- How much money you want to borrow
- How long you’ll be repaying the loan
- Your current financial situation
- Your credit rating
Can you get an instalment loan with bad credit?
At Morses Club, we try to consider every application, whatever your circumstances. Even if you have a less than perfect credit history, your application may still be considered. If you’re interested in a loan from Morses Club, why not apply online today?
Existing customers can borrow up to £1500 subject to approval.