Loans with repayment in installments undoubtedly constitute a segment of the offer of modern loan institutions less known to clients. By default, we associate the loan sector primarily with solutions such as popular payday loans, which are simply quick, simple loans for small amounts.
However, it is worth being aware of the fact that the offer of today’s loan institutions is very often also long-term loans. What’s more, both the maximum available loan amounts and repayment periods for some companies can be at a really high level, comparable even with the offer of consumer loans in banks.
What is worth knowing about non-bank long-term loans?
Do customers often wonder to what extent solutions such as long-term loans resemble much better-known payday loans in terms of their specifics? To illustrate the mechanism of installment loans, however, a comparison with consumer loans at banks will be much more adequate. Repayment takes place, as the name implies, in installments, and not by a one-time refund of the entire borrowed amount.
In the case of installment loans, the process of verifying the creditworthiness of a potential customer will be a bit more similar to procedures similar to bank loans, than the verification we take before taking a payday loan. This is of course not an iron rule, but we can expect that when applying for an installment loan the lender will want to check our financial situation more thoroughly.
Does this necessarily mean that additional documentation, such as an income certificate, is required? Not necessarily. Currently, tools such as Instantor or Kontomatik are becoming more and more popular. Theoretically, they serve primarily to verify the customer’s personal data. In fact, apart from our personal data, the application also downloads the bank account history. In this way, the lender obtains easy and, most importantly, highly credible insight into the state of our personal finances.
What else is worth knowing about long-term installment loans?
Contrary to popular belief, having a bank account is not an iron condition for getting an installment loan from a loan institution. Currently, quite a lot of lenders also offer the option of paying out the loan amount via a check. However, it should be remembered that in such a situation also repayment of loan installments will take place without a banking circuit.
Is it possible to get installment loans completely online? The answer is yes, but this will not apply to all loan companies. What’s more, in some cases it may be necessary to contact a company advisor in person, even if theoretically the offer is available online. Most often this happens when the assessment of our creditworthiness has yielded an ambiguous result.
Some loan companies offer customers the option of credit holidays or extending the duration of the loan. However, this is also by no means the rule. Before choosing a specific installment loan offer, it is good to carefully read the documentation that the lender makes available on its website.