An installment loan or all-purpose loan has the great advantage that you are not required to prove what you want to use the money for. Whether you have to pay arrears, buy an old car, have a trip in mind or just want to do everyday shopping, with an installment loan you can do it all. The disadvantage of this type of loan is the high cost involved. Because you are not required to prove where the money goes, there is no collateral. This means that the lender runs a higher risk and will therefore charge you a higher interest. The conditions in terms of maximum amounts, term and approval of your loan will often be stricter than with a mortgage loan or a car loan.
How do you proceed to determine an installment loan?
First and foremost you must determine how much money you want to borrow. You can do this in two ways. Either you start from the amount that you can miss each month or from the amount that you need. In the first case, you can use an online simulation to check the total amount associated with this monthly amount, depending on the loan period. You will also get a picture of the cost price that belongs to a certain amount and a certain period. In the second case you enter the total amount and you determine after which period you must choose in order to be able to pay your monthly payments.
Apply for the installment loan
The installment loan is offered by almost every financial institution. Since the purpose of the installment loan does not affect its acceptance, you only need proof of income and expenditure. The balance between the two determines the amount that you can borrow. There are no set rules or costs for a loan for all purposes and both can therefore differ greatly from one lender to another. To make sure that you make the best choice, it pays to request a few loan quotes here.