MaxLend provides quick approval, short-term installment loans as an alternative solution to payday loans to help everyday people keep their heads above the water and their bank accounts in the green. But what is an installment loan, and how do online installment loans work?
What Is an Installment Loan?
An installment loan is a type of loan where you receive one lump sum of money and sign an agreement stating you will pay it back in scheduled payments over a fixed amount of time until your debt is paid off. The repayment schedule is predictable, allowing borrowers to have control over their budget and providing them an easier way to plan a better financial future.
What Can Installment Loans Be Used For?
These money loans can be used for unexpected personal expenses, as well as a wide variety of things, if the money in your savings account is insufficient. There are two types of online installment loans available. You need to apply for the type that best suits your needs. That is why we have provided additional information regarding the types of direct installment loans below.
Types of Installment Loans
There are two types of installment loans: collateralized and non-collateralized. Between mortgages, auto loans, personal loans, and student loans, mortgages and auto loans are collateralized, while personal loans and student loans are non-collateralized.
Collateralized
Collateral is defined by Merriam-Webster as “property pledged by a borrower to protect the interests of the lender.” When people take out mortgages to buy their homes, these mortgages are collateralized with the houses that the loans are being used to purchase. This is the same for auto loans, where the lender uses the vehicle as security against the sum of the loan. If you fail to make payments for a collateralized loan, you risk losing the item being used for collateral.
What happens if you need to take out a loan for something that can’t become collateral? When you need a loan to help pay a few bills or to get back on track. It’s times like these that you might want to look into getting a non-collateralized loan. You want a loan where you can borrow money, but you don’t want to go into the details about what the loan will be used for. More information on loans like these immediately follows.
Non-Collateralized
Loans that do not require collateral are usually based on the borrower’s credit score and the ability to make payments based on credit history. You can also call a loan like this an unsecured installment loan. Compared to the eligibility criteria for most banks and other traditional lenders, MaxLend’s loan requirements are minimal. Non-collateralized installment loans usually have higher interest rates than collateralized direct installment loans, reflecting the higher risk of non-repayment due to the fact that no collateral was offered up.
Should I Get an Installment Loan?
If unexpected expenses have come your way – home repairs, auto repairs, emergency legal fees, etc. – and you need emergency funding, a personal installment loan online could help you get back on your feet and give you time to get your finances under control. When you apply for cash online and opt for an installment loan, you know exactly how much you have to repay each month.
An Alternative Solution to Payday Loans
Installment loans are popular money options for those in need of emergency funding. At MaxLend, we offer cash loans online in a short-term installment plan for those in a financial emergency. This type of loan is an alternative solution to payday loans. For more information on how to get an installment loan, contact MaxLend, a provider of direct installment loans, today. We’re available 24/7 at 877-936-4336.
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