MaxLend provides quick approval, short-term direct installment loans as an alternative solution to payday loans to help everyday people keep their bank accounts in the green. But what is an installment loan, and how do they 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 with an easy way to plan a better financial future.
What Can Direct Installment Loans Be Used For?
Direct installment 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. These are paid off with a repayment plan over time. Depending on the type of installment loan and the lender, you may not be limited on how you spend the funds. Though some banks might, many direct lenders for installment loans may not ask how you intend to use the money. The lender you borrow from, the amount you borrow, and other factors affect the requirements for getting an unsecured installment loan.
You might hear these loans referred to as personal loans, advance loans, or cash loans. Regardless of how the lender refers to their loan, if you make set payments over a set amount of time, you have an installment loan.
Types of Installment Loans
There are two types of installment loans: collateralized and non-collateralized. Mortgages and auto loans are collateralized loans, while personal loans and student loans are classified as non-collateralized.
The word collateral means property that a borrower uses when getting a loan from a lender as a way to protect the lender’s interests.
Collateralized
Mortgages are collateralized or secured with the house that the loan is 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.
Many people prefer to take direct online installment loans that do not require collateral. This can make the application process simpler.
Non-Collateralized
Loans that do not require collateral, called non-collateralized or unsecured loans, are usually based on the borrower’s credit history and the ability to make payments. Compared to the eligibility criteria for most banks and other traditional lenders, MaxLend’s loan requirements are minimal. Non-collateralized installment loans may have a higher interest rate, reflecting the higher risk of non-repayment.
If you are looking for an unsecured installment loan, MaxLend might be able to help you.
Installment Loans Online
One of the easiest ways to apply for funding is to look for installment loans online. When you look at online installment loans, most often, you won’t even need to leave the comfort of your house or office. The majority of lenders who offer installment loans online allow you to complete your application and provide any necessary documents to them from a computer. Not having to do any of the process in person makes it easier for both the borrower and the lender.
Reasons For Getting a Direct Installment Loan
If unexpected expenses have come your way – home repairs, auto repairs, emergency legal fees, etc. – and you need emergency funding, direct installment loans could help you get back on your feet and give you time to get your finances under control. Those who apply for cash online and opt for installment loans online know exactly how much each payment will be and how long they’ll be paying their loans back.
Direct Lenders for Installment Loans
Direct 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 a direct installment loan, visit our website. We’re also available 24/7 by calling 877-936-4336.
Additional reading:
Most Common Reasons People Take Out a Loan
Understanding the Difference Between Fixed and Variable Loans
Overspending: How to Stop Spending Money
The content on this site is for informational purposes only and is not professional financial advice. MaxLend does not assume responsibility for the information given. All information should be weighed against your own abilities and circumstances and applied accordingly. It is up to readers to determine if this information is safe and suitable for their own situations.
MaxLend, is a sovereign enterprise, an economic development arm, and instrumentality of, and wholly-owned and controlled by, the Mandan, Hidatsa, and Arikara Nation, a federally-recognized sovereign American Indian Tribe. (the “Tribe”). This means that MaxLend’s loan products are provided by a sovereign government and the proceeds of our business fund governmental services for Tribe citizens. This also means that MaxLend is not subject to suit or service of process. Rather, MaxLend is regulated by the Tribe. If you do business with MaxLend, your potential forums for dispute resolution will be limited to those available under Tribal law and your loan agreement. As more specifically set forth in MaxLend’s contracts, these forums include an informal but affordable and efficient Tribal dispute resolution, or individual arbitration before a neutral arbitrator. Otherwise, MaxLend is not subject to suit or service of process. Nothing in this website is intended to waive or otherwise prejudice MaxLend’s entitlement to these protections. Neither MaxLend nor the Tribe has waived its sovereign immunity in connection with any claims relative to the use of this website. If you are not comfortable doing business with sovereign instrumentality that cannot be sued in court, you should discontinue the use of this website.