Instalment loans online are unsecured personal loans, designed to allow you to spread the cost of a short term loan over a period of time. Taking out an instalment loan online allows you the much-needed peace of mind of not having to repay the entire loan in one payment, making it much more manageable in both the short and the long term to borrow up to £1,500.
These loans provide a degree of flexibility that few other short term finance options do. You may therefore, borrow an agreed amount of money to be paid back over different periods of time. This may include:
- 3 month instalment loans
- 6 month instalment loans
- 9 month instalment loans
- 12 month instalment loans
We work with a number of UK based online instalment lenders who can help you acquire the funds you need in order to get out of what is likely to be a difficult situation. Whilst traditional payday loans require repayment in a single payment at the end of the term, these loans allow you to evenly spread your costs and repayments over a longer time. This means that you are less likely to greatly impact upon your regular monthly finances.
Apply for an instalment loan today.
How Does an Instalment Loan Work?
In principle, an instalment loan provides you with the full amount of money you need in one go. The borrower will agree the amount and the repayment terms and timeframe with the lender prior to the money being provided. Upon acceptance, the money is then received by the nominated bank account of the borrower and the clock starts.
The borrower may for example be approved for a loan of £1,000 to be repaid over 6 months. As with all other loans, the loan amount plus interest will need to be repaid. However, as opposed to other short term loans such as payday or overdraft loans, the costs are spread out across the agreed timeframe; 6 months in this case.
One of the fundamental advantages of these loans is that one’s regular monthly finances are minimally impacted, compared to other short term loans, as an instalment loan will not require you to pay the whole amount plus interest in one go. The borrower has to simply repay a smaller amount each month to cover all of these costs and after 6 months, so long as all repayments have been fulfilled, the debt is cleared.
What Are Instalment Loans Used For?
There is no single use for an instalment loan and there are many reasons why you may find yourself needing the help of one. However, there are cases that are more typical than others in the case of borrowers of online instalment loan products in the UK. Usually, this tends to be due to an unexpected bill, debt or expense which needs paying immediately. However, instalment lenders will assess borrowers on their own merit and will generally consider applications on a case by case basis.
Unexpected Bills – Often credit card and utility bills can be unpredictable. For example, it may be the case that you have had to buy more groceries and shopping than usual and find yourself with a credit card bill that you cannot fully repay by the end of the month, or perhaps your gas bill was higher than expected in the winter.
As unpaid and outstanding debts can negatively impact your credit score, it can be logical to take out an instalment loan; clearing your debt and dealing solely with the lender, who will allow you to repay in instalments rather than in one difficult payment.
Consolidating Existing Debts – It is not uncommon to have a number of outstanding debts at one time. For example, you may have multiple credit cards, utilities and internet bills all hanging over you at the same time. Dealing with all of these can be very dauting. Taking out a single instalment loan to consolidate and clear all of these debts into one affordable loan with manageable repayments is a sensible and much more manageable option.
Home Repairs – It may be the case that something goes wrong in your home, for example the boiler breaks down, a window is accidentally smashed or a leak occurs. You may not have the money available to fix the issue in question and you may need to save up to gather enough money to be able to pay for repairs, by which time the problem could be worse and more expensive.
An instalment loan however, can provide you with the immediate finding you need, whilst being repaid plus interest over a number of future months in a logical and more manageable manner.
Using an Instalment Loan for Car Repairs
Using an instalment loan product for car repairs can be the difference between having your vehicle available and having to wait potentially months to get it fixed should it be required. A car or vehicle breaking down is very unpredictable and when it happens, it can mean that you are unable to commute or get from A to B as you require.
By taking out an instalment loan online however, you can pay for the car repairs and repay over a manageable amount of time, getting you back on the road as soon as possible.
Why Instalment Loans from Payday Loans Hub?
We work with a panel of instalment lenders, all of whom are experienced and established within the instalment loans industry. This means that by applying with us and based on the details you provide, you are able to compare lenders, helping you choose the best loan for your needs and requirements.
We work with direct lenders of instalment loans who can help you borrow the money you need to get back on your financial feet for the future, no matter what the loan is for.
Instalment Loans for Bad Credit
We consider all applications, including those from people with less than perfect or even bad credit ratings. We understand that it can be very difficult to get out of the rut you may be in and so all applications are considered. As long as you meet our instalment loan application criteria, we may be able to pass your details to a suitable lender to fund a loan for you.
Moreover, by repaying an instalment loan on time, you may be able to improve your credit rating by demonstrating positive financial practices. This may help you to rebuild your credit score for the future, helping you with future applications.
Online Instalment Loans – Apply Today
Apply today for an instalment loan online through our easy to use booking form, to find out how much you may be eligible to borrow through one of our instalment loans. Apply today.