The installment loan is the perfect credit option to help you achieve your projects. However, each financial institution comes with its own set of advantages and disadvantages, which you need to decipher to secure a loan at a preferential rate. Let Credafin assist you!
Installment loans: Full of Advantages
In the event of unexpected circumstances, an installment loan serves as an effective alternative. This credit format is favored by consumers since it requires neither a full report nor deductions from a savings account. Additionally, repayment can be spread according to your preference, with monthly payments varying based on the borrower’s repayment capability.
Simple Procedures
Acquiring an installment loan involves minimal procedures. Simply visit a financial institution with identification and your latest pay slips to fill out a form. Some institutions allow for online applications, but in either case, clients often receive their funds in the shortest possible time.
Credit: For Whom?
Low-rate installment loans are granted to individuals capable of repaying their debts or those with a debt ratio under 30%. Those registered on the BNB blacklist cannot avail of this financing option.
The Credit Simulation for Efficiency
Nearly all banks provide a loan simulator on their online platform, enabling applicants to plan for the future by assessing the amount and distribution of monthly payments. This service is free and places no obligation on the user. The online credit simulation also allows comparison of services from different financial institutions without relying on traditional comparators, which only give a general overview. To find the right balance for payments, use the credit simulator and input several monthly sums corresponding to the requested funds.
Pay According to Your Means
To pay off the debt as quickly as possible, it’s better to choose a short repayment period. This means higher monthly payments, but the overall credit cost is lower. Longer repayment periods cost more but are ideal for those with unstable financial situations or excessive debts. In such cases, banks opt for constant monthly payments, and borrowers often cannot negotiate payment flexibility.
Obtaining a Low-Rate Installment Loan
There are various strategies to secure a loan at the best rate, even if rates are fixed. Some suggest discussing the matter directly with a financial advisor instead of applying online, offering a more personalized solution and the possibility to discuss certain advantages.
For your information, the annual effective global rate currently ranges from 6.99% to 12.50%, depending on the institution.
The Contract: A Guarantee of Transparency
Before signing a loan contract, it is crucial to pay attention to several details, such as the total cost of the loan, the insurance premium, and other rates and fees mentioned in the contract. Contracts are generally transparent due to legal requirements, yet caution is still advisable. Ask all your questions directly to your advisor.
