It’s an available financial envelope that you can use whenever you want. It prevents you from touching your savings, your savings are intact. And you know where you are going: you set the amount borrowed! The credit process is defined from the start, and nothing changes. You are guaranteed a fixed rate and a repayment term that will not vary. This protects you from unpleasant surprises and rate variations. You have a document that summarizes all the useful information.
To get your loan, the procedures are simple and fairly quick. There are no administrative fees or administration fees. Most of the time, everything takes place online, with little supporting documentation. The organizations process the files in a few days.
Once you have the money in your account, you spend the money how you want. You do not have to inform your credit institution. You spend 100, 1000, 2000 €, you choose. Simple installment option brings freedom and autonomy. It sometimes unblocks insoluble situations. You can deal with any unforeseen event without borrowing from family or friends.
Finally, it is flexible; you can change the amount of monthly payments by asking:
The shortening of the repayment term.
The extension of this duration.
You can reimburse it in whole or in part before its term (law on consumption).
What can you actually finance with an installment loan?
You can finance whatever you want without throwing your budget off balance. Effortlessly, you can quickly get the funds you need for:
A week’s vacation in the sun in winter.
The comfortable sofa spotted at your favorite retailer.
The studies of a child.
A new ultra thin laptop.
A silent and efficient dishwasher.
Buy a nice electric- assisted bicycle.
Redo the decor of your home.
The renovation of your bathroom.
A new wardrobe for your new job.
The launch of a professional activity.
You increase your purchasing power when it matters most to you. You can even finance unscheduled work after a real estate purchase. Some borrowers finance medical expenses such as the placement of dental implants. As an indication, the average APR (annual percentage rate) for a loan of € 10,000 over 48 months is 7.50% and ranges between 4.95% and 12.50% APR.
What are the characteristics of the installment loan?
It is, like the personal loan, a variant of consumer credit. In common parlance, it is also called personal credit. It is a contract entered into with an approved credit institution. The object of the contract is a sum of money or a means of payment. The law obliges to mention there the number, the amount, and the frequency of repayments. In summary, it is a fixed-term loan with fixed monthly payments.
The credit institution has the duty to provide an amortization table. Please note that the amortization table for a mortgage loan has a different calculation method. It must show certain essential information. You should be able to read: the outstanding capital, the total cost, the depreciable capital.
This document is used to manage your budget precisely and in advance. By signing the contract, you agree to repay the sums borrowed. It approximates the category of unallocated personal loans. You pay back the interest on the full amount you borrow.