Installment Loans are Easy to Pay Back
Installment loans are the most common products provided by the banks to the customers. These are the traditional loans that people are taking from the inception of the concept of banking. The installment loans are the most preferred loan options for the borrowers as they don’t have to pay the amount at one shot and they can get enough time to pay the amount back. This is why this type of loan is very popular throughout the world. In the modern world, installment loans are available online from various Non-Banking Financial Organizations to meet your immediate requirements of money.
Who Provide Installment Loans?
The traditional banks are always ready to provide installment loans as the main source of income of the banking service is the interest of the loans provided. There are some other organizations too who provide installment loans to the borrowers. As per the activities, these organizations are divided into two categories. The first one is banking organizations, and the second one is Non-Banking Financial Corporations or NBFCs. Both of them lend money to the borrowers but the banks also keep the money of the general people under their security. Farther more, the interest rates of these NBFCs are a bit higher than that of the banks.
How Many Types of Loans are There?
Banks and the NBFCs provide different types of loans to the borrowers as per their needs. Not only the individuals borrow money from the banks, but many companies also borrow money from them. But as per the usages by the individuals, the loans are categorized into the following categories.
- Personal Loans
These loans are provided for the purpose of personal usages. The lenders don’t interfere with how the person is going to use the money. It is a kind of unsecured loan as there is no security provided by the borrower up to a certain limit of money. But when the amount is big, then the borrower has to provide something as security or any person as his co-borrower.
- Home Loans
These loans are kind of secured installment loans as the money is taken to build a fixed asset. The interests of these loans are lower as the bank has an option to recover the loan amount by selling the home. The amount applied is not provided fully at a time but the officials inspect the progress of work from time to time and then disburse the amount of time to time as and when needed.
- Vehicle Loans
These loans are taken to buy vehicles for personal or commercial purposes. As the asset is moveable thus it bears a bit higher rate of interest than the former one. Here you have to pay a certain amount of money to the bank or to the dealer and the rest of the amount is provided to you by the banks.
- Education Loans
These loans are provided to the students for their study to pursue a particular educational or professional course. The guardian of the student has to sign as the co-borrower and the amount is paid directly to the institution.