-->For those looking for a short term
loan to take care of sudden expenses, payday loans are a great
option. These need to be repaid in a specific period in full. There
are times when the lender will offer installment payday loans for
customers in need.
Payday loans on installment basis are not extremely popular with
people; however there are various lenders which provide this service.
The intention of a payday loan is to offer customers a short term
loan for an emergency payment. This loan is paid as soon as the fixed
loan period is over. However, there are times when a party is unable
to repay the loan in time. In such cases, to avoid a penalty, they
may try to extend the loan or repay the same in installments. This is
a service offered by some payday lenders to ensure that they get
their money back.
How are Installment payday loans helpful?
During times of emergencies, a person may take a payday loan to
pay a sudden expense. These loans are unsecured and are for a short
period of time. There are various advantages of taking this type of
loan as they offer loans for short periods of time and for small
amounts which a normal lender would not offer. While the interest
rates are much higher than a normal loan, payday loans offer
customers services in a fast paced manner.
Most lending institutions have a limit on the time period as well
as the amount they lend. This is quite often more than what a person
requires. They also pay a great deal of attention to a person’s
credit rating. The process of checking documents, credit rating,
etc., can take a long period of time. This may be beyond the ability
of the borrower who requires funds urgently. In such times a payday
loan is the best option. A payday lender understands the requirements
of their clients and can offer them short term loans. While credit
rating is important, it is not the final deciding factor and based on
various factors they can even offer a loan on installment basis
depending upon the customer’s abilities.
While a payday loan is more expensive than a normal loan, the
flexibility of loan amount and payment, the absence of long
background and stringent credit rating checks makes instalment payday
loans a preferred choice for many people who want to avail quick cash
help. In the UK itself, payday loans have become quite popular among
different sections of the working and non-working class. The number
of people taking loans has increased from 2006 to 4 times the amount
in 2009. The same has happened with the value of loans. The total
loan amount taken out by people in 2009, as per a study was 4.1
million.
In times when a person is unable to repay the payday loan in time,
an installment scheme may be offered to customers. There is a higher
rate of interest applied to these loans; however, the customers are
provided with the flexibility to repay their payday loan over a
period of time. This is offered by creditors to clients who might
default on a loan. To ensure that there is no chance of defaulting on
payment and no loss suffered installment basis loans is offered.
