These days it seems like there are nearly infinite methods for borrowing money. It can be difficult to understand them all and know which way is right for you. Maybe you've heard of something called an "installment loan" and were intrigued, but were still left with lots of questions.
Luckily the meaning isn’t as complicated as you may think. Today, we're here to help settle that confusion once and for all and make sure you're fully prepared to take on an installment loan if you decide it's right for you.
What is an Installment Loan?
Before we get started, think about each type of loan that you have and how they are repaid. This could be a payday loan, personal loan, cash advance loan, car loan, home loan, or any other type of loan.
From the above list, how many of your loans do you have to pay back over a set number of payments? Chances are most, if not all, of them. These are what you call installment loans. In short, these loans provide you with the flexibility to repay your loan back through a set number of scheduled payments.
These small loans could range from a few months to decades and can be for as little as $2,000 to well over a million. Examples include 30-year fixed mortgages, car loans, and even personal loans and certain emergency loans.
History of Installment Loans
The Singer company was one of the first companies to use installment loans in 1850 as a means for customers to purchase their sewing machines. Furniture dealers in Boston in 1899 became the next big industry to use installment loans to pay for their furniture. Later on, numerous industries that sold larger household appliances accepted installment loans as payment from their customers as well. This led to automobiles being paid for with the same method by 1924 - similar to how car payments are made today!
Why Would You Use an Installment Loan?
The reason you would use a deferred payment loan depends on why you got the loan in the first place. For example, if you get a house, then chances are you can’t pay for it outright. That’s why you’ll pay a set amount each month for the next thirty years.
On the other hand, you might need $1,000 to pay for some bills before you receive your next paycheck. In this case, you might be able to afford to pay for the loan outright a week from when you take it out. Anytime you need a loan and can’t pay it back outright and need to make multiple repayments over a set period of time, you’re getting an installment loan.
Discover Why We're Different
There are many benefits to the installment loan structure; mainly predictable payment amounts and an anticipated schedule make it easier to budget for your loan payment each month. This helps you avoid missing any payments because of unexpected changes to the amount you must repay.
Typically, companies who offer short term loans - like payday lenders - do not offer installment repayment plans. That’s because they expect you to be able to pay everything back at your next paycheck. At iCash, we wanted to take the manageable and predictable aspect of an installment loan and apply it to the payday loans model.
We offer two different repayment plan options that our customers can choose from. If you opt for a Cash Advance loan, you can pay back your loan on your next payday in one single payment. With our Flexpay option, you pay back your loan in 2 or 3 equal payments on your next upcoming paydays depending on your province of residence. This product, exclusively offered by iCash, allows you to have more time to repay your loan while paying no additional interest, much like an installment loan.
Visit our site www.icash.ca today to learn more about how we are disrupting the lending industry. You can apply, get approved, and get your cash all in under an hour!
