An installment loan by MaxLend Loans is a consumer loan used for private purposes, to deal with unforeseen temporary financial issues. These loans do not affect a client’s savings. It is an easy loan to get, but since it is not tied to certain purchases, it can get expensive.
No need to clarify
With an installment loan, people do not need to account for everything they use the money for. It allows clients to borrow funds for any purchase; it can be used to replace furniture, buy a new computer, or for leisurely activities. Another advantage is that there is no need to dip into your savings account.
The terms of the contract are very reasonable because the repayment can be spread out, but you pay a fixed monthly amount. The interest rate depends on the amount and duration of the installment loan. The minimum duration is 12 months, the maximum varies according to the amount borrowed.
Why are installment loans important?
Providing installment loans are not only there to help each consumer in need. In fact, their importance is crucial for the economy. These types of loans allow people to manage their budget more flexibly and spread or defer payment of a purchase or service. Without these loans, folks can jump-start the economy by spending money on things they need or want.
The sectors most affected by installment credit are the automotive industry, the furniture industry, the production of household appliances and, to a lesser extent, the clothing industry. Borrowing money also costs money. A loan can never be considered as an additional source of income!
Interest must be paid on the amount borrowed. Also, never take a loan out if you are not sure you can repay it.
Difference between personal loans and installment loans
Personal loans are distributed by credit institutions whose banks are an integral part and often avoids the risks of over-indebtedness, which means it is easier to negotiate the terms of a loan. The disadvantage arises from the fact that it is not linked to a specific purchase, meaning it must nevertheless continue to be repaid.