One of the most popular loan products is the installment loan. The installment loan offers the user numerous advantages, such as low interest rates and a high degree of flexibility. The installment loan offers on the market are for the most part very different, but all offers have one thing in common, repayment is made in installments. Installment repayment is one of the success secrets of the installment loan.
The installment repayment ensures that the remaining debt is reduced quickly and the interest costs are therefore manageable. Many installment loans are offered today without a specific purpose, so that they are always freely available. Due to the free availability, the installment loan can be used for virtually all purposes. The high offer in the area of installment loans has contributed to the fact that installment loans are now offered at very low interest rates. However, the high offer also has a clear disadvantage, the comparability of several offers decreases. An installment loan is often offered with long terms due to the large amounts of funding that are often offered. A long-term installment loan creates both advantages and disadvantages for the consumer.
Advantages and disadvantages of a long-term installment loan
A long-term installment loan creates numerous advantages, such as a constant liquidity charge. The borrower can plan and coordinate the repayment optimally through the monthly constant installments. This results in yet another advantage that credit risk can be significantly reduced. A long term with the installment loan also includes a decisive disadvantage , which can be attributed to the design of the loan product. The interest or the interest costs for the installment loan are always determined from the remaining debt.
If the repayment is made in low installments, the remaining debt also slows down, so that the loan costs are consequently significantly higher. The term for installment loan offers on the market is often 12-84 months, few banks also offer a term of 120 months. In addition to the term, there are other criteria to consider. The effective interest rate, for example, is particularly important. Effective interest rates have a huge impact on the cost of borrowing. The effective interest rate is influenced by various factors such as term, loan amount and credit rating.
Compare installment loans with a long term on the Internet
In order to find the lowest-interest installment loan with a long term, borrowers should definitely use a loan comparison on the Internet. The loan comparison is made possible by many finance portals with a loan calculator. The loan calculator offers the possibility of making a comparison with individual details. In addition to a specific loan amount, a long term can also be included in the loan search, for example.
Additional information on income and intended use further restrict the search so that a suitable loan product can be found quickly without spending a lot of time. The online loan comparison can help ensure that the borrower can permanently secure the lowest interest rate and the best conditions. The credit costs can be reduced permanently.