Prolonged repayment duration, higher loanable amount, and efficient application are a few among many reasons why people tend to opt for personal loans. Before going through to its other advantages, it is crucial to know the most common types of installment loans.
Types of Installment Loans
Auto Loans
Auto loans are a kind of installment loan that’s meant to be applied when planning to purchase a car. Typically, this type of loan is repaid within a range of 12 to 96 months. Take note, however, that not all lenders have the same duration of monthly payments. Usually, loans with a longer-term repayment come with a lower interest rate, while loans with a shorter repayment term have a higher interest rate.
Mortgages
If auto loans are for buying cars, mortgages are for purchasing a house. Most mortgages usually have a duration of 15 to 30 years of repayment, as well as a fixed interest rate and set monthly payments that often don’t change.
Personal Loans
Personal loans can be used for a variety of purposes. You can get this loan to consolidate your debt, pay off sudden bills, or finance a major purchase. Typically, personal loans should be repaid within 12 to 96 months. One downside of personal loans is that they come with a high-interest rate as lenders don’t usually require collaterals, unlike auto loans and mortgages.
Advantages of Installment Loans
As stated earlier, there are several reasons why a lot of people prefer installment loans than any other kind of loan, including repayment duration, higher borrowing limit, and efficient application as some of its benefits. Specifically, here’s a roundup of the reasons why an installment loan can be the best for you.
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Higher Borrowing Limit
Because installment loans offer a more extended repayment schedule, banks and other lenders can give you a higher borrowing limit. This is an amazingly good advantage when you’re in need of a big amount of money, especially during emergencies. Plus, a larger borrowing limit removes the possibility of applying for multiple loans in the future.
Quick and Easy Application
The application for an installment loan can be either personal or online. Most people prefer applying online because of its fast and offers an immediate response not so long after the application. Take CreditNinja, for example. They offer a software application intended for borrowers, which can be awesome for people who don’t want to leave the comfort of their home.
Quick Cash
Many lenders offer a quick credit check that makes the process and approval quicker. Once you get approved, they will deposit the funds directly into your bank account as soon as possible. They also offer flexible repayment terms, depending on the type of loan and repayment plan you applied.
Options For Any Credit Rating
Even if you have a poor credit score or financial issues in the past, you could still be able to apply for an installment loan. Many lenders don’t regard a loan applicant’s credit score as their only deciding factor. An applicant can show other essential documents, like payslips, paychecks, or proof of billing, to serve as another determining point for his/her credit rating.
Apply Any Time of the Day
Banks and other traditional lenders follow certain standard business hours between 9:00 AM to 5:00 PM. Meaning, they can’t always be accessible 24/7. Fortunately, online lenders offer round the clock services. If an unexpected situation happens and you need some quick cash, you’ll just have to access the Internet to apply for a loan online.
If it’s a big sum of money and you need to do over-the-bank counter, you might need to wait for the next day. The good thing is you don’t have to spend more time at the bank as your application has already processed.
Flexible Repayment Terms
One of the most significant benefits of installment loans is that it offers affordable repayment terms to the borrowers. Instead of paying a large sum of money in one go, a borrower can repay the lender with lower payments with a fixed interest rate in a fixed schedule. Paying in reasonable amounts allows a borrower to start working out his/her financial management.
Takeaway
Installment loans can be a solution when you’re in need of immediate cash, not to mention its flexible repayment terms. It’s good for borrowers who are only planning to loan upfront. Just be careful not to treat installment loans like payday loans. Just like any kind of loans, an installment loan doesn’t affect your credit score as long as you always pay on time. Don’t ever think of refinancing so you can extend a repayment date. Otherwise, your debt burden will grow.
You came to the right place. In this article, we will see how to apply and secure a personal loan.
What to Do Before Applying for a Personal Loan
1. Check Your Credit Score
A higher credit score will make it easy for you to get a loan. If your credit score isn’t good enough, then take steps to increase it before applying for a loan.
You can get a loan with a low credit score but at a higher interest rate.
2. Consider Different Lender Options Online
People usually go to banks to take a loan. Since the banks would be aware of your financial credibility, they would be flexible in offering you a loan.
However, you can also consider other lenders and any Non-Banking Financial Company (NBFC). Verify their credibility before approaching them. Check for loan costs, interest rates, terms and tenure.
3. Compare the Interest Rates
Shop around to check what interest rates different lenders are offering. Compare the loan amounts and the required monthly payments too. Some financial institutions may offer you an unsecured personal loan while a local bank may offer better interest rates.
Apart from comparing personal loan interest rates, check what other charges you may have to bear. These may include processing fees, payment penalties, and foreclosure charges.
4. Check your Eligibility
Banks or other lenders require you to be salaried or self-employed to be eligible for a loan. You should be in a particular age bracket as well.
5. Check the Documentation Required
Check all the documents you require to apply for the loan. These may include your recent payslips, letter of employment, current address, photographs, etc.
6. Choose the Appropriate Lender
Choose a lender who gives you a flexible tenure and different EMI options to pay off the loan. Use an EMI and personal loan interest calculator online to estimate your monthly cash outflow.
7. Read the T&C Document Carefully
Make sure you understand all the terms and conditions before you apply and secure the loan. If you have any queries, ask the lender immediately.
Once you complete the above-mentioned steps, you can apply for the loan – either online or through the financial institution’s app.
How to Apply for a Personal loan
8. Online Application
Fill up the online form and upload all the required documents. In this step, you need to mention:
- Desired loan amount
- Contact details
- Email ID
This is the stage when all the documents will be verified. The financial institute will check whether you are eligible for the loan or not. Once all the documents are verified, you will get an instant e-approval.
After the verification, the loan disbursal process will be initiated. You will have to e-sign the loan agreement document. By doing this, you agree to abide by the terms and conditions of the lender.
Once you e-sign the document, disbursal process will be started. Provide your bank account details where the loan amount will be disbursed.
9. Requests through E-mail or Phone Banking
Leave a request for a personal loan with the bank either through the customer service centre or an e-mail. The financial institute will review your eligibility and contact you to take the process ahead.
10. Offline Request at the Bank
If you don’t want to go the online route, go to the nearest bank of your choice. Talk to a relationship manager and request a loan.
Getting a personal loan has become a very simple process. You can use instant personal loan apps and have the loan amount in your bank account in no time.
Positive Technologies has announced its latest report from its own audits of web application security: Web Application Vulnerabilities in 2017. The results, collated through the security firm’s automated source code analysis through the PT Application Inspector, detected vulnerabilities in every single web application tested in 2017. Among the key findings, 94% of applications had at least one high-severity vulnerability, demonstrating that websites are a critical weakness for organizations.
Breaking down the detected vulnerabilities by severity level, most (65%) were of medium severity, with much of the remainder (27%) consisting of high-severity vulnerabilities.
Leigh-Anne Galloway, Cyber Security Resilience Lead at Positive Technologies said: “Web applications practically have a target painted on their back. A large number of unfixed, exploitable vulnerabilities is a windfall for hackers, who can use these flaws to steal sensitive information or access an internal network. Fortunately, most vulnerabilities can be discovered long before an attack ever happens. The key is to analyze application source code.”
Financial services are at greatest risk
As expected by Positive Technologies experts, finance web applications (46% of all tested web applications) were at the greatest risk, with high-severity vulnerabilities found in 100% of tested banking and finance web applications.
In fact, web applications at banks and other financial institutions, as well as governments, draw the most attention from hackers, as confirmed in a series of Positive Technologies reports.
Denial of service is especially threatening for e-commerce web applications, because any downtime means missed business and lost customers. High-profile e-commerce web applications receive large amounts of daily visits, increasing the motivation for attackers to find vulnerabilities to turn against users.
Attacks targeting users are the most dangerous
Positive Technologies assessed the potential impact of every detected web application vulnerability and compiled a list of the most common security threats. The number-one threat is attacks that target web application users. Alarmingly, 87% of banking web applications and all government web applications tested by Positive Technologies were susceptible to attacks against users. Users of government web applications in particular tend to not be security-savvy, which makes them easy victims for attackers.
The most common vulnerability across the board was Cross-Site Scripting (affecting 82% of tested web applications), which allows attackers to perform phishing attacks against web application users or infect their computers with malware.
Other critical vulnerabilities also find their way into government web applications. For example, security assessment of a web application for a Russian local government revealed SQL Injection, a critical vulnerability that could allow attackers to obtain sensitive information from a database.
(Source: Positive Technologies)
