We regularly receive questions about the different forms and names of loans. An installment loan, a car loan, a mortgage loan, a personal loan, renovation loan, signature loan, and so on. A lot of types and types of loans. In this article we look in more detail at the characteristics of the installment loan.
Characteristics of the installment loan.
To present things as simply: for those who are going to borrow money there are actually three major forms of loans. This is of course about borrowing from a bank or other accredited credit institution.
- First and foremost we have the mortgage loan. With this form of borrowing, the lender takes out a mortgage on a property. If the debtor defaults, the property can be sold. The interest rate of this loan is among the best on the market. The lender has a strong guarantee. It can be interesting for debtors to review the mortgage loan after a few years.
- A second form of borrowing money is the installment sale or financing. In this case, the borrowed money is used to purchase a movable property. This often concerns the purchase of a car, a motorhome or motorbike or smaller items such as a television, music installation, etc. The sale or payment is concluded via a credit broker or directly in a store where the goods were purchased (for example: electrical store, car dealer) , ..).
About the installment loan
- The third form of borrowing is the installment loan. In this case it is not about purchasing a tangible good. For example, it may be a loan for a trip, a wedding, an operation, etc. The money is made available to the applicant and he can spend it as he or she wants.
- With a loan application, banks and lenders often ask what the money will be for. They do this to better estimate the risk of the application.
- A renovation loan or refurbishment loan also falls under the installment loan. Some of them are tangible goods such as the purchase of building materials, wallpaper or stairs. However, a large part of the budget is often spent on intangible things such as working hours worked.
- A very specific variant is the installment loan with a mortgage guarantee. In this case, the applications will receive money in the form of an installment loan. At the same time, the creditor takes out a guarantee in the form of a mortgage on a property. This is the way of working that is used for people who are blacklisted and want to borrow money. It is only possible for those on the blacklist with ownership to still borrow
- Many loans fall under the installment loan. A personal loan, renovation loan, loan for a communion celebration, holiday loan, relocation loan, etc. The underlying principle is always the same. The rates can sometimes differ. For example, it is classical that for loans for renovations and renovations there are special offers in the period of a building grant. There are many online options for finding a cheap personal loan, for example. Moreover, you can easily calculate the monthly amount of a loan.
Are you looking for an interesting loan? You will find a lot of info on our website. We are also happy to refer you to websites where you can do a simulation and possibly submit an online application.