The vast majority of loans made to borrowers are instalment loans. Whether for personal or business purposes, most of them qualify under this category. Any loan that is paid back in planned instalments is considered an instalment loan.
As the name suggests, an instalment loan is simply a financial product that you can repay in instalments over a period. Generally, people who have large expenses to borrow an instalment loan as it allows them to make the payments in fixed monthly instalments. The credit provider will set an interest rate on the loan that you decide to borrow. The rate of interest depends on a variety of factors. Some of the most common factors that will be assessed by the lenders are your income, expenses, debt-to-income ratio, credit score, loan amount, term, and current employment status.
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Loan Amount
£4000 -
£20000
Norwich Trust
Loan Term
1 -
10 years
4.8/5
Representative APR
22.9%
Minimum Age
21 Years
Representative Example If you borrow £20000 over 72 months, your representative APR will be 22.90% APR. Your monthly repayments will be £488.36 and the total amount repayable will be £35,161.92.
4.8/5
Norwich Trust
Loan Amount
£4000 -
£20000
Loan Term
1 -
10 years
Representative APR
22.9%
Minimum Age
21 Years
Minimum Income
£2000 per month
Representative Example If you borrow £20000 over 72 months, your representative APR will be 22.90% APR. Your monthly repayments will be £488.36 and the total amount repayable will be £35,161.92.
Loan Amount
£5000 -
£100000
Evolution Money Loans
Loan Term
1 -
20 years
4.5/5
Representative APR
28.96%
Minimum Age
18 years
Representative Example: Loan Amount: £20950.00, Loan Term: 85 Months, Interest Rate: 23.00% PA Variable. Monthly Repayments: £537.44. Total Amount Repayable: £45,682.15. This example includes a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00
4.5/5
Evolution Money Loans
Loan Amount
£5000 -
£100000
Loan Term
1 -
20 years
Representative APR
28.96%
Minimum Age
18 years
Minimum Income
Not mentioned
Representative Example: Loan Amount: £20950.00, Loan Term: 85 Months, Interest Rate: 23.00% PA Variable. Monthly Repayments: £537.44. Total Amount Repayable: £45,682.15. This example includes a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00
Loan Amount
£1000 -
£10000
1Plus1 Guarantor Loans
Loan Term
1 -
5 years
4.4/5
Representative APR
47.80%
Minimum Age
18 years
Representative example: If you borrow £3000 over 36 months at a Representative rate of 47.8% APR and an annual interest rate of 39.7%, you would pay 12 monthly installments of £143.84. The total charge for credit will be £2178.24 and the total amount payable will be £5178.24.
4.4/5
1Plus1 Guarantor Loans
Loan Amount
£1000 -
£10000
Loan Term
1 -
5 years
Representative APR
47.80%
Minimum Age
18 years
Minimum Income
Not mentioned
Representative example: If you borrow £3000 over 36 months at a Representative rate of 47.8% APR and an annual interest rate of 39.7%, you would pay 12 monthly installments of £143.84. The total charge for credit will be £2178.24 and the total amount payable will be £5178.24.
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How do these Instalment Loans work?
When you borrow an instalment loan, you agree to repay it in fixed monthly repayments until you pay off the entire amount that you’ve borrowed along with the interest. The repayment period of the loan may last for years and sometimes for months. Choose your repayment period carefully keeping in account your affordability.
You will have to fill out an online application form with necessary details such as your address, employment status, income, expenses, how are you planning to spend the funds if you receive (purpose of the loan), and the loan term. This can be done in minutes.
Once you apply, lenders will assess your loan application and they will inform you of their decision after a careful assessment. Your creditworthiness will be reviewed to determine how much the credit provider may lend you and at what terms.
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Types of Personal Instalment loans
Instalment loans are generally categorized into two types – secured loans and unsecured loans. Secured loans are those that you can borrow by securing against your property. That means you will be using your home as collateral to borrow a secured loan.
While with an unsecured loan, you can borrow money without providing any collateral to the credit provider. If you make payments in instalments over a specified period, then your loan is an instalment loan, irrespective of the type.
Auto loans, home loans, personal loans, and student loans are examples of other common instalment loan types. Almost all instalment loans are fixed-rate loans. This means the interest rate charged during the loan’s term is fixed at the time of borrowing. Except for – the mortgage.
Mortgages can occasionally be variable-rate loans where the interest rate increases during the loan’s period.
Personal loans
These are instalment loans that you can repay over time in fixed or variable monthly payments. Whether you will have to pay in fixed monthly instalments or variable instalments depends on the type of interest rate that you have agreed to. You can use a personal instalment loan for a variety of reasons including wedding and home improvement. As this is an unsecured form of borrowing, the rate of interest is comparatively higher than a secured loan.
Mortgage
When you take out a mortgage, you agree to pay the lender money along with interest every month till your mortgage is paid off. This is also an instalment loan as you are repaying the debt in parts. If you fail to repay your monthly mortgage payments, the lender may take possession of your property. They may sell it off to recover the money they owe to you.
These are two of the most common types of instalment loans. Now that you understand the differences between personal instalment loans and mortgages, we can go deeper.
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Pros and Cons of personal instalment loans
With regard to the loan amount and repayment period that best suit the borrower’s financial situation. Personal instalment loans are adaptable and simple to customise to the borrower’s unique demands. With these loans, the borrower is able to acquire funding at an interest rate that is significantly lower than what is often offered with revolving credit financing, such as credit cards. By doing this, the borrower can avoid making a sizable cash outlay and instead maintain more money on hand to use for other things.
Pros:
- Ability to finance big purchases
- Payment amount typically stays the same throughout the loan term
- Usually possible to save interest charges by paying off loans early
Cons:
- Loan fees can be high
- Credit can be damaged due to late or missed payments
- Potential to borrow more than needed
Personal instalment loans and credit score
When you borrow a loan, the credit provider sends information to the credit bureaus. All your activities surrounding the loan that you have taken are recorded and sent to the bureaus for an update. The credit bureaus update your credit report according to the information they receive from the lender.
One of the best ways to improve your credit is to repay instalment loans on time. Your credit score is mostly influenced by your payment history, and a long history of prudent credit utilisation is advantageous to your credit score.
If you don’t make your payments on time or you default on the loan. That will also raise a red flag with lenders and lower your credit score.
Personal instalment loans comparison
Loan comparison can help you make the best decision when it comes to choosing a loan.
No matter what loan you want to take, comparing loans is often the smartest thing you can do!
You need to check your eligibility rate to compare loans from multiple UK lenders. Then you need to sort it out manually… Just to find the best loan deal for you.
This can take a whole day, maybe even a full week. It is an unimaginably daunting process, especially if you have a problem with numbers.
Nevertheless, this still is the safest thing and it is almost mandatory.
Going for the first loan that you see is like buying a random, old car…
The chances of it being an amazing deal are really slim…
But there is a method that can fix this. It makes loan comparison as easy as ABC and you do it in just 3 simple steps…
Click here to get a Personal Instalment Loan in minutes!
Why use LoanTube?
LoanTube is an online loan comparison service based in the UK. It was created to save people as much money as possible. To prevent them from the sales tactics you encounter daily… Online services are the fastest way to borrow personal instalments loans. It may actually be the best option (although we’re not saying it is, we encourage you to always go through your options carefully).
Although we can’t guarantee we’ll find you a lender, you really do have better chances of finding a suitable loan with us because we work with multiple UK-based lenders.
Comparing loans with us is done in three simple steps and you can finish everything in just a few minutes, getting the best deal out of all the deals from our lenders offers.
This is possible because the internet is extremely fast and extremely efficient, our state-of-the-art methods utilize and amplify the power of the internet to find loan offers as fast as possible.
Comparing loans can potentially save you hundreds of pounds, depending on the loan you want to borrow. Without further ado, you can check your loan options and use our modern loan calculator to search through personal instalment loans.
We do soft credit checks only, to make sure your credit score doesn’t get affected.
To start your application for a personal instalment loan, please click here.
Remember that our service comes at no charge to you and that you don’t have to accept any of the quotes we provide you with if you don’t like them.
