There are times when one faces a dire need of borrowing money either from someone close or financial institutions. Sometimes the amount we want to borrow is not big and we arrange it easily but sometimes it is quite large to be arranged at once. Especially when you ask someone from your family or friends, there is always a chance that they will not be having enough money or maybe they have to save for something big in their life.
Some organizations offer their employees the facility of lending loans to them, but it is also not easy to benefit from that facility. Now the only option left is borrowing from the financial institutions. Typically the bank loans are divided into two types of loans; secured and unsecured.
When you borrow some money from the bank, it means they are lending you a loan. They would want to be guaranteed that you would pay them back. For that purpose, they keep any of your assets as a security or collateral until you pay the entire amount by the set or agreed upon date.
Security or collateral that you are keeping as a guarantee of your ability to pay back depends upon the type of loan you are borrowing. For mortgage loans, the house is kept as a security. For car loans, the car which is being bought by the loan is kept as collateral. In both cases, if the borrower fails to reimburse the debt, the house and the car that was bought through loan is then sold to cover the debt amount.
On the contrary, there are types of loans that come with no requirement of keeping collateral or security. In these types of loans, the lender typically bases his decision on trustworthiness, your promise of paying back, and evidence of your constant income. Good credit history is usually required for these loans.
All these things combined give the lender an idea that the borrower can repay the amount within a set time limit. Personal loans, payday loans or student loans are usually the types that come under this category where no asset of yours is being kept as a guarantee.
What is an installment loan in Canada?
In Canada, installment loans reside in the middle of payday loans and personal loans. Usually, the amount lent in an installment loan is more than the amount that is typically lent in payday loans, and it is less than the amount lent in personal loans.
Generally, an installment loan consists of an amount of money that is lent to the borrower so that he or she could use it according to their need and then repay it through a regular schedule of the payment. The schedule is usually monthly based which means every next payment would be made at the start of each new month. But in Canada, the terms of payment schedule can be decided through mutual agreement between the lender and lender and based on the lender’s policies.
Installment Loans at Friendly Lender
In Canada, you will find plenty of financial institutions that offer this and other types of loans but it is often hard to pick the right institution with which you can have a smooth borrowing experience. Therefore, to make the whole process of finding the right lender easier for you, Friendly Lender provides a safe and secure platform to both lenders and borrowers. There you can easily get connected to the direct lender and request for the installment loan online.
Everything at Friendly Lender is super smooth and easy. You can apply for the loan without having to go out as the whole process is online and pretty fast. They provide their services in getting you connected with lenders who lend short term loan therefore their installment loans are usually like payday loans for being short term. They differ from payday loans in terms of not being repaid in a lump sum as they are repaid monthly in the form of installments.
Friendly Lender promises you a really simple process of application that consists of only a couple of information requirements. They pride themselves in serving as a loan matching company that connects lenders and borrowers through highly secured channels.
You can apply for up to a thousand dollars and the minimum you can apply for is a hundred dollars. At Friendly Lender, there are direct lender partners that run a soft credit check which is a non-traditional type of credit check and usually does not have an impact on your credit score.
Benefits of Installment loans
There are so many benefits of applying for an installment loan in comparison to payday loans and personal loans. First and foremost is the easy payment schedule designed according to your convenience. You are not required to pay back the loan in a lump sum on the next paycheck you receive -which typically means that you have only a month to pay off your debt. Instead, a schedule is devised which is consists of regular payment in the form of installments. So if you are not able to repay the entire amount because of other financial needs, you can pay it off bit by bit.
The second most convenient thing about these loans is that you are entitled to pay off a small portion of the loan regularly in a predecided duration, which is usually several months or sometimes a whole year. Therefore your loan amount keeps getting shorter which ultimately reduces your stress as you know by this date or time, you would be free from your debt.
Lastly, the maximum amount which you can request for a loan is 1000 dollars, which is sufficient to cover your major emergency expenses. You can even fill up the lacking amount in your fee savings. You can pay for your utilities and any expenses that occur when you are short of money and do not have other means of arranging funds.