Category: Installment Loans

27
Sep

What is an Installment Loan


Everything You Need to Know About Installment Loans


Everything You Need to Know About Installment Loans


What is an installment loan?


Installment loans enable you to borrow money over a fixed period and make regular, fixed monthly payments that include your loan principal plus interest.


Installment loans help you borrow a fixed amount of money deposited into your bank account in a lump sum. You pay back your installment loan over time, usually in 3 to 48 months.


Your interest rate is fixed for the term of your loan. 


You make regular monthly payments to your lender. This monthly payment includes both the loan principal and the interest. 


Most installment loan lenders run a credit check on you before agreeing to fund your loan. 


PaydayLoanIndustry.com’s lenders serve subprime, underbanked folks. Often our lenders do not run credit checks. They are more interested in your job criteria. 

1] How long you’ve been on the job

2] How much dollars do you have at the end of the month

3] How secure your income is

4] Do you owe other lenders money

Installment loans enable you to always know what to expect when your monthly bill is due.


Installment loans come in many forms. Although they operate similarly, each type comes with different features, loan purposes, and average interest rates.

Installment loan proceeds are provided in a lump sum and can be used to fund various needs.

1] Car repairs

2] Home improvements

3] Consolidate higher interest credit card debt.”

4] Medical expenses

5] Apartment rental deposits


Where to apply for an installment loan Simple! Right here: Payday Loan Industry
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28
Apr

Installment Loans vs Payday Loans. What’s the Difference?

Installment Loans vs Payday Loans. What’s the Difference?

I get at least one call every day along the lines of, “What’s the difference between a payday loan and an installment loan.”

They say a picture is worth a thousand words so here you go.

Typical Installment Loan Breakout from Page 248 of our “How to Start a Personal Loan Business:”

Consumers borrow between $300 and $1,200.

The standard repayment schedule for installment loans offered is 20 payments over the course of 10 months, with one payment made every two weeks.

For each installment payment, a consumer must pay a “service fee” (often $30 for every $100 of principal outstanding) and five percent of the original principal.

As a result, lenders typically offer loans with annual percentage rates of between approximately 440% and 950%.

For an $800 loan, a typical loan contract requires the consumer to repay a total of approximately $3,320 over the course of ten months.

The following excerpt is from a typical loan document prepared for an installment loan in the amount of $800 originated by a lender and made to a borrower:

NOTE: For an in depth discussion and sample docs and contracts, visit PaydayLoanUniversity

Installment Loan vs Payday Loan

Installment Loan vs Payday Loan from “How to Start a Payday Loan/Installment Biz.”

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21
Sep

Installment Loan Profits: The Business of Installment Loans

Installment Loan Profits

An installment loan business offers tremendous opportunity BUT there are caveats. The first is the implementation of the 36% APR that many consumer advocates propose.

A $500 installment loan for a period of six months at a 36 percent APR produces total revenue of $53.79; just under $9 per month. If just one loan in a portfolio of these installment loans default, the installment loan lender must make ten “good” loans to recover their loan principal on the one bad loan, without considering operating costs on any of the installment loans in their portfolio.

installment loan business

To the tune of “Everything’s gonna be alright.”

The installment loan lender still requires enough revenue to justify obtaining and maintaining the lending location or internet platform, customer acquisition costs, hiring and paying their installment loan employees, acquiring the supplies and equipment required to run an installment loan business, the costs of maintaining ACH, loan management and Image Cash Letter (ICL) vendor relationships, securing a dependable bank account and all its attendant costs, and complying with the regulations both at the state, FED and or Tribal level.

A DAUNTING TASK, 36%? I Guess the so-called consumer advocates whose agenda is <36% APR’s would like to see installment lenders make it up with volume 🙂

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