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Anatomy of a Personal Installment Loan

By Finserv MARKETS - May 2,2019
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Anatomy of a Personal Installment Loan

Many a times, when you are in need to finance to make a purchase or require funds to take care of a financial emergency, you are most likely to consider personal loans as one of your funding options. In fact, personal loans are a good choice for many reasons. Not only can you secure a personal installment loan faster, but the application process is quite simple too.

This article guides you through everything that you need to know about fast personal loans, along with the tips for your loan application and loan payoff.

How Do Installment Loans Work?

As the name suggests, installment loans are the type of loans where you can borrow a fixed amount of money and agree to make scheduled payments (installments) until the loan amount is paid off.

They tend to have a longer payoff period compared to some other loan types. In fact, the payments made are the same for the duration of the loan (except for the last payment). These two aspects make the installment loans a more manageable loan option. A personal loan is most likely to be a short-term loan that can range from a few hundred rupees to a few thousand. The amount solely depends on your needs and qualifications. The money acquired from the short-term installment loans could be utilized to pay bills, cover any financial emergencies or make a special purchase.

Unlike most other loan options, the interest rates on the installment loans are fixed. Your lender should be disclosing all the fees so that it won’t come as a surprise for you later. Short term installment loans are usually easily secured and you do not even need to have an outstanding credit to qualify. In fact, you may not need to have any credit history to secure these loans.

How To Qualify for Installment Loans

Qualifying to secure a personal installment loan is much easier than most people think it is. A personal loan is an unsecured loan, mainly because they are not ‘secured’ by any collaterals (such as a car or a home). Because of this very reason, they are sometimes even called signature loans.

If you are applying for a personal loan online, the application process is very easy (since no in-person visit is required). All you must do is simply complete an online application and meet a few requirements for the loan.

The applicant should be of the age 18 years or older and a permanent resident of India. You are required to have a phone number and a working email address. Also, make sure that you have an active bank account in good standing and a steady, verifiable income every month.

The loan terms tend to depend on various factors, such as

  • Your income
  • The length of your employment
  • Other credit information

Once your loan application is approved by your lender, you will receive the loan terms.

Paying Off Personal Loans

When you take a personal loan, paying your loan amount should be your top priority. If you choose to make payments by direct debit, your lender is most likely to set up periodic payments that are automatically debited from your bank account. This auto-pay feature is beneficial as it helps you manage your spending and avoids late payments on your loan.

Conclusion

There are many different types of loans to choose from when you need an immediate influx of money. Some are just better than others are.

Bajaj Finserv Personal Loans from Finserv Market are custom-made to suit your requirements. The process is fast, easy and requires minimal documentation. What’s more? Your online personal loan application can be approved under just 3 minutes and the loan amount can be credited to your bank account within just 24 hours! So why wait? Apply for a Bajaj Finserv Personal Loan with us, today!

Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere!

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522