What Exactly is Installment Payday Loans Direct Lenders?
As mentioned earlier, installment payday loans direct lenders are companies that provide direct loans to borrowers without the need of any middleman or third party. Direct lenders are usually the best way to secure an installment loan because of the nature of this type of loan. Although there are lots of direct lenders in Canada, getting a reliable firm especially if you are a first-timer. But with the internet at your fingertips, you can make thorough research on lenders around your vicinity. One way to know how good the services revered by a lender offers is by browsing through the company’s reviews.
And when choosing a direct lender that suits your needs, ensure that your preferred firm is licensed in Canada. Request proof of license from any lender that you decide to use and make sure you are very clear on the terms.
How do Installment Payday Loans Work?
When you decide to take an installment payday loan, you want to borrow a sum of money that can range from $1,500 to $10,000. The sum borrowed is repaid over an agreed-upon period which could be months or years and at set intervals (weekly, every two weeks, monthly, etc.)
Most installment loans usually last for about 6 months to five years, but they can be more or less depending on the agreement. Installment payday loans are not very long-term loans, they are more like medium-term. That is, compared to traditional bank loans.
Features of Installment Payday Loan Direct Lender
Direct lenders have specific features that work for only their firms. But there are some general features that every installment direct lender has:
Rate of interest
Direct interest loan lenders usually offer an interest rate that can range from 6% to 45% depending on the amount you wish to get and your But note that the longer the duration of the loan refund, the higher the interest rate.
Credit check rating
installment plan lenders most times don’t require a good credit check like traditional financial institutions before they give out checks. You do not need to worry about direct lenders making credit inquiries about your finances.
Flexible refund time
installment payday loan lenders don’t expect payment by your next payday. Direct loan lenders in Canada offer a super flexible time range. Amounts from $500 to $5000 can take up to 24 months before they get refunded. That is, depending on the terms and agreement of the loan.
Good time efficiency
Installment payday loan lenders know how important it is to be on time which makes them deliver their services swiftly. Once a direct lender approves your loan, you can expect the funding to be done in 24 hours. Direct loan lenders take a maximum of 24 hours to send funds.
Eligibility Requirements Necessary for Installment Payday Loans
Different installment loan lenders have different requirements that are specific to just their organization. But, some of the basic requirements for every lender are:
- You must be a Canadian citizen or a permanent resident.
- You must be at least the age of majority in your province.
- You should have all necessary documentation necessary like proof of income, current bank statement, etc.
- You should have an active bank account that has an option of direct deposit.
- You must have a legal, steady source of income.
Advantages of Installment Payday Loans
Installment payday loans provide a lot of benefits to their borrowers. Some of the main benefits enjoyed by borrowers are:
- The short-term loans have a low annual percentage rate.
- Loan approval time is usually short.
- Swift loan funding.
- You can extend your loan terms.
- Borrowers with no credit rating and bad credit rating can apply for installment payment loans.
- The application process is simple and easy
Are There Other Alternatives to Installment Payday Loans?
In a situation where you don’t want to use an installment payday loan, there are other alternatives that you can use:
Mortgage equity: You can put up your home as collateral, borrowing up to the amount your home is worth when it is valued.
Credit unions: you can get your funding from credit unions although they are not as secure as traditional loans.
Secured loans: you can apply for a loan, using some of your properties as collateral to the lender.
Conclusion
Installment payday loans are a great idea to consider if you need quick funding and enough time to pay back what you borrowed. Before you decide to apply for a loan, make a thorough checkup on the lender you wish to use. There are many lenders in Canada and it is better to make your findings to enable you to choose a trusted lender.