An installment loan or all-purpose loan has the great advantage that you are not obliged to prove what you want to use the money for. Whether you have to pay overdue bills, buy an old car, have a trip in mind or just do everyday shopping, you can do it all with an installment loan. The disadvantage of this type of loan is the high cost that is involved. Because you are not obliged to prove where the money is going, there is no collateral. This means that the lender runs a higher risk and will therefore charge you a higher interest. The conditions in terms of maximum amounts, term and approval of your loan will often be stricter than with a mortgage loan or a car loan .
How do you proceed to determine an installment loan?
First and foremost, you need to determine how much money you want to borrow. You can do this in two ways. Either you start from the amount that you can afford to lose each month or from the amount that you need. In the first case, you can use an online simulation to determine how much the total amount is associated with this monthly amount, depending on the loan term. You will then also get an idea of the cost price associated with a certain amount and a certain period. In the second case, you enter the total amount and check which term you should choose to be able to make your monthly payments.
Apply for the installment loan
The installment loan is offered by almost every financial institution. Since the purpose of the installment loan does not affect its acceptance, you only need proof of income and expenditure. The balance between the two determines the amount you can borrow. There are no set rules or fees set for an all purpose loan and both can therefore differ greatly from one lender to another. To ensure that you make the best choice, it pays to request a few loan quotes here.