Installment
loans are nothing but the personal loans. In such loans, borrowers receive a
lump sum amount and repayments can be made on certain specific time bound
intervals. Repayment is usually done on monthly intervals and fixed interest
rate is accrued.
Installment loan can be secured or unsecured. In case of secured installment
loan, any collateral such as your house or car can be used as a guarantor and
if the borrower fails to repay the amount, lender can seize the collateral. On
the contrary, unsecured loans do not
require any guarantor. Also, these loans are available in poor credit score
situations. Installment loans for bad credit situations are found to be risk
free because even if you are unable to repay the loan, there is no loss of
assets. However, if you default on repayment, you end up damaging your own
credit score.
Greater
risk factor is involved in case of installment loans
with no credit check, as you end up paying more interest in order to
compensate future damages, which are probable due to non-repayment.
These
loans are usually meant to solve the problem of individuals striving to
overcome personal needs; however, start up business can be established with
such loans as well. In case of unsecured loan, flexible repayment and no
collateral option sounds beneficial in case of new business ventures. Unsecured
business loans for bad credit conditions are available to people, who
are willing to set-up their businesses in spite of their poor credit history.
In
such loans, borrowers will have the option to repay the loan within certain
time frames –term varies from few months to many years, depending upon the
amount borrowed. In case of unsecured
loans, your interest rate will be higher in comparison to principle
amount. Time frame of the loan is calculated on the total amount. If you have
applied the loan for establishing the business, amount may be on higher side,
and time frames extend. However, amount of financing would be less if you have
taken it to resolve any personal financial problems and in this case, the time
period is calculated on amount.
Application
procedure for unsecured business loans for start-up ventures, have become
hassle free as loan brokers are there to guide your way. With the help of easy
repayment options, you do not feel tied up under the burden of loan, and can
smoothly run your business.
