With the advancement of the banking industry and financial sector, the installment services have become increasingly popular. Simplicity in operation, the absence of a monthly commission, and the ability to procure goods right now – all these make this service highly popular and widely applied around the world. What is the service of the installment loan, which features has it got, and which essential info are you to be aware of? Find all the answers in this post.
Issues to Consider When Requesting Easy Installment Loans?
Before entering into an agreement for installments, you should consider the below nuances of the agreement:
- Terms of returning the purchased goods: check if it is possible to make a replacement or refund during the warranty period;
- Overpriced product: many stores intentionally inflate the price of goods and offer to buy them in installments, thus, attracting customers.
As a rule, the main characteristics of interest-free installments cover the following ones:
- No monthly fee;
- The installment period can be from 6 to 36 months;
- The minimal fee is defined by the requirements of the store you are buying from.
The agreement for arranging the installment deal contains the below clauses:
- Details of the seller and the buyer;
- Full name of the product (model, item number, etc.);
- Availability of down payment (if necessary);
- A payment schedule by months and a total sum, inclusive of advance payment, to be covered;
- A full list of payment methods.
Considering the fact that only two parties (a shop/ manufacturer and a client) usually participate in the procedure of setting up installments, data on the transaction do not enter the Credit History Bureau. Therefore, this data can not be used against the client or affect the subsequent treatment of him in the bank for a loan being taken and not fully paid back.
Significant Perks of the Service?
Since the installment service is a simplified loan option, it has a number of advantages:
- Easy procedure: for the conclusion of the transaction, the store requires a minimum number of documents, and the decision on the payment of installments occurs within 5-10 minutes;
- Lack/ absence of interest: this criterion often becomes key when a client selects a service that allows him or her to procure an expensive product. Thus, one can pay the total value in parts;
- The possibility of return or exchange of goods in the store.
These all make people across the globe use the installment services, without covering any extra interests for the loan.