Several factors play an important role in a loan. Of course, the best-known are the respective interest rates. The higher the interest rate, the greater the financial burden on the borrower. For this reason, people who are looking for a cheap loan prefer the profitable offers of direct banks on the Internet. Not only the interest, but also the term plays an essential role in a loan.
If a loan is only used for a term of one to two years, the monthly installments are of course relatively high. If you do not have a sufficient salary and have to cope with a very low income month after month, you need a very long term. While normal banks generally do not offer such an option at all, direct banks also offer a 120-month loan.
The advantages for the borrower are serious
With a loan with a term of 120 months, the extremely long term ensures a very low financial burden. Borrowers with no permanent job or people who are unemployed naturally benefit the most from such a loan. Even if these people had a real chance of being approved by a local bank, they would still not be able to choose such a long term.
In addition, the unemployed, students, self-employed and also low-income earners face a fundamental problem. Without adequate collateral such as a fixed salary, they would not be granted a permit by a local bank. However, if a loan with a term of 120 months is taken out from a direct bank on the Internet, alternative collateral also works, such as a property or a guarantor.
The monthly rates are individually adjustable
Anyone who has decided on a loan with a term of 120 months can significantly reduce the monthly charge due to the extremely long term. Even a large sum of money, such as 8,000, 10,000 or even 15,000 USD, can be conveniently paid off over such a term. In combination with the relatively low interest rates, for which the internet banks are mainly known, there is a monthly charge that is unconditionally suitable even for the unemployed or poorer people.
Since the loan with a term of 120 months can be conveniently drawn up via a simple online application, the borrower incurs neither additional fees nor a greater amount of time. An application usually only takes a few minutes and is immediately sent to the respective direct bank via the Internet. The latter can usually check the application on the same day and decide on an approval.
An overview of the convenient installment loan
A credit with a term of 120 months is granted by most direct banks on the Internet and is also granted relatively easily. If the borrower can convince the selected bank of its collateral (for example, a guarantor or a property), there is usually nothing to prevent an approval. The period from approval to payment is relatively short and ranges from 2-3 days. For a loan with a term of 120 months, the financial burden due to the low interest rates (3-6%) and the extremely long term is clearly limited.