Installment loans are often flexible, and they can be used for either personal or commercial purposes. It is a type of loan that allows you to borrow a specific amount of money for immediate use.
When you decide to get installment loans in Atlanta, GA, you'll have to return the funds that you and your lender agreed on over a certain period. Payments are usually made monthly; however, some agreements may differ.
Each payment you make is known as "installment," hence why it is referred to as an installment loan. Every payment will also comprise paying the principal amount of the borrowed money and the interest rate on your loan.
If you avail of an installment loan, it can be paid back over months or years. The interest rate might also be fixed or adjustable, raising or falling for the loan term. This can also incur additional expenses, such as application or late fees, so it's essential to review your contract to check how much you'll have to pay back.
Secured vs. Unsecured Loans
Installment loans are classified as either unsecured or secured. Getting an unsecured loan doesn't require any form of collateral, meaning all you need to promise is to repay the borrowed funds once they’re due. In contrast, secured loans require a specific form of collateral, such as property and vehicles.
Different Types of Installment Loans
1. Mortgage Loans
A mortgage is a type of financing for purchasing a house. Because your home itself is collateral, your lender may take possession of it if you're unable to settle your monthly payments. Mortgages are primarily available over 10, 15, or 30 years, with the interest rate being either fixed or adjustable. If your down payment is less than 20 percent of the home's worth, you might have to pay for closing expenses and private mortgage insurance for your lender’s protection.
2. Auto Loans
Like a mortgage, auto loans use your vehicle as a form of collateral. If you don't make your payments on time, your lender can repossess your car. A down payment is usually required for car loans. The more money you pay in advance, the lower your monthly payment will be. The typical term length of a car loan is 36 to 72 months, but other car loans have longer period terms.
3. Personal Loans
Many people use personal loans in Atlanta, GA, for various reasons, but common ones include paying off debt, making a big ticket purchase, or covering emergency expenses. Most personal loans are unsecured, so they aren't backed by collateral like a house or a car. As a result, personal loans often come with high-interest rates.
The unique details of your loan agreement will largely depend on your credit history, debt-to-income ratio, and your lender’s own regulations.
Installment loans can help you achieve your financial goals, such as purchasing a home or completing your degree, by allowing you to repay a large amount over an extended period. It's important to make payments on time and eventually pay them off entirely so that you can boost your credit score.
Located in the heart of downtown, Central Loan & Finance has served the wonderful city of Atlanta since 1967. We believe in the value of strong relationships, especially in times of need, and our approach to lending is through an understanding lens. Do you need help with getting installment loans in Atlanta, GA? Give us a call today!