Installment loans are those that are offered for the purchase of house hold equipment and consumer items. These are the loans that we avail to buy a TV or a laptop. A typical installment loan has monthly repayments and these always are equated monthly installments which are made up of both the interest and principal components. These types of loans are relatively easier to obtain and also have a wider range of term. The duration is usually a year or multiples of 12 months. The collateral for installment loans are usually the items for which the loans are for.

There are other types of installment loans which are offered to people with regular income who need temporary loans. These are not so different to bridge loans but the variance is in the repayment modes and loan amounts. Bridge loans deal with bigger amounts and the repayment is most often full and one time, whereas installment loans offer smaller loans with monthly or equated repayment options. These installment loans can also be offered with or without collateral. Bridge loans also have higher interest rates and are very rigid when it comes to repayment.

Nowadays, installment loans are available online and often, can be processed within a few hours. The loan amounts are typically small and can be utilized to purchase household items or pay bills. The loan amount is transferred to the borrowers’ bank account and can be utilized at their discretion. The online method of application is very convenient and is usually processed without a credit check. All that the borrower needs to establish is the ability to repay either via bank statements or through income receipts. Most of the people choose to go in for installment loans because of the hassle free processing, even in spite of higher interest rates.

People with bad credit, prefer installment loans to a bridge loan because they have a very high chance of getting approval. Also, these loans are more easily obtained than other types. The repayment terms are moderate and well suited to the needs. Most importantly, these loans are granted without any collateral, on an unsecured basis. The borrower is also free to utilize the loan amount as he pleases. Private lenders specialize in installment loans and quite often are very aggressive in marketing this product. Installment loans may be costly but they surely are easier to get.