A Beginner’s Guide to Getting 3-Month Payday Loans – What to Know
February 13, 2020Many people are inclined to apply for payday loans because they intend to pay the loan within a shorter period. However, a conventional payday loan is considered to have a relatively higher interest rate. A better option might be a monthly installment payday loan. It is an excellent option for people who prefer a staggered payment scheme to avoid substantial monthly installments. That means that the required monthly dues are smaller and more manageable.
To find out more about three-month payday loans, here is a helpful guide on what it entails and how to apply for one.
What Are Three-Month Payday Loans?
A three-month payday loan is better known as an installment loan. It is a short-term unsecured loan that has the same nature as a conventional payday loan. The difference is that it has a different timeline. As the name implies, the borrower is given three months to fulfill the payments in three equal installments. This makes it a flexible and convenient payment plan that fits the borrower’s financial situation.
What Are the Benefits of a Three-Month Payday Loan?
1. It has a more flexible installment plan
Compared to a conventional payday loan, a three-month payday loan offers a more flexible payment scheme. The conventional one is immediately due on the next payday. Meanwhile, the three-month installment plan gives a leeway to prepare the payment. This makes it more manageable instead of paying the full amount instantly. It also reduces the risk of being short on cash after the next payday.
2. It allows a higher loan amount
A three-month payday loan allows a higher loan amount because the repayment schedule is extended to three months. The longer timeline allows the lender to distribute the principal amount into smaller amounts. By securing a larger amount, the borrower has the fund to cover existing debts or pay for emergencies. This also allows the borrower to recover from bad debt.
3. It does not have any spending restrictions
Unlike a conventional payday loan, an installment payday loan does not have spending restrictions. Typically, other types of loans require a specific purpose for using the money. Lenders want to make sure that the fund is used only for that purpose. Luckily, an installment loan gives the borrower the freedom to budget the fund in their own way.
4. It has minimal requirements
A three-month payday loan is more advantageous to people who have a bad credit score, as most lenders do not require a good credit report or high credit score. A borrower must simply be at least 21 years of age with a valid bank account to be eligible for the instalment loan. Instead of a lengthy application process, the borrower only needs to submit proof of income along with his other identification documents.
5. It has a quick application process
This type of loan has a hassle-free and fast application process. Borrowers may receive the loaned amount within the next business day after approval of the application.
Conclusion
A three-month installment loan is a better option for covering financial emergencies and short budget gaps without the risk of drying out one’s funds. It also comes with lower interest rates, given the more flexible payment plan. If you’re looking for fast and reliable loans, go to Hoopla Loans today. We’re a new-age online loan platform that provides a safe and easy loan matching service in South Africa.