An installment loan allows you to spread repayments over several months, or installments. This gives the customer the flexibility to repay over a longer period of time, so they can get their finances in order and not feel the pressure to pay the entire loan back immediately, like with a payday loan.
This type of product can be unsecured or secured (with collateral), depending on the loan amount, the duration and the customer’s credit rating.
Loans with installments can be just a few weeks, or several months – and Pheabs gives you the option to choose how long you would like to borrow money for, whether it is 9 months, 18 months, 36 months or the maximum of 60 months (5 years).
You always have the option to repay early if you would like, so if you find that after a couple of months or half way through the loan term that you would like to clear your account, you can certainly do so – and you will save money overall since less interest has accrued.