Installment loans are a good option for those who do not want to take a loan from fast-loan companies or are drawn with installments for many years.
A loan of one year is suitable for those who need to borrow cash quickly but at the same time do not want to tie up with refunds over several years.
A new way is to borrow directly from other private individuals.
How to find the best installment loan?
If you want to take a loan of 12 months, make sure you get the best possible offer so that you pay as little as possible in credit cost.
With so many offers on the market, by comparing the options, it is carefully finding the best loan and squeezing the price of the money.
The main cost of taking a loan over 12 months is the interest cost or the effective interest rate.
The lower the effective interest rate, the cheaper the installment loan will be. In addition to the direct interest rate, the effective interest rate also includes all other costs such as setup fee, newspaper fee, etc.
Lenders must provide a representative example of what an example customer may pay for a loan in terms of effective interest.
However, any offer that can be made to an individual who applies for a loan depends on the amount of the loan and the applicant’s creditworthiness. The cheapest way to borrow different amounts simply depends on how big the loan is.
Therefore, it is important that you find the cheapest installment loan for your particular personal circumstances so that you pay the least possible fees.
If you intend to submit a direct application with answers directly on the screen, it is first to check that the offer meets all requirements and needs.
One year loan
Which is the best one-year loan varies depending on how much money you want to borrow.
It is often the case that the more you borrow the lower the interest rate, the best prices are generally offered on slightly larger loans of SEK 100,000 and upwards, but nevertheless it is never a good idea to borrow more than you need.
Instead, you need to calculate exactly how much you need to borrow and look for the cheapest loan for that amount.
Can you borrow?
Often, strict criteria apply to the cheapest loans from banks and major lenders, but if you have a strong credit rating and high regular income, you are best at turning to the usual lenders because they provide the best conditions for those granted loans.
However, anyone who does not have a spotless credit report can still get an affordable yearly loan.
Make sure to check the application criteria for each loan before applying and make sure to provide as much information as possible.
If you have a bad credit history or have been neglected with previous loans or credit cards, you may need to consider looking at pay-as-you-go loans that are significantly more expensive but still available.
Although these loans are more expensive these lenders nevertheless consider applications from bad credit rating borrowers instead of just declining the application straight away.
Twelve month loan
Most small loans for 12 months are flexible and can be paid back in advance.
However, the cost of early redemption may vary between companies so if you think you might want to repay your loan early, you need to check exactly how much this would cost.
The way in which greater flexibility with the possibility of early repayment is important and in some cases worth paying extra for, or if you simply want to find the cheapest loan with a fixed repayment period of 12 months.
Once you have determined exactly what you need, you can compare the loans in the comparison table above to find the best deal.
A one-year loan is a financing or loan program that is structured to be repaid at or before the end of a calendar year from the day the loan was issued. A one-year private loan is an unsecured loan, but a one-year loan can also be provided against collateral in an asset that is pledged to the lender as collateral for the money being repaid. If a borrower misses payments on a secured loan and cannot complete the repayment, the lender may claim the pledged asset and sell it to settle the debt. Typical examples of one-year loans with collateral are car loans and mortgage loans.
Credit and approval requirements for installment loans
All loans regardless of size and repayment period require a review of the applicant’s credit history before a loan application can be approved.
According to the law, credits may only be granted to persons who are deemed to have the opportunity to repay the loan.
However, many one-year consumer loans are also available for people with a weaker economy.
Most installment loans require a taxable income that is included in the last year’s declaration.
For those who are newly employed, the application can be supplemented with an employer certificate in which it must be stated employment time and salary.
What distinguishes an installment loan from a 90-day, six-month or three-year loan?
The repayment period has a large impact on the monthly invoice and on the total cost of the loan. Assuming that interest amounts and interest are equal, a longer loan means a lower monthly cost.
This is because the repayment is divided into several smaller payments.
The other side of this equation is, unfortunately, that long-term loans mean higher total costs. Even if interest rates remain the same, the interest is paid for a long time.
Each additional day, week or month entails additional interest expenses such as the borrower having to pay for the loan.
For some borrowers, the one-year loan can offer a good balance that extends slightly longer than very short-term loans (such as SMS loans or mortgage bank loans) and at the same time does not involve monthly bills for many years to come.
The borrower will be required to pay off the loan within one year – and only needs to pay one year of interest expenses.