No matter who we are, sometimes life gives us more than we can financially handle. Even the wealthiest individuals can need a loan. So, if you need money to help meet your obligations, don’t worry. It’s normal.
The key is to educate yourself so that you know what sort of loans are available to help you. Specifically, let’s look at online loans.
Their convenience fits with today’s busy lifestyle. Who wants to waste an afternoon sitting in a bank when they could fill out an application while sitting on their couch at home?
Read our breakdown of popular online loans, and you’ll be ready to make your request for the funds you need to get you through a difficult period.
What Is an Unsecured Loan?
Online loans tend to be unsecured loans. An unsecured loan doesn’t require you to post collateral.
Collateral is an object of value that a lender would be willing to take possession of if you failed to repay your loan. Typical collateral includes jewelry and other luxury items, cars and trucks, and homes.
Because the bank doesn’t have any collateral from you with an unsecured loan, it’s likely to offer you a loan with a higher interest rate than you would get with a secured loan. However, you won’t have the threat of losing a valuable possession if you have trouble meeting your obligations.
Unsecured loans are available for many different purposes. So, lenders often refer to an unsecured loan by the name of its stated purpose.
Sometimes, the terms of the loans will differ depending on the purpose. At other times, the names are simply a convenient way to categorize the loans.
Let’s examine some of the unsecured loans often available online that you can repay in monthly installments.
Specifically, we’ll look at the following installment loans:
- Home improvement
- Car repair
- Debt consolidation
- Peer-to-peer
- Buy now pay later
- Bad credit
Home Improvement Loans
Because all homes will need repairs eventually, financial institutions have created several ways for homeowners to secure the needed funds. People can get money to update their houses with both secured and unsecured personal loans. Others might borrow against their mortgage.
Car Repair Loans
There’s no shortage of options for borrowing money when it’s time to buy a car, but where do you get the money when you need to repair it? That’s when many people turn to online personal loans that will allow them to use the funds to rebuild an engine, replace a transmission, or install a modern infotainment system.
Debt Consolidation Loans
It can be both physically and emotionally draining to keep up with several debts, each with its own payment schedule and method of making payments. How much better it is to have only one debt to pay each month. A debt consolidation loan makes that possible.
You can borrow enough money to satisfy multiple debts, which would leave you only with a monthly payment to the lender of the money you borrowed.
When considering a debt consolidation loan, do your math carefully. Make sure you’re comfortable with the terms. Is ridding yourself of several debtors now worth the time it will take to repay the loan?
For some people, the answer is yes. The peace of mind fast loans like consolidation loans can offer to make the arrangement highly desirable.
Peer-to-Peer Loans
Traditionally, loans involve financial institutions such as a bank. But there are online portals where people can borrow from each other without involving banks. Predictably, these arrangements are referred to as peer-to-peer loans.
Individuals loaning money on a peer-to-peer platform typically can’t accept as much risk as a large corporation, so they look to loan primarily to customers with excellent credit. This doesn’t mean that you can’t get a peer-to-peer loan with less-than-stellar credit, but you may need to do a lot of research to find the right platform.
On the other hand, if you have terrific credit, you might be able to snag a nice deal. Peer lenders don’t have the overhead of big institutions, so they typically don’t charge as much interest.
Buy Now Pay Later Loans
Buy Now Pay Later (BNPL) loans are loans that don’t look like loans to the general public. Most people who use the service may not even think of it as a loan.
But online payment platforms like PayPal allow you to make a purchase that’s larger than your budget. You don’t pay the total price upfront for the item. You pay only a fraction. You then pay the remainder in monthly increments.
For example, suppose you make a $200 purchase. You might be able to pay only $50 before receiving the item. You would then make three more payments of $50 each to pay off the balance.
But remember, this arrangement works like a loan. So, there are interest payments included.
A BNPL arrangement is so smoothly incorporated into the online buying experience that, as mentioned, it doesn’t even register as a loan to the average shopper.
Bad Credit Loans
Sadly, the people in most need of a loan are often those whose track records make them unattractive to most financial institutions. To service this segment of the public, many smaller lenders specialize in extending loans to people with bad credit.
The loans are considered risky, so lenders typically attach high-interest rates to them. Therefore, it’s important that if you fall into this category, you make plans to pay off the loan as quickly as possible. Otherwise, high-interest rates can eventually put you in a worse financial situation than originally.
Online Loans Are Waiting for You
When you need a short-term loan of $500 to $1000, consider Tekaloan. Our online application process is quick and easy. You can request the money you need in a few minutes and then get on with the rest of your day.
If you’ve been rejected by banks because of your income level, don’t give up. Instead, give us a try. If you have lingering doubts about your eligibility, don’t hesitate to contact us using our online form at Tekaloan.com.
Our terms are adaptable to your income situation. You can expect to repay our online loans in 3, 6, or 12 payments over three to five months.
If you need additional funds at the end of your term, you can always renew your loan. And you’re welcome to save on interest by making larger payments than the minimum required.
Don’t suffer the stress that comes with being short of cash. Get help by completing your application for a Teka loan today.