Payday loan lenders have been expanding and diversifying their loan products available on the short term financial market in an effort to appeal to consumers across the board. Low interest rates payday loans are just one of several different payday loan products becoming available to the online consumer.
Installment Payday Loans Usually Carry Lower Interest
Installment payday loans offered online to consumers are usually the products with low and competitive interest rates. Offering repayment plans over periods of three to six months, they produce less risk for both the lender and consumer. With the extended repayments a lower interest rate for this type of short term loan can b offered. Of course interest rate is low when compared to an online instant cash payday advance or a bas credit loan. The lower interest rate is appealing to the consumer who can’t afford an immediate lump sum payment on their next paycheck. The installment loan and attractive interest rates make this type of payday loan attractive and it is easily budgeted for in the consumer’s financial planning.
Online installment payday loans are processed using the same 3 step process of many of the short term loans available today. Application, approval and funding are the three steps used to process most of these payday type loans. Low interest rates payday loans like the online installment loans use these same procedures. The major difference with these loans is the extended payback period. Instead of being repaid on the next available pay date, the installment loans are programmed for repayment over several consecutive pay dates. The period may be based in months, but the repayment dates are based on the pay dates within those months. Electronic repayment of the installments is by automatic deduction or withdrawal from the checking account on the appointed days.
Qualifications for low interest rates payday loans
Are there special qualifications required to get a low interest payday loan? Not really, most online payday loan lenders only require the applicant to be 18 years or older with a steady monthly income, usually at least $1,000, and an established bank account. Once these requirements are satisfied, then the lender evaluates the consumer’s application on their ability to repay the loan over the requested time period. If the applicant meets the requirements then the loan is instantly approved. Having approved the application for one of the low interest rates payday loans, the lender can then deposit the loan funds into the consumer’s checking account.