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Business Loan Understanding Installment Loans in Moundville, Alabama
Living in Moundville, Alabama, can be great. From the beautiful scenery of the natural environment to the friendly people, there’s a lot to love about living and working here. However, despite its beauty, financial emergencies can arise unexpectedly, leaving one in need of a loan. Luckily, installment loans are legal and popular to many people in Alabama.
What is an Installment Loan?
An installment loan is a type of loan that allows a borrower to receive a lump sum of money upfront and then pay it back with interest over time in regular payments. The payments are usually made monthly, bi-weekly, or weekly depending on the lender’s preference and agreement with the borrower. Installment loans are different from payday loans in the sense that they are paid back over an agreed term and in fixed installments that are affordable.
Normally, installment loans have two types: unsecured and secured. In the case of a secured loan, the borrower pledges collateral that can be seized by the lender if they default on payments. On the other hand, unsecured loans do not require any collateral, but they are usually accompanied by higher interest rates because of the added risk to lenders.
Installment Loans in Moundville, Alabama
In Alabama, installment loans are legal under state law. Title loans and payday loans are also legal and readily available to borrowers looking for quick cash. Under Alabama law, lenders can charge up to 25% interest on a loan. This means that for every $100 borrowed for a term of 14 days, the interest rate can be a maximum of $17.50.
In Moundville, Alabama, you can find many lenders offering installment loans to residents. These lenders may be storefront lenders or online ones. It’s important to note that many online lenders aren’t based in Alabama, so you should be wary of scammers and fraudsters before you apply for a loan.
Benefits of Installment Loans
- Installment loans have fixed interest rates and payment installments, making them predictable and easy to budget for.
- They’re an excellent option for people who need to borrow larger sums of money.
- Borrowers with low credit scores can still apply for installment loans since lenders take other factors, including income, into account.
- The repayment period can range from months to years, meaning that monthly payments are usually affordable.
Interesting Facts About Installment Loans in Moundville, Alabama
- Alabama has the highest concentration of payday lenders per capita in the United States.
- Despite a few regulations, payday loans have been criticized for their high-interest rates and predatory lending practices.
- The average payday loan in Alabama is around $400, with interest rates ranging from 400% to 500% annually.
- Even with the introduction of installment loans, payday loans still abound in Alabama, which shows that people still seem to prefer them despite their high-interest rates.
Apply Now
If you find yourself in need of quick cash, we at TheGuaranteedLoans can help. We work with a network of reputable lenders who can offer you the best deals on installment loans, payday loans, and other types of loans. Our application process is easy and straightforward, and you can apply online. We are a connector service and not direct lenders, meaning we will facilitate your connection with potential lenders. Fill out our online application form and enjoy getting the best loan offer without any hassles today.