Installment Loans in Lebanon, Kansas

When people experience a financial emergency, they may turn to installment loans for help. In Lebanon, Kansas, installment loans are both legal and popular. But what are installment loans and how do they work?

What are Installment Loans?

An installment loan is a type of loan that is repaid in regular, fixed payments over a set period. Unlike payday loans, which typically must be paid back in full on the borrower’s next paycheck, installment loans allow borrowers to make smaller, more manageable payments over a longer period of time.

Installment loans in Lebanon, Kansas are regulated by the state. Borrowers must be at least 18 years old and show proof of income to qualify. Lenders must also adhere to certain lending limits, and borrowers cannot have more than two outstanding loans at a time.

How do Installment Loans Work?

Installment loans work by providing borrowers with a lump sum of money that they must repay over a set period of time. The loan amount, interest rate, and repayment terms are agreed upon in advance and are typically based on the borrower’s income and credit history.

Each payment made on an installment loan goes towards both the principal amount borrowed and the interest charged on the loan. Over time, the balance of the loan decreases until it is paid off in full.

Advantages of Installment Loans

• Flexible Repayment Terms: Installment loans allow borrowers to make smaller, more manageable payments over a longer period of time.
• Predictable Payments: Unlike payday loans, which can have fluctuating payment amounts, installment loan payments are fixed and predictable.
• Lower Interest Rates: Installment loans typically have lower interest rates than payday loans, which can help borrowers save money over time.
• Build Credit: Consistently making payments on an installment loan can help borrowers build or improve their credit score.

Disadvantages of Installment Loans

• Length of Repayment: While the longer repayment terms can make payments more manageable, they also mean borrowers are in debt for a longer period of time.
• High Overall Costs: Even with lower interest rates, the overall cost of an installment loan can be higher than the amount borrowed due to interest charges and fees.
• Requirement of Collateral: Some installment loans may require borrowers to offer collateral, such as a home or car, to secure the loan.

Interesting Facts about Installment Loans in Lebanon, Kansas

• As of 2020, Kansas has no limits on the amount that can be borrowed through installment loans.
• In 2019, Kansas saw an increase in the number of licensed installment loan companies, from 201 in 2018 to 221 in 2019.
• The average installment loan in Kansas is $1,200, according to the Consumer Federation of America.
• The average interest rate for a 12-month installment loan in Kansas is 224%, according to a report by Pew Charitable Trusts.

Apply Now

If you’re in need of quick cash in Lebanon, Kansas, TheGuaranteedLoans can help connect you with potential lenders offering installment loans. Fill out our online application today to get started.

Please note that TheGuaranteedLoans is not a direct lender and only serves as a connector service. Our goal is to connect borrowers with potential lenders who may be able to provide them with the financing they need.