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Business Loan Understanding Installment Loans in Liguori, Missouri
When facing a financial emergency, installment loans can be a helpful option to consider. Unlike payday loans, which require the borrower to repay the entire amount borrowed in a single lump sum on their next payday, installment loans allow borrowers to repay the loan in smaller, more manageable installments over a longer period of time. In Missouri, installment loans are legal and are a popular option among consumers.
How Installment Loans Work
Installment loans are typically unsecured personal loans, meaning that the borrower does not have to put up collateral to secure the loan. Instead, the lender relies on the borrower’s credit history and income to determine their ability to repay the loan.
When applying for an installment loan, the borrower will typically fill out an application and provide documentation such as proof of income, a state-issued ID, and their social security number. The lender will then use this information to determine the borrower’s creditworthiness and decide whether to approve the loan.
If the loan is approved, the borrower will receive the funds in a lump sum, and will then be required to repay the loan in regular installments over a set period of time, typically ranging from a few months to several years. The amount and frequency of the installments will be determined by the terms of the loan agreement.
Pros and Cons of Installment Loans
Like any financial product, installment loans have both advantages and disadvantages that borrowers should be aware of before deciding whether to apply for one.
Pros:
- Lower interest rates than payday loans
- Predictable repayment schedule and fixed monthly payments
- No collateral required
- Can be used to consolidate high-interest debt
Cons:
- May require a credit check, which can affect credit score
- May have higher interest rates than other types of loans
- Penalties for early repayment may apply
- Missed or late payments can result in additional fees and damage to credit score
Applying for an Installment Loan in Liguori, Missouri
Applying for an installment loan in Liguori, Missouri is a straightforward process. Interested borrowers can apply online through a lender’s website, or in person at a brick-and-mortar location. When applying for a loan, it’s important to have all necessary documentation, such as proof of income and identification, readily available in order to speed up the application process.
It’s also important to shop around and compare offers from different lenders in order to find the best loan terms and interest rates. Websites like TheGuaranteedLoans can be a helpful resource in connecting borrowers with reputable lenders in Missouri. However, it’s important to note that TheGuaranteedLoans is a connector service and not a direct lender.
Interesting Facts About Installment Loans in Liguori, Missouri
- According to a report by the Missouri Division of Finance, there were over 348,000 installment loans issued in Missouri in 2018, with a total principal amount of over $1.1 billion.
- Research by the Pew Charitable Trusts found that the average APR on an installment loan in Missouri is 450%, which is much lower than the average APR of 963% on a payday loan in the state.
- Missouri is one of 13 states that allows both payday loans and installment loans, but institutes different regulations for each type of loan.
Apply Now
If you are considering an installment loan in Liguori, Missouri, TheGuaranteedLoans can help connect you with reputable lenders in the area. Fill out our online application form today to get started. Remember, TheGuaranteedLoans is a connector service and not a direct lender.