Installment Loans in Bordentown, New Jersey

Understanding Installment Loans in Bordentown, New Jersey

When faced with unexpected financial burdens, people often turn to loans as a means of managing their expenses. Installment loans, in particular, have gained popularity in New Jersey including the city of Bordentown; thanks to their ease of accessibility and convenience. If you’re a Bordentown resident, here’s what you need to know about installment loans.

What Exactly are Installment Loans?

Installment loans are types of personal loans with a defined length of payment and fixed interest rates, unlike payday loans which require the borrower to repay the total amount borrowed plus interest on their next payday.

Installment loans can be processed quickly, often taking less than 24 hours to go through. The loan amount is disbursed to the borrower’s account and is expected to be repaid over a predetermined length of time, usually from six months to three years. Installment loans are suitable for people who need to borrow money but cannot afford to pay it back immediately.

Are Installment Loans Legal in Bordentown, NJ?

The state of New Jersey, including Bordentown, fully supports and allows installment loans as provided by New Jersey Statutes Annotated Title 17 and Title 45 Section 1.1 et seq that regulate the practices of small loan lending and non-bank lending institutions.

However, there are strict laws regulating the issuance of these types of loans in order to protect both the lenders and borrowers alike.

• Maximum Loan Amount: The maximum amount borrowable is $10,000. Exceptions can be made for higher loans, but only if they are regulated by the state and are subject to additional laws.
• Interest Rates: Lenders are limited on how much they can charge in interest rates. In New Jersey, lenders can charge up to 30% interest on loans with a principal amount between $1,000 and $2,500. For loans exceeding $2,500, the maximum allowable interest rate is 18%.
• Repayment Period: Installment loans are usually repaid over periods of six months to three years, depending on the terms of the agreement reached between the borrower and the lender.

The Pros and Cons of Installment Loans in Bordentown

Like any other types of loans, installment loans have advantages and disadvantages. It’s important to consider these before making a decision whether to take out an installment loan or not.

The Pros

• Quick and Easy Access: The application process for installment loans in Bordentown is straightforward and often takes less than 24 hours to get approved. If you have a bad credit score, installment loans are a great option as credit score requirements are lower than traditional loans.
• No collateral required: Unlike with traditional bank loans, you don’t need any collateral to secure an installment loan in Bordentown, NJ.
• Fixed rates: Installment loans usually have a fixed interest rate, which makes it easy to create a budget and repay the loan accordingly.

The Cons

• High interest rates: Interest rates on installment loans can be high, especially if you have a low credit score.
• Penalties on late payments: If you’re unable to make payments on time, you may be subject to late fees and penalties. These can add up quickly and make it hard to repay the loan in full.
• Debt cycle: Taking out an installment loan without proper financial planning can send you into a debt cycle, which may be hard to escape from.

Interesting Facts and Statistics about Installment Loans in Bordentown, NJ

• At least 50 institutions in the state of New Jersey currently offer installment loans.
• There are strict laws regulating installment loans issued in the state of NJ that are designed to protect both the borrower and lender.
• More than half of all loans in NJ in 2019 were made to borrowers with credit scores below 650.

Apply Now

If you’re considering an installment loan in Bordentown, NJ, you’ve come to the right place. TheGuaranteedLoans is a trusted connector service putting you in touch with potential lenders. Fill out the online application on our website with your details, and we’ll get back to you with loan options you can consider. Remember that we are not a direct lender, and the conditions of your loan will be subject to the laws and regulations of the state of New Jersey.

Whether you’re dealing with an unexpected expense or planning ahead, an installment loan can be an excellent way to manage your finances in Bordentown. Research different lenders, compare interest rates and fees, and make your decision based on what works best for you.