Installment Loans

Self-employed with a small or installment loan



In most cases, anyone who wants to become self- employed also needs capital in order to be able to pay for their first business start-ups.

On the other hand, if you are planning to become self-employed on the Internet, you certainly do not need the amount of money like someone who wants to set up a production facility with the appropriate machines and employees.

The basic equipment for web workers is an internet-enabled PC with additional accessories, probably a website or even several, certain software, etc.

If you want to get started in online trading, you have to estimate a little more because most of the time you have the shop programmed and put online by external service providers.

These purchases in the low to medium four-digit range, perhaps even higher, go on budget. There is a small or installment loan available for financing, because one advantage of this loan is that it is not tied to a specific purpose. That means you can use the money for whatever you want.

Installment loans are easier to grant

A small or installment loan is a term used to refer to loans that, due to their limited loan amount, make very little demands on the risk assessment and are therefore easier to issue than higher loans. Small loans can start at 500 dollars and are capped at around 3000 or 5000 dollars. But there are also small loans in the amount of 10,000 dollars and more. The maximum loan amount is set differently at the different banks. The average term of such a loan is 12 to 36 months.

Since the loan amount is usually not too high, the installments can also be repaid faster and you can get rid of your liabilities in a timely manner. And the monthly installments are also easier to repay because the amount is very manageable. The interest rate for most small loans is between just under 3 and a good 8 percent pa

What should you look for in installment loans?

Anyone who is interested in an installment loan should get enough information in advance. First of all, you should attach importance to how high the interest costs are, because there are noticeable differences between the providers.

It is also practical if there are no processing fees and individual installment payments can be arranged so that you do not overload your financial options.

Also note the effective interest rate, which is always included in the individual loan offers. The effective interest rate indicates what a loan will really cost you in a year. Additional costs may arise from account management and account statement fees.

In addition, some small loans are granted based on your credit rating. If your creditworthiness is particularly high and you have personal collateral that the bank recognizes, the interest rate is often more attractive. Another important key figure for installment loans is the two-thirds interest rate. This states which loan interest rate 2/3 of all borrowers really receive.

Cheap online loans


Since small or installment loans are relatively unattractive for house banks because the interest income is not very high, you should consider applying for a small loan online. Online banks have developed standardized processes for this, which is why a cheaper online loan via an online request is more likely than an attractive small loan from a house bank. You can also get a loan approval in a very short period of a few minutes after an online request.

Example: If you apply for an online loan of more than 5000 dollars, you can count on monthly installments of approximately 150 dollars and an interest rate of 4 to 5.85 percent with a loan term of 36 months, so that at the end of the loan term Repaid 5400 dollars. Shorter terms mean that installment payments skyrocket.