A person may want to modernize their home, build a den, or buy new furniture without restricting their family budget. An installment loan with MaxLend Loans allows consumers to spread the costs of their payments over time, meaning they only repay a portion of the borrowed amount each month.
Good to know
The interest associated with an installment loan, if used for home and business renovations, is eligible for a tax reduction. However, keep in mind that borrowing money also costs money. Fees and service charges need to be considered before choosing this type of loan.
Are you lost among all the various types of consumer loans? This is normal as financial institutions offer a lot! But do not panic, this article will define what an installment loan is and how to benefit from it.
What is an installment loan?
An installment loan is consumer credit for private purposes. It is granted to individuals wishing to purchase any movable property such as a car, a computer, or a service, such as organizing a wedding. In a more general way, it also makes it possible to face unexpected expenses without having to draw from your savings.
These may include those related to a home renovation, going back to school, or taking a vacation. In short, the possibilities are numerous. In theory, this type of loan does not require proof of use.
However, in practice, many lenders customize the name of their products and design them for a specific type of need. You will find car loans, holiday loans, or even work loans.
Don’t get confused
Do not confuse installment loans with mortgage loans. The latter is generally spread over a period of 10 to 30 years and is used to finance a home purchase or renovation. With this type of loan, the lender asks for a mortgage on the property and can seize and sell it if the borrower does not repay the loan in full.
Depending on each case, a mortgage is more attractive than the installment loan in terms of rate and tax benefits. To learn more about this and other types of loans, contact MaxLend today.