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What is the Difference Between an Installment Loan and a Personal Loan?



In Canada there are different types of personal loans available to customers, each of which has their own set of repayment terms, financial charges and other terms. Installment loans fall under the umbrella of personal loans, but they are meant to be used for short term financial needs such as emergency expenses. Yet, they differ from other short term loans. This loan will provide you the money you need to cover many of your unexpected expenses.

Typically, a personal loan is granted to qualified borrowers who are in need of money to cover a wide range of needs. This loan can be used to cover the cost of unexpected requirement such as medical bills, home repair, car repair, and so on. This loan will help you meet your needs in real time. On the other hand, installment loan is simply a version of a personal loan.

When you are applying for an installment loan, it is important to differentiate it with other short term loans. Both of these loans involve small dollar loans. While short term loans needs to be typically repaid in a lump sum on an agreed upon date, installment loans can be paid back overtime in regular installments. Compared to short term loans, installment loans can be borrowed for several months. Like any other type of personal loans you may pay off your installment loan early whenever you can without being subjected to penalty charges for doing so.

When applying for installment loans you will need to fill in an application. Before you are approved, lenders will reviewer number of qualifying criteria to determine your ability to take out a loan. These qualifying criteria will provide the lender with an in-depth perspective of how likely you are to repay back the loan on time. Whether you are applying for an installment loan or a personal loan at http://www.installmentloanscanada.ca, it is important to understand all the loan options and qualifying requirements. By being an informed customer you can rest assured that you will qualify for the loan that best suits your specific financial situation.

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