Instalment loans are just what their name suggests because they have to be repaid in several smaller instalments over a short or long period of time. These loans are essentially different from other short term loans which usually have to be repaid as a single lump sum of money when the loan duration gets over. Most long term loans like mortgage loans, car loans etc. are paid in instalments but sometimes even short term loans are paid like this. Usually, an instalment loans have tenures of 3 months, 6 months, 12 months, 24 months and so on. The instalments could be monthly or weekly as decided at the time of approval of the loan.

Why lenders prefer a guarantor

Most lenders prefer giving loans to people who can provide a guarantor because then there is a lower level of risk associated with the loan. A guarantor agrees to make payment of the loan in case the borrower is unable to repay a few instalments. In case he or she does not keep their word, they can be taken to court and get embroiled in a legal situation. This is the reason that you should choose your guarantor carefully.

How to get loan without guarantor

It is quite possible that you are not lucky enough to have a friend or relative to vouch for you at the time that you apply for a loan. In this case, you may have to look for instalment loans without a guarantor. It may seem difficult at first to find a lender who provides loans without a guarantor, but it is quite possible because there are many loan brokers who are associated with such specialist lenders. These specialist lenders look at your actual ability to repay the loan instead of worrying about such things as a guarantor. However, because they are taking a higher risk they also charge a higher rate of interest.

What do you do if you are unemployed?

The rate of unemployment has increased over the last few years and many people find that they are out of jobs due to no fault of their own. In such a time if a financial emergency hits you then you will have to look for a helping hand in the form of instalment loans for unemployed. It is quite easy to find lenders providing such loans because these lenders understand that just because a person is unemployed it does not mean that he or she will not be able to repay the loan. It is easier to find such specialist lenders if you approach a good loan broker.

Benefits of opting for a loan broker

• Loan brokers have tie-ups with several specialist lenders who are ready to give loans to unemployed people or bad credit people.
• You are protected from unscrupulous lenders and loan sharks if you go through loan brokers because they usually vet out a lender before they become associated with them
• Loan brokers will provide you free financial advice which will be useful in taking decisions like the loan amount, loan tenure and other factors involving the loan.