An installment loan is a relatively well-known financial product. In agreement with the banks, they offer it, among others furniture stores, electronics stores, home appliances and electronics or hypermarkets. Customers who like convenience can buy in this way also in selected e-stores.
Completely free installment loan is a rarity
Thanks to the installment loan service, the client can become the owner of some good (eg plasma TV) or use a service (eg a trip, operation) without paying the entire amount required for it when entering into a contract with the seller. The money is lectured by the bank, and the consumer gives it later in monthly installments, possibly increased by interest and other costs, such as insurance.
There are various variants of installment loan. The most beneficial for the customer is:
- – distribution of receivables to the number of interest-free installments chosen by the client,
- – no need to pay your own contribution at the time of signing the contract,
- – no commission,
- – no insurance.
In practice, it looks like a consumer who, for example, buys a computer for 6,000. PLN, it will be repaid for 24 months in installments equal to PLN 250 each. It will not incur any additional costs. It will benefit from free financing.
This model of installment loan is the least common. Most often it happens that in order to receive installments of 0 percent, you need, for example, to buy insurance, pay a commission or additionally to contract with a credit card, whose service does not have to be free.
Installment loan on Allegro and in the e-store
Despite these drawbacks, the installment loan makes all participants in the transaction happy, as well as suppliers and producers. This form of financing stimulates demand, which accelerates economic growth. The customer immediately purchases a product that he would normally have to save for a long time or would not be able to afford at all.
This is not the end of the advantages of installment purchases. You can use them not only at stationary points, but also on the Internet. Online installment loan is available, among others on Allegro and in those e-shops where RT Payment is responsible for settling payments.
Internet transactions takes place automatically
Breaking transactions into installments on the Internet takes place automatically. The option is available at the stage of choosing payment methods.
In the case of Allegro, it is necessary to mark ‘PayU installments’ and follow the instructions, i.e. provide data that will be sent to the lender, and this is ABC Bank or IUFinance. The condition for using this solution, however, is successfully passing through the creditworthiness assessment procedure (scoring), which takes several minutes, and the age of the applicant under 70 years. The whole operation of taking out an installment loan online, including filling out forms, should be closed in several dozen minutes.