An instalment loan is a type of loan that is borrowed from a lender and repaid with interest in regularly scheduled payments. The time it takes to repay an instalment loan can last anywhere from a few months to up to 30 years for larger loans.
Instalment loans are borrowed from a bank, credit union or other type of lender and are usually used to help finance larger purchases, like a home or a car. Most people wouldn’t have the money to purchase a car with cash, so they choose a loan that allows them to pay for it over time.
Instalment Loans vs. Short-Term Loans
While instalment loans can be great for large purchases, sometimes smaller amounts are needed in a manner that can be repaid the same way. A short-term loan, like the name implies, is repaid in a shorter period of time than an instalment loan, and the amount borrowed for short-term loans is usually less than with instalment loans. While different lenders will vary widely, it’s helpful to familiarise yourself with the general differences between instalment loans and short-term loans.
|Loan Amount||Repayment Period||APR|
|Instalment Loan||Typically for amounts over £1000||Months to Years||Typically lower, but with a longer repayment period|
|Short-Term Loan||Usually less than £2000||Days to Months||Can be higher than instalment loans|
QuickQuid's Instalment Loan Alternative
When cash emergencies land at your doorstep and throw off your budget, an unsecured short-term loan from QuickQuid can help you pay bills quickly. We offer short-term loans of up to £1000 for first-time customers, or up to £1500 for returning customers. You choose to repay the loan in 1, 2 or 3 periods. If you’re approved, you can get money deposited directly into your account in less time than it takes to drive to a bank. Looking for a smaller alternative to an instalment loan? Apply now to see if you qualify for a short-term loan from QuickQuid. Or — if you need access to a larger cash amount and can handle the regular recurring payments of an instalment loan, apply now with our partner, On Stride Financial.
More Information About QuickQuid's Short-Term Loans
With over 1.4 million customers and counting, you can rely on QuickQuid for the best-in-class short-term loan. If you have a question or need help, our dedicated customer support team is available 7 days a week.