A loan with small installments is particularly ideal if your own income is rather low and therefore there is little monthly financial scope to agree on higher payment rates and to be able to consistently pay them.
In combination with the long term, the rates for the loan amount are also automatically reduced, since in the end the loan amount is of course extended over a longer period of time.
A loan with small installments also has the advantage
Especially in the area of microcredit, it is not uncommon for the borrower to prefer a longer-term so that the repayments do not restrict him financially in his monthly budget.
A loan with small installments also has the advantage that even borrowers with a lower credit rating are more likely to hope for a positive response from the lender. The rates for the loan amount are also automatically reduced since in the end the loan amount is of course extended over a longer period of time.
Ultimately, the lender himself has to weigh up how high the borrower’s default rate is and whether the loan that has been handed over can actually be repaid on time along with all the interest accruing. The smaller the installments including interest, the lower the default rate of an installment.
Find attractive loans with small installments
A loan calculator is an easy way for potential borrowers when looking for loans with small installments. Here, the runtime can be freely set before the comparison, so that the sum and the rates can be set in direct dependence on each other. Subsequently, you will not only find loans with low installments but also the cheapest provider for the conditions you have chosen.
Highly endowed loans are rarely implemented with small installments since the loan amount is usually too high for the long term to correlate the low installment payments.
Nevertheless, it is of course always an individual decision as to which rates are described as “small” or “low” because ultimately the installment payments are of course directly linked to the income of the borrower. The higher this is, the higher the installment payments can be, without any financial restrictions.