The hardest part when it comes to loan management is the repayment. Securing a loan is one thing, paying them back is a whole different thing. Instead of paying the full loan amount plus the interest once, some loan platforms allow you to pay in instalments. Loans are easier to pay on instalments, that’s why we’ll be bringing to you top loan platforms that allow you to pay on instalments.
Loans and Loan Payment
It’s normal for anyone to get a loan. Loans can come in handy for you to purchase an item, settle bills, and get other tasks done pending the time you get paid or have the money. However, when a loan is given, you’ll be expected to pay the loan back within a period. In several cases, most people are not able to pay back the loan because of the huge accumulated amount to be repaid.
This has become an issue for several loan platforms over the years and since the loans given by these platforms are unsecured, it becomes hard for these platforms to get their money back. Few days ago, Nigeria’s first digital-only bank, Kuda announced the incurrence of over N6 billion loss due to bad loans in 2021, according to financial records which details a two-year losing streak.
In a weekly Zikoko Series titled “A week in the Life“, Ama Udofa shared what her life was like as a Debt Collector at a Digital Bank in Nigeria, calling over 180 loan defaulters every single day in order to get them to pay up their debts.
In response to this, several loan platforms have therefore created a system where loan applicants can pay in instalments. This way, loan applicants can gradually repay loans until the loan is paid completely.
Benefits of paying loans in Instalments
Whether a loan or a cost for a particular item, it is always easier to pay in instalments because of flexibility and the ability to schedule payments to match paydays. Here are some benefits of loan payment in instalments.
1. Eases loan payment pressure
The payment of loans in instalments is an advantage for any loan applicant because it eases the pressure off them when it comes to D-Day when the applicant must complete the loan payment. By paying in instalments, applicants don’t really have to worry about the loan taking a huge chunk of their salary or savings.
2. Contributes to the increase in Credit Limit
Credit Limit is the highest loan amount available to a loan applicant. When a loan is given to a loan applicant, and they begin to pay in instalments, the loan platform sees it as the applicant showing commitment to the loan agreement, thereby creating a kind of trust in the system. When the loan is finally repaid on or before the deadline, the applicant might get an increased credit limit on subsequent loans. This process also applies to loan applicants who pay back the loan amount in full before the stipulated or given deadline.
Top loan platforms that allow you to Pay on instalments
Before you can be given a loan, loan platforms ensure that the applicant has a good credit score. A credit score is a 3-digit number ranging from 300 to 850 and is used to evaluate an applicant’s creditworthiness. The higher the credit limit, the higher the chances of you getting the loan and vice versa. Credit scores are based on financial records, debt history, repayment history and other factors.
Loan platforms check out the Credit limit of the loan applicants before the loan is issued. After the loan has been given, the countdown to the loan repayment begins and the loan applicant is expected to complete the loan repayment on or before the loan’s payment due date.
Below are top loan platforms that allow applicants to pay on instalments.
- PalmPay: loans can be paid on instalments anytime until the due date.
- Carbon loan
- Branch: allows payment in instalments on a weekly basis.
- Umba: Umba allows instalment payment as the individual prefers, so long they are able to complete the loan before the due date.
Before applying for a loan on any loan platform, make sure to check for the payment plans provided by the platform. While some might allow you to pay your chosen amount on instalments till the due date, some require a specific amount for instalment payment. Therefore, loan applicants should ensure they are able to keep up with the payment plan to avoid any trouble.