Tribal installment loans are one of the types of loans offered by loan companies. The most important difference compared to payday loans is that installment loans are paid off in monthly installments and not in one go. The difference compared to banks is that non-bank companies are more understanding than banks and issue a positive decision also when the applicant has bad credit history and no history at all.
Another difference is that not all companies provide installment loans online. Some of them work in such a way that you can only make an appointment via the Internet, and then a consultant comes and grants a loan during a home visit.
Tribal Installment Loan Requirements
The typical requirements of Tribal Installment Loans from Direct Lenders are:
- age over 18 and under 75;
- American citizenship and residence;
- valid ID card;
- bank account, email and phone number;
- proof of income.
The requirements of each loan company can be found in the tribal installment loans rankings.
Accepted income sources for installment loans from direct lenders
Direct lenders accept various sources of income, not only from the employment contract. The basic sources of income can be:
- contract of employment;
- contract of mandate;
- contract work;
- economic activity, including the so-called self-employment;
- management contract;
- pension;
- an agency agreement;
- lease agreement, e.g. for an apartment or a house;
- lease agreement for e.g. agricultural land;
- agricultural activity.
Additional sources of income accepted by loan companies are scholarships, additional jobs and various types of allowances and benefits.
Tribal installment loans – amounts, repayment periods and costs
The amounts of tribal installment loans offered by loan companies are much higher than payday loans. Applying for an instrument loan from direct lenders, you have the opportunity to receive an amount from 1,000 to 5,000 dollars. the repayment period of such a loan is from 2 to 36 months.
A tribal installment loan, like any other product, should be carefully analyzed in terms of the costs incurred. This is helped by the APR indicator (the annual interest rate, i.e. the measure of the cost of the loan). When analyzing the conditions, however, it is worth not to limit yourself to only this one indicator, because the APR is calculated on an annual basis, so if the loan is repaid after a few months, the indicator may be less effective than simply calculating the total cost of the loan.
A tribal installment loan, like most loan products, has two key costs: interest and commission. All information on costs should be presented in a clear and understandable manner on the information form that the client receives before signing the contract. It may also happen that you will only pay a commission on granting a loan or that the standard commission will be lower for the first loan at a given financial institution. However, this does not release you from the obligation to thoroughly analyze the costs. The commission for the installment loan usually depends on the amount and repayment period provided for in the contract.
If the loan is not repaid in accordance with the schedule specified in the contract, you must take into account additional costs. That is why it is worth choosing the parameters of the installment loan so that the installments are repayable and do not exceed the possibilities of your home budget.
Pros of tribal installment loans
Installment loans are in many respects between payday loans and cash loans granted by banks. The undoubted advantage of tribal installment loans is less bureaucracy, and thus greater ease of obtaining them compared to bank loans. Companies such as Good Friend Loans offering tribal installment loans do not approach the entries in the database as strictly as banks. Installment loans for those in debt are a good solution for borrowers who would like to reduce their costs related to paying off payday loans.
Also, the number of accepted sources of income is greater than in banks, and the income may be lower than in the case of loans. In addition, companies offering tribal installment loans usually do not require certificates from employers – the client’s statement about the amount of income is accepted. A tribal installment loan without verification by the employer is usually a standard in non-bank companies.
Another advantage is higher installment loan amounts and a longer repayment period. Thanks to this, the borrower can plan his expenses, and the repayment of subsequent installments does not burden his budget so much. Some installment loans are comparable to bank loans in terms of the maximum loan amount and the repayment period.
Early repayment of tribal loans
A favorable installment loan gives you the option of repayment at any time from the moment of its receipt. By paying off your liability earlier, you should not be exposed to interest or a commission for the unused loan period. If you pay off the loan early, the cost of the loan will eventually decrease as the total cost of the loan will decrease according to the actual period you have used it.
Unfortunately, not every company on the market has thoroughly prepared offers and contracts sometimes include the so-called abusive clauses. Therefore, it is very important to check carefully before signing the contract whether it contains prohibited provisions or provisions regarding unfavorable terms of early repayment.
You should also not sign any documents if you do not fully understand them or have any doubts about its provisions. Haste is a bad advisor here.
Summary
Tribal installment loans are a good solution for customers who need additional funds for a longer period, but do not have the time, willingness or the possibility of obtaining a bank loan. Lower requirements of companies offering loans on monthly installments than those required by banks allow many customers whose applications would be rejected by the banks to take advantage of this form of financing. At the same time, lower costs of these loans reduce the risk of a negative impact on financial liquidity or falling into a debt spiral.
