Installment Loan Requirements

An installment loan is money borrowed from a bank or lender that must be paid back by a set date in regularly scheduled payments. The requirements for an installment loan are slightly less demanding than those for other types of loans, but the requirements are similar in nature.

Depending on what the installment loan will be used for, business or personal, the requirements differ. Businesses must prove that they are secure.  This means proving that a business has been in existence for a period of time and that the business has the ability to remain in existence over the term of the loan. A business must outline the specific expenses that it plans to cover with the money from the installment loan and must have good credit history. 

If an installment loan is borrowed for personal use, a borrower must provide a lender with proof that he or she will be able to make the monthly payments. This means providing proof of adequate cash flow such as income statements, bank statements, and job security. Bad credit installment loans, which have higher interest rates, are available for borrowers with less than perfect credit. 

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