Advantages Of Allotment Loans For Government Employees
If you are a government employee and are facing an unexpected financial situation, you can consider the option of allotment loans. For the uninitiated, allotment loans allow a person to ‘allot’ a part of the paycheck towards repayment of the loan. The loan can be a discretionary loan, where the borrower decides on how much to pay in installment, which can be a part of the loan, and the rest can be paid from another source. Non-discretionary loans have a fixed installment, decided by the lender, to be paid each month. Note that allotment loans for government employees are installment loans, so the term is longer than standard payday loans.
Here is an overview of the advantages-
- Simple requirements. You don’t need a collateral, can get an allotment loan online, and since you are a government employee, the lender has trust in you and will be willing to give the maximum amount that’s allowed through their lending system.
- Borrow more. When compared to payday loans, allotment loans allow you to borrow and repay in easy installments, so there is enough time to plan your finances. You can borrow more with some lenders.
- Get on bad credit. Even if you don’t have a great credit score, you will qualify for allotment loans, considering that lenders think of your job as a stable one with a fixed income. It’s okay to have bad credit.
- Quick approval. You can complete the entire process online for installment loans, and approval is typically assured within one to two business days. Most government employees will qualify for allotment loans anyway.
- Lower interest rate. There is no denying that quick types of lending are usually expensive, but when you think of the interest rate of payday loans, allotment loans are definitely cheaper. The short lending term also means that you don’t need to worry about carrying a loan around for years.
Most lenders don’t want to know why you need an allotment loan, which means you can spend the money in the way you want, without being specific. The process is discreet, and you can use the loan amount for emergencies, without anyone knowing that you are in a financial mess.
Always consider loans after evaluating the pros and cons. You have to plan your finances well to ensure that loan is repaid in time. You can check online for more details on allotment loans and apply immediately.