Unless the loan is owed collectively by at least two people (which can be more as well- such as a country getting funded by the world bank for example) or an organization, it is a personal loan. One might spend the loan money for a collective purpose such as towards family or friends, but as long as s/he is the lone debtor, the funding is a personal loan. That is why mortgages, student loans, car loans, payday loans, emergency installment loans and business loans are primarily considered to be personal loans.
As you may have noticed, some of the personal loans are specialized to target borrowers with various needs. A college student would prefer a student loan, a home buyer would want a new home loan, and an entrepreneur would always want a business loan.
On the other hand, payday loans and small-cashed installment loans can be availed because of any emergency or sometimes as a precaution and extra cash. For funds like $500 or $1,000 a condition does not look appropriate. Similarly, unlike large scale personal loans, these can be availed from lenders like CashAmericaToday even with bad credit scores.
Is a Personal Loan Considered an Installment Loan?
Now you must be very clear that an emergency installment loan is always a personal loan. However, is it also the other way? Are personal loans installment loans too? The answer is no, not always. Although the large funding like mortgage loans and car loans are always paid back in installments, when it comes to small dollar loans, it doesn’t have to be an installment loan.
Payday loans need to be paid at once, and can’t be treated as installment loans. Similarly, the emergency installment loans also –if the borrower wants to- can be paid back in one go. At lenders like CashAmericaToday, you have the flexibility you want. Apply for a cash loan now!