With an instalment loan like a 24 month loan, you repay the loan amount and interest over a fixed number of repayment periods.
On Stride Financial offers repayment terms of 1 – 5 years, depending on loan amount.
Actual loan amount, APR and term may vary based on actual application details.
On Stride Financial prides itself on providing our customers with much-needed funds. If approved for a loan, our instalment options allow you to spread your repayment over months or years, giving you more financial flexibility.
An On Stride Financial loan is unsecured, with amounts available from £1,000 to £10,000, and loan durations of 1 to 5 years. We have APR rates in the range of 29% - 89% which are determined for each customer based on their unique financial history. Actual loan amount, APR and terms may vary based on actual application details.
On Stride Financial is rated 4.8 out of 5 by Reviews.co.uk based on 1,192 reviews
Put simply, a 24 month loan is a loan that is repaid over a period of two years. What this means for you is that you will repay your loan amount plus interest on a 24 month repayment schedule. As an example, if your loan were for £3,000 and had a 89% APR, you would pay £226.31 each month for 24 months. Once you made the final payment, you would have fully paid off the initial loan and the interest.
A 24 month loan can be offered with a wide range of cash amounts. Because of its relatively longer repayment time, this type of loan can often be for comparatively larger amounts than those with shorter repayment periods. Payday loans, for instance, usually last several weeks at most, and so are for commensurately smaller amounts.
When deciding how much money you want to take out for your loan, look carefully at how long you have to repay it and how much you will have to pay at each repayment period. With a longer-term loan, you might be able to repay relatively less money per period, but you will be committing yourself to a longer financial responsibility. Think about whether you’ll still be able to make your payments at the end of the loan term.
APR is one way to understand how much cost of credit is charged on a loan. If loan amounts and repayment times are equal, a loan with higher APR will have a higher cost of credit. To illustrate, imagine two On Stride Financial loans for £2,000 repaid over 12 months, one with 29% APR and the other with 45% APR. The total repayable for the 29% APR loan would be £2,292.72 (cost of credit is £292.72), whereas the total repayable for the 45% APR loan would be £2,435.16 (cost of credit is £435.16).
Given identical loan amounts and APR, longer loans will accrue more cost of credit and thus cost more. Take two On Stride Financial loans for £2,000 at 29%, one for 12 months and one for 24 months. The loan with the 12-month term would have a total repayable of £2,292.72 (cost of credit is £292.72), while the total repayable for the 24 month loan would be £2,585.98 (cost of credit is £585.98).
When preparing to take out a 24 month loan, it's a good idea to carefully consider why you need the loan in the first place, as well as your capacity to pay it back. Like any loan, a 24-month loan should only be taken out for an important reason — whether that is emergency expenses or small renovation. If you think about it and decide that your need is not that urgent, it might be a good idea to hold off on taking the loan, or if it is necessary, to take a smaller amount.
If you decide that a 24 month loan is right for you, it's time to start thinking about how you will pay it back. A good practice is to look at what your monthly repayments will be given the loan terms you want, and to draw up a budget that will allow you to repay on time. By going through your income and expenses, you can get a good sense of what you can afford to repay each month. And don't forget to budget yourself a financial buffer! You never know when an unexpected expense might arise, and you don't want to find yourself short.
As a personal loan, a 24 month loan can be used for a wide range of purposes. Because it is paid off over a longer period than a shorter loan like a payday loan, a 24 month loan might be appropriate for a larger expense, like a small renovation or a car. The important thing is to make sure that the expense you’re using your loan for is necessary. A 24 month commitment to repay your loan is a serious responsibility; failing to repay can have serious consequences for your credit and your future ability to take out loans.
The length of your loan can be viewed as a function of how much you are capable of paying each repayment period. For instance, if you think that you will be able to repay your desired loan amount plus interest by your next paycheque, a payday loan may be appropriate. For a larger loan, you may need more time to repay. It always makes sense to calculate how much you can comfortably pay back each repayment period, and compare that to the various loans available to you. The best option may be the one whose repayment period is long enough that you feel confident you will be able to make your payments on time.
A good way to make sure that you are capable of repaying your loan is to put together a budget that incorporates your income and expenses. Using this budget, you can calculate how much money you have left over each month. Leaving aside some extra cash in case of emergencies, you can budget some of that surplus towards your monthly repayments. Just make sure that you leave yourself a comfortable margin so that, if circumstances change, you aren't left with loan repayments that are too high for you to adapt to. Regularly revisiting your budget throughout your repayment will help you make adjustments to your spending, allowing you to make sure that you're always able to make your payments on time.
The information in this article is provided for education and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness or fitness for any particular purpose. The information in this article is not intended to be and does not constitute financial or any other advice. The information in this article is general in nature and is not specific to you the user or anyone else.