{"id":5387,"date":"2022-09-04T00:00:00","date_gmt":"2022-09-04T00:00:00","guid":{"rendered":"https:\/\/thewealthcircle.com\/?p=5387"},"modified":"2022-09-04T13:24:17","modified_gmt":"2022-09-04T13:24:17","slug":"what-is-an-in-house-loan-all-you-need-to-know","status":"publish","type":"post","link":"https:\/\/kiiky.com\/wealth\/what-is-an-in-house-loan-all-you-need-to-know\/","title":{"rendered":"What is an in house loan? All you need to know","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n

Sometimes, raising the money to buy or build your dream house may seem daunting but with an In-house loan, you can be so sure to get your dream house soon. You may ask, what is an in-house loan and how does it work? Alright, in the lines to come, I’ll show you.<\/p>\n\n\n\n

The process of money lending has gone through several stages of democratization and consequently, big banks used to have a monopoly on selling quality credit products.<\/p>\n\n\n\n

Luckily for all of us, technology has helped us find alternative lending options. In-house loans and financing is one of those options. <\/p>\n\n\n\n

This option helps a venture offer more payment flexibility and helps them score more business even when clients don\u2019t have all the money to pay upfront. <\/p>\n\n\n\n

Interestingly, this practice helps to keep clients by helping them get what they need on conditions that work for them, without having to deal with the middleman\u2019s rates and fees.<\/p>\n\n\n\n

Here in this article, you’ll learn more about what an In-house loan is. Just keep reading. <\/p>\n\n\n\n

Meanwhile, here’s the table of content below for an overview of what to expect in this article.<\/p>\n\n\n\n

What is an In-house loan?<\/strong><\/span><\/h2>\n\n\n\n

In-house financing is a type of loan offered by a business directly to a customer, allowing them to purchase goods and services offered by the business. <\/p>\n\n\n\n

Usually, this kind of financing eliminates the need to secure a loan through a financial institution.<\/p>\n\n\n\n

A typical analogy of how In-house loans work is this: If I want to purchase the latest Ford Edge which costs about $38,100, and I don’t have the complete money, what I’ll simply do is to approach Ford Automobile Company for an In-house loan.<\/p>\n\n\n\n

The corporation will look through my application to see if I’m creditworthy. Being creditworthy means whether I’m able to pay back the money. They’d like to know if I have a steady flow of income to pay back the money. <\/p>\n\n\n\n

If I satisfy all that they require of me then, I’ll be given the amount of money I want so I can really purchase their product.<\/p>\n\n\n\n

Read: 23 Small Business Ideas for Men with High Profit<\/a><\/strong><\/p>\n\n\n\n

Which is better between in house or bank financing?<\/strong><\/span><\/h2>\n\n\n\n

Which is better between taking a loan from the bank<\/a> and taking an In house loan? Oh, well, both are very good ideas to take if you are looking for a loan. <\/p>\n\n\n\n

So the choice you make largely depends on what your repayment plan is. If you don’t wish to repay the money soon, then you’d need to take a bank loan. Usually, In-house loans have shorter repayment plans. <\/p>\n\n\n\n

So the main difference between bank financing and in-house financing is that bank loans have longer payment terms while In-house is shorter. <\/p>\n\n\n\n

Also Read: 17 Brilliant Ideas to Pay Off Debt Faster than Ever<\/a><\/strong><\/p>\n\n\n\n

You can choose to pay out the bank loan amount in as short as five years, or as long as 20 years while in-house financing allows you to pay at a maximum duration of five years.<\/p>\n\n\n\n

Is In-house financing a good idea?<\/strong><\/span><\/h2>\n\n\n\n

Yes, Like you want to guess, It is absolutely a good idea to take an in-house loan. You will find out why I say so. Just ensure to follow me very closely.<\/p>\n\n\n\n

Pros and Cons of In-house Loans<\/strong><\/span><\/h2>\n\n\n\n

Here in this section, we’ll look at some of the advantages and disadvantages of taking an In-house loan. Just follow through.<\/p>\n\n\n\n

Pros <\/span><\/h3>\n\n\n\n

Below are some of the advantages of taking in-house financing.<\/p>\n\n\n\n