Are you in urgent need of money? Are you hesitant to borrow money from your friends and families? Is it better to go for personal loans Singapore? A personal loan allows you to borrow money from a financial institution.
Three types of personal loan types approved in Singapore
However, you need to meet minimal requirements for loan approval. The bank approving personal loans will look after your credit score as well. It is helpful to know what the lenders consider when deciding on the RI. If you need cash, it is rewarding to learn the loan types to use in Singapore.
Regardless of the amount you borrow, go for an authenticated and licensed money lender.
What is a personal loan?
A personal loan is an unsecured loan that doesn’t need to place any collateral or asset in the mortgage. In addition, you can use your loan amount to pay for a wedding, home expenses, wedding installment, investment plans, and debt.
Before you decide on a loan, you should know the type of personal loan available. Here is a list of loans that you can borrow in Singapore.
It is available in different names, depending on the types of licensed loan approving firms. Personal loans Singapore gets paid in small installments. The tenure is 60 months. Further, it involves a processing fee amounts from 0% to 10% of the loan amount.
If you find yourself stuck in an unavoidable expense, outstanding debts, or medical emergencies, go for term loans. Use the loan amount on personal development, education, travel, leisure, weddings, or medical emergencies.
A personal line of credit
A personal line of credit is any loan type that lets you withdraw money from the account at any point in time. If you need instant cash, you can go for a credible personal loan. It is worth noting that the maximum loan amount is up to two times your monthly income.
The drawback of this type of Personal loans Singapore comes with an annual fee. It varies from sixty to one hundred and twenty dollars per month. Besides, it charges you from the moment you withdraw the amount.
The bonus is that you can withdraw the money from an ATM, or physical bank branch, Withdraw it from internet banking. The type of personal loan in Singapore comes with a rate of interest of 18% to 22% p.a.
It charges you money as long as you keep the amount with you.
A balance transfer is the type of personal loan that lets you bifurcate the amount in an existing debt into multiple credit cards. This type of loans helps you lower your interest rate and pay back your debt.
If you fall into credit card debt and pay an interest of 18%, it becomes tough to keep track of your credit payments. It is when a balance transfer comes into aid. It enables you to pay back your credit card debt within a month. The interest can be as low as 0%.
In simple terms, if you can pay back before the tenure of a balance transfer, you don’t need to pay any interest.
The repayment conditions of balance transfer varied from one lender to another. In general, a licensed money lender gives you a maximum of eighteen months to repay the loan amount.
What is the necessity of a licensed money lender list?
Licensed lenders in Singapore cannot ask for loan repayment via text messages. Licensed lenders cannot force payment on phone calls or social media sites.
Besides, a licensed money lender has to meet the borrower and conduct a face-to-face ID verification before granting money. You can track the legal lenders tied to the licensed money lender list.