What Is Singapore Personal Loan?
Singaporeans or foreigners working in Singapore that are in urgent need of cash. This they may need for purposes such as to pay off your bills, home renovation and car repairs. You could be without access to banking institutions owing to having bad credit records. It could also be that you do not hold any assets or physical properties to use as collateral. In such a situation, then you are likely to be searching the net for a Singapore personal loan. This is provided by licensed moneylenders.
A personal loan, usually unsecured loan type. This means that a borrower does not need to put up any collateral. This is usually properties or assets such as your home or even cars. The collateral is to guarantee the amount you borrow. However, unlike the secured type of loans. This personal loan generally comes with higher rates of interest.
The reason being there is a higher risk involved in lending the loan amount. In so doing, licensed moneylenders who offer the unsecured personal loan types. They are assured that they will at the very least, have a portion of their money. That is should something go wrong during the repayment period.
In Singapore, there are different types of unsecured personal loans that you could consider. Determining the right loan that suits your financial needs best. It will depend on a number of factors. These you will need to take into account and includes the interest structure of the loan.
Also the inclusive rates of interest, repayment method, as well as other inclusive charges. Not forgetting additional charges.
Here are some options that you may consider for your personal loan:
When you are taking out the signature loan. What you need to do is simply sign the loan document and provide proof. In so doing, you will get the loan money you urgently need. The signature loan requires that you use your signature. You need to also give your word that you will repay it. This will allow for the loan to get approved.
This loan type might require that you have a good credit history. Sometimes you might need to have a co-signer who will take a commitment note. They thus will act as a kind of guarantee. That is in case the main borrower fails to pay off the loan on the set terms.
Signature loans often will attract higher rates of interest (a lot higher compared to those on credit cards). It is for this reason that you only consider this type of loan when you urgently need cash. Also before taking on this loan type make sure that you have possible resources. As well as the income to repay it on time.
When you are taking out the payday loan you do not need to worry anymore. Especially for those individuals with bad credit records. Your credit score and financial ranking play little to no role. More so when you consider taking the payday loan. As the name suggests, a payday loan is the type of loan that requires that you repay it once you get your next pay. This loan type is mostly a short-term kind of personal loan. This loan allows many borrowers to access money.
What is important when getting this loan is that you are getting a salary. This needs to be a steady job to help you be able to pay off your debts in full. It is a very favorable way to access a loan as it requires little to no credit record checks. In addition, there is minimal paperwork needed. These are things like your employment letter and also your payslip.
It is advisable that you be cautious about is the loan’s included rate of interest. Therefore, before you decide on this form of a loan. Make sure that you have taken your time to shop around. This will help you see some of the loan options available. These need to loan options that will offer you the lowest rate of interest deal. Usually, a longstanding client will get to enjoy major interest rate adjustments from licensed moneylenders in Singapore.
This is like taking out a loan done literally through the use of credit cards. A credit card is another way of getting unsecured personal loans. This allows a customer to borrow any amount of loan money they need. That is when a financial need arises provided that the loan amount taken is within the line of credit limit.
Various banking institutions will offer different kinds of credit cards. Some of these include the no annual charges credit cards, low-interest credit cards, reward credit cards, etc. With the wide variety of credit cards available. It makes it easy for you to find the option that will suit your financial requirements.
Peer – To – Peer Loan
This type of personal loan is often known as P2PL. This loan is classified as an alternative lending service. Peer-to-peer type of loan is provided through an online platform. This is normally offered by an ‘unrelated’ individual that is involved in the peer-to-peer type of lending.
A big part of the P2P loan processing is automated. Thus it makes it possible for borrowers to get a lower rate of interest. This also helps the lenders to get higher returns. This is because of the decreased overhead costs and cheap lending service. This is especially so when compared to the mainstream money lending services.
Even with the above mentioned personal loan choices available. It is up to a borrower to choose the right and best fit for their financial needs. And most important of all – choose wisely!
Even when you are faced with an emergency that requires your financial attention. Realize that there are many personal loans options available in Singapore. But before you settle for a particular loan type, ensure that you have a steady source of income.
Also, make sure that you repay loans you take out on time and in full. Some of the loans you can access are payday loans, signature loans, P2PL and credit cards.