What should be kept in mind during a personal loan
If you are finding yourself stuck in financial crises, or you have to pay for a medical emergency, paying credit card and other bills, and many more challenging situations where you need money. A personal loan can help you overcome such financial needs.
How to apply for a personal loan:
One can easily apply for a personal loan Singapore either in banks or with help from licensed moneylenders. Getting approval for a personal loan is easy if you have proper documents and meet the criteria of banks. First, submit your application to the bank and wait for approval. Complete the procedure and collect the loan amount. This whole procedure does not take a long time.
Consider these points during personal loan:
There are too many personal loans offered in Singapore from banks and licensed moneylenders. You may find it difficult to select the right way and option for your needs. Moreover, there are numerous points that you need to consider before applying and taking up a personal loan from anywhere.
- First of all, you must ask yourself if you need any personal loan before you apply for it. And, if you find that there is an urgent need for money, such as for your unexpected medical emergencies, you must take up a personal loan.
- One of the vital factors that have to be looked at seriously is interest rates on the personal loan. Because it will affect the total cost, you would have to repay the loan. The higher the interest rate on that amount, the higher the total price you will have to repay later, and it may cost you too much. Hence, it is essential to look for the best and minimum interest rate before applying and accepting the loan amount.
- Before taking up a personal loan, you have been sure that you will be able to repay the loan that includes the total cost of the personal loan by adding the principal amount, the interest, and any administrative fees. Become completely sure about the amount of interest you will have to repay before you work out the total borrowing costs. Also, remember one thing that each late repayment will incur additional late fees to final repayment. If you are opting to take up a personal loan from a licensed Singapore moneylender then, be ready to pay more interest amounts because licensed money lenders have high-interest rates and administrative fees. But at the same time, you will get a personal loan most easily.
- One more factor that you must take into consideration is the loan repayment duration. It refers to the period you will be given to repay the personal loan amount with interest. Whatever loan repayment duration you choose will directly affect the installment amount, interest, and total repayment amount; henceforth, make sure that you can comfortably repay the loan amount and meet the tenure that you have chosen, before taking the loan. Additionally, remember that the frequency of installments of repayment depends on the terms and conditions of your loan contract that can be monthly, quarterly, or yearly.
- You need to match the eligibility criteria of banks to take up a personal loan. The common criteria that you need to qualify for getting approval for a personal loan in Singapore are that you must be at least 21 years old but not more than 65 years old and have an annual income of at least S$30,000 for banks. If you cannot meet that annual income criterion, there is a choice of top licensed moneylenders in Singapore. These money lenders will not ask for such details.
To sum up, taking a loan is not a wrong decision but consider the points mentioned above. Also, be careful about the risks and fraud involved in such loan cases.