In this article, we will discuss the things you need to look for when taking a personal loan in Singapore. Also, we will discuss why people take a loan from a licensed lender, when to take a loan, and how to choose the right loan.
Why do people take a loan from a licensed lender in Singapore?
Many people still think that personal loans are a mystery, and they are confused about certain things. First, is that many people don’t know the purpose for which you take them? Then comes the question about how can they select the right personal loan for themselves.
A personal loan is a sum of money that you borrow from either a licensed money lender 24 hours. Also, you can take this kind of loan from banks and other people in the market. These are the kind of loan which have to repay to the lender in instalments. This means that the total amount is split into a small portion which is paid every month.
This kind of service is done till the time when the principal amount of the loan has been met. Many people in this world will need a personal loan at some point in their life. The main reason why this kind of loan is taken is to meet any expenses that you are facing.
Licensed lenders are the option that you will take when you need to meet any kind of money required on an urgent basis. This means that if you need money in an emergency, this is the person from which you will take the loan. It is because the amount of tie it takes for these lenders to complete the process is at least 5 minutes. This means that you can apply for a loan and just wait for 5 – 10 minutes and get the money you have requested.
Why would someone need a personal loan?
There are many reasons why a person will take a personal loan for themselves. Here is the list of some of the reasons why people commonly take this personal loan for.
- For the wedding, education or vacation
These are some of the most common things or reasons for which people take a personal loan. If you live in Singapore, you will surely know one thing that it is a very expensive country. So if you are planning to keep a wedding here in Singapore, then you might need to take a personal loan. This is because the loan money will cover the expenses of the rental place, decoration, and also the food. This will help you to pay the amount which will be used in conducting the marriage.
Also, if you are going on a vacation, you can take this loan for safety purposes if you run short on money. They will cover any kind of expense that you need to have cover for. You can take this kind of loan to pay for the fees of the school or the college.
- For your credit card bills
You can take a personal loan if you want to repay your credit card bills. This is because these are the kind of bills that will cost you more money than you imagine. Sometimes this bill might even exceed more than a million if a person has not paid in a long time. That is why to keep security. You can take a personal loan to pay the full amount of the bill back. This kind of loan will make it easy for the person to pay back the credit card bills. This will also help the borrower to relieve a lot of stress from their shoulders.
- For emergencies
You never know when an emergency might occur, and you will need money. This is why when an emergency occurs. It will be a good idea to take a personal loan. This is because the loan will be the one to meet the expense that you are facing. The expense can be of anything, but mostly the expense which is urgent and heavy is medical. This is why you need to take a personal loan to take care of the expense that you are facing.
How to choose the right personal loan in Singapore?
Here is a list of things that can help you select the right personal loan for you in Singapore.
- Interest rate
These are the percentages that they will take from you when you are paying your instalment. The interest is taken for a whole year, depending on the period of the loan. Then this interest is broken down into months and needs to be paid by the borrower.
- Total cost
This is the total amount of cost that you will have to pay if you are taking a personal loan. It means it will contain everything from interest cost to the amount of the loan.
- Loan tenure
The total tenure of the loan will depend on the time for which you have taken the loan for. Many people take this kind of loan for either a year or two. So the total tenure of the loan will depend on the time you repay the loan principal.
- Eligibility criteria
Eligibility is known to be the most important criteria that you have to meet. Otherwise, the lender can revoke to give you any money or reject the loan application.
How to take a personal loan in Singapore?
Here is the list of steps you can use on how to apply personal loan in Singapore.
- The first step will be to select a lender which you think might give you the loan.
- Then you will have to approach them and fill out the details and provide documentation.
- They will then check everything and ask for the amount of loan you want.
- Then they will either accept and put the application further or reject your request.
- If you take a loan from a bank, it will take around a week or month to be approved and few minutes by using a lender.