Singapore money lenders offer a variety of loans. Out of all, some loans are specifically customized by keeping the citizens’ needs in mind, such as student loans and housing loans. However, personal loans can be utilized by anyone regardless of the purpose.
On this note, monthly installment loans are also offered by the government of Singapore. These are a type of payday loan that is easily available in the market as well as could fulfill all the financial needs. In this article, we are covering everything that you need to know about these monthly installment loans.
How Does Monthly Installment Loan Work?
The monthly installment works on a simple concept of taking cash from a loan and making monthly repayments in the form of fixed interest rates. For this, you will need to seek a personal loan from a Pte Ltd company in Singapore. Consulting with such a company takes your loan process in a straightforward manner without the need for a guarantor.
Now, depending on your income level as well as the money borrowed, the monthly repayment of loans differs for every person. The duration of this can be between 36-84 months.
What is the Purpose of Monthly Installment Loan?
The reasons for applying for monthly installment loans Singapore can be varied. Some of the reasons are as follows:
- Urgent Emergency
An emergency can be an unexpected reason that can put a huge impact on the financial plan. In such a case, applying for a monthly installment loan in Singapore can help you with medical emergencies or any other stressful event.
- Credit Card Debts
Next, a monthly installment loan is also an effective way to repay credit card debt. With this type of loan, you can choose the installment amount as well as tenure. So, it allows you to pay as per your need and time frame.
- Debt Consolidation
A debt consolidation plan or DCP encompasses everything from your unsecured and credit card debts into one account. Also, the interest rates with packages are also dynamic and depend greatly on your loan amount, period as well as your income and citizen status.
- New Property
If you are thinking of buying a property or settling in a new home, a monthly installment loan can be beneficial for you. To do this, you can contact a money lender and get information about the maximum amount of loan for which you are eligible. This makes it easy for you to buy your dream house.
- Business Aid
If you have a business idea in mind or you are looking to expand your business, a monthly installment loan can help you in achieving your goals.
What are the Benefits of Monthly Installment Loans Singapore?
- Higher Borrowing Limit
Unlike other types of loans, a monthly loan will be able to lend you up to 6 times of what you are earning depending on your income.
- Fixed Interest Amount
The maximum interest rate for a monthly loan is up to 4% regardless of the type of loan, that is, secured or unsecured.
- Quick Cash
As mentioned earlier, the application process for a monthly loan is easy and straightforward and it hardly takes an hour. So, you can receive the money as soon as your in-person meeting with the banking officer is done and the agreement is signed.
- Flexible Repayment Terms
The best part about this loan is that it comes with the flexibility of repayment at comfortable installments. It is up to you to select a small amount of monthly repayment at a fixed interest rate. This enables you to customize your loan according to your financial situation.
- Does Not Depend On Your Credit Score
If you have a poor credit score and are worried about qualifying for a personal loan, the monthly installment loan can help. When applying for such a loan, the moneylender aside from your credit scores takes your financial situation as well as your ability to repay into consideration. Having said that, you need to have income proof. Also, paying your loan on time might also improve your chances of increasing your credit scores.
What are Eligibility and Requirements?
You are eligible for the monthly installment loan if you:
- Are 18 years of age or older.
- Have a minimum monthly income of S$1,500 for citizens and permanent residents and $2000 for foreigners.
The documents which you should have are:
- Identity Card (for Citizen)
- Passport and work Permit (for Foreigner)
- Proof of Residence
- Proof of Employment
- Proof of Income
- Last 3 month’s salary slip
- SingPass (To log into CPF, HDB, IRAS website)
Where Can You Apply for the Installment Loans in Singapore?
You can find a lot of loan comparison websites in Singapore that can help you in refining your search for the best licensed moneylender based on your duration of installment, rate of interest, and so forth.
For this, you can also use a loan calculator to check your eligibility for a personal loan and the repayment structure. This way, you will get a rough estimate of the monthly repayment amount and a fixed interest rate which you can opt for.
Lastly, the best you can do is get in touch with a licensed money lender in Singapore such as Avis Credit Pte Ltd.
Avis Credit is a licensed money lending company in Singapore that offers a variety of loans including personal loans, business loans, payday loans, and education loans at a considerable amount of interest. With over 12 years of industry-leading experience, the money lending experts have been providing reliable and flexible loan solutions since 2008. The team of professionals at Avis Credit can help you with financial advice assessing your current financial situation and offer the best-suited plan tailored as per your needs. All you have to do is fill up their online application form, get your documents verified and collect your loan in person from the registered office. Visit them here to know more.