Before actually deciding to get a loan, you need to know the specific use of the cash. This will make it easier when you are making a loan choice. If you need to do something urgently, and you don’t have the required funds, you can consider taking a personal loan.
However, if you have never taken up a personal loan before, it can seem like a foreign word. In this article, we will provide a brief of what a personal loan is, why you need it, and the benefits. It is a guide to help you make a decisive decision on taking up a personal loan.
What Is A Personal Loan?
A personal loan is funds gotten from lenders to borrowers for personal needs. The loans are then paid in monthly installments with some bit of interest. The amount of the personal loan will determine the payment period of the loan.
Personal loans are unsecured types of loans. Therefore, you won’t need to provide anything like a car or house as collateral. This is unlike when you are getting a car or mortgage loan where you need to provide collateral since they are secured types of loans.
Instead of the collateral, you find that the financial institutions check your credit score and history to determine whether you can comfortably pay up the loan. It can be a bit hard to get a personal loan with a weak credit score.
However, when you get it, you might incur a high-interest rate. Therefore, always try to pay up and on time to prevent destroying your credit score.
Where to Get A Personal Loan In Singapore
Personal loans can help to solve many financial issues. You can approach these institutions to get the right financial assistance
If you are loyal to a certain bank, you can approach them first to see whether you can get a good loan from them. However, also ensure to check the interest rates and repayment period to ensure you don’t feel strained while paying up the loan.
There are many banks in Singapore, therefore, try to form a good relationship with one ideal one, and it will be easier to get a personal loan from them.
2. Virtual Banks
You can also approach virtual banks for personal loans. Unlike normal banks that have physical locations, virtual banks provide all their service online. They use some security technologies to offer their services at lower expenses.
These work the same as mobile loan apps. However, you need to be careful not to fall victim to the loan sharks that can frustrate you. They are easier to approach if you want to get money fast.
3. Financial Institutions
In Singapore, there are certain financial institutions that you can approach. They tend to offer credit loans, personal loans, and credit card loans. Therefore, it can be easy to get a personal loan. The financial institutions also tend to have some flexible interest rates that make it easier to get cash from them.
However, make sure you check the repayment period and what you are likely to pay after the end of the duration. There are many reliable money lending companies in this category. However, first, verify whether they are registered and licensed before you get a personal loan from them.
4. Online Finance Institutions
Just like virtual banks, there are also online financial institutions. They tend to be like mobile banking loan financial institutions. You just need to fill up some fields and get your loan in an instant.
Their interest rates are also favorable. However, you need to read the terms and conditions to see whether you can adhere to them. In some cases, you find that they have zero transaction fees.
A Personal Loan Is Ideal If You Want It For:
- Debt consolidation
- Refinancing an already existing loan
- Home improvements
- Medical bills
- Urgent emergencies
The Benefits Of A Personal Loan
Getting a personal loan can be beneficial for a couple of reasons:
1. Flexible Repayment Terms
In most cases, personal loans require to be paid after a certain duration. Therefore, you are assured that you can pay it in installments in a couple of months. This is as compared to having to pay it at once.
For example, with payday loans, you have to pay after your salary comes in. however, with a personal loan, there is the freedom of paying in installments.
Therefore, you can make a purchase instantly and pay for the money used to buy it in installments from a reputable money lending company or bank. It’s your choice.
2. Freedom in Using The Personal Loan
You can use the personal loan how you wish without any kind of restriction. This is as compared to having different kinds of loans like a mortgage or car loan. You can use it in any way that you wish without any restrictions.
With the car loan, you will need to show you specifically bought a car. However, with a personal loan, if urgencies change, you can use it to pay for something else. Personal loans don’t have any kind of restriction.
3. Fast Approval
It is so easy to have your loan approved fast. However, you need to provide the right credentials to ensure that they approve your loan when you have been genuine with them.
Although, this is also determinant of your credit score. If you have a poor credit score, it can extend the period in which your loan application is approved.
Getting a personal loan is good for borrowers, however, if you use it for the wrong reason rather than the intended it can be bad. Therefore, if you want to take a personal loan, consider using it for the right purposes to be on the safe side.
You can also get a personal loan for debt consolidation. This will reduce the debts you have with other financial institutions and just leave you with one financial or money lending company. Get assistance from a personal loan moneylender in Singapore.