Financial troubles are something that most of us have a deal in life in certain situations. No matter how financially prudent we are, sometimes life makes us stand in a place where we are helpless.
In this situation, many of us look for a personal loan to fulfill financial needs. Many things need to be considered for taking a personal loan in Singapore. This article helps to understand the maximum amount you can borrow for a personal loan, salary, repayment schedule, interest rate, etc.
What is a personal loan?
A secured loan requires an asset; whereas the personal loan is the unsecured loan that is not tied to any of the assets, hence the interest rate tends to be higher when compared to the secured loan. It is the fastest way to get access to money.
To get approved for an unsecured or personal loan, typically you need to maintain a good credit score and best repayment history. But the loan amounts of personal loan amount must be smaller since we don’t provide any collateral.
Need for a personal loan
The individual can get a personal loan only for emergency needs as the interest rate is comparatively high when compared to other loans. When you choose a personal loan it is essential to consider processing fees, interest rate, tenure, repayment schedule, and consequences of missing payments.
Types of Personal loans
There are many kinds of loans that can be technically considered personal loans in Singapore. Here are the loans which one individual must choose according to his needs.
Personal term loan
In this type of loan, an individual can borrow a specific sum of amount from the bank and must repay it with a fixed amount along with the interest. The individual can choose the tenure as per their schedule and pay it accordingly.
Line of Credit
Line of Credit is also called a credit line, cash line, revolving loan or flexible repayment loan. This type of loan is when the bank agrees to provide a pre-approved amount of money for you that you can withdraw at the time of your need.
The bank provides an option of withdrawing limit as per the salary and the individual can withdraw the amount as a whole or just as a part. The amount of interest is calculated as per the withdraw limit.
There is no period for this type of loan, you can withdraw and repay as quick as you can. The interest rate is decreased when you repay as soon. To know more about this Line of credit visit easy credit.
You can withdraw the fund as per the requirement and you can repay as quickly as you can like as a part or like the full sum. It is the most convenient and comfortable loan for an individual. But remember more money you owe, you are supposed to pay more interest.
A balance transfer is a loan that is used to manage credit debt. A balance transfer allows moving your existing credit card debt to a new credit card with 0% interest charges for a stipulated time. It is usually 6 months to 12 months.
It is a kind of loan that helps to pay off the debt from the existing or old credit card using a new credit card with a 0% interest rate. To know more details about this Bank transfer Visit Easy Credit.
The ultimate aim of this balance transfer is to help and reduce the amount of interest you are charged for the credit card. It is a solid repayment plan and you can pay off debt before 0% interest period turns out.
Debt consolidation loan
If you take money from multiple banks then you might consider taking a debt consolidation loan. The bank helps to pay off all your debts and helps to take a wholesome of money in a single bank.
This is also a part of a personal loan that helps to maintain a debt account with one bank instead of multiple accounts in multiple banks. It is the best option that allows managing outgoing expenditure in one account with just one repayment option.
Debt consolidation loan helps to deal with single fees with single interest rates instead of multiple fees with multiple interest rates in multiple banks. This is the best option for personal loans and Credit card debts that are strictly regulated in Singapore.
The person who applies for debt consolidation loan must owe at least 12 times of monthly salary, to know more Visit Easy Credit.
It is necessary to research the bank details and offers through online or through referral before choosing the prominent bank. The reason is each bank offers unique features and certain terms to its privileged customers. For more details about Singapore loan, you can Visit Easy Credit for a personal loan.