April 12, 2024

Business Bib

Business & Finance Blog

Tips about how to apply for personal loans in Singapore

4 min read

Singapore ranks as one of the apex financial centers in the world. In Singapore, the banks present a broad range of solutions, banking products, and services including personal loans. These loans are tailor-made to help the people of Singapore in coping up with their financial needs at any moment of crisis. The interest rates offered can be fairly attractive and the customers can also have the benefit of flexible repayment tenures to pay off the borrowed amount with low-interest rates.

It is not only restricted to the banks and financial institutions in Singapore, but the licensed and legally authorized money lenders also offer personal loans in Singapore. There are many unauthorized money lenders which offer personal loans to the people in need of cash but taking a personal loan from them can turn out to be risky. As they are not legally authorized licensed money lenders so there are chances of you to get cheated by them. So, the best practice would be taking a loan from the legalized licensed holders in case of the money lenders or any financial institutions.

There are different types of personal loans that are available in Singapore which involves the following: Term loans are the traditional loan products which are mainly offered by the banks and traditional financial institutions in the country to the customers with the money they need. The customers are required to pay back the money with the applicable interest within the term specified in their signed contract. Many of the credit card issuers in Singapore offer their customers instant cash as a loan against 100 percent of the available credit on their card. Within no time, the loan applications are approved and the money is transferred directly to the bank account of the applicant. Some of the popular banks operating in the country do not offer personal loans and instead, they offer a personal line of revolving credit that provides people with access to funds every month for accessing more funds.

Some of the top banks in Singapore offer an overdraft protection facility with their savings account with the help of which they can take out more money as a loan than which is available in their account. The customers are expected to pay the additional money that is withdrawn through equated monthly installments (EMIs). One of the recognized companies like Easy Credit can give you the money within an hour if all the proof checking’s of your identification and criteria match duly. They also have different schemes for loans with different rates of interest which you can go through before applying for a personal loan on their website. You can visit Easy Find website to get more details and also the customer reviews and feedbacks before borrowing money from them.

If you have a steady income and a good credit score, you are eligible to approach any of the banks in the country and apply for a persona loan. You can apply for a personal loan online or offline, either visit any of their branches or contact their customer support team. Some of the banks will also offer you the option of applying for the loan online on their website. The loan amount of cash offered will depend on three points, like, your annual income, credit history and overall profile as a borrower. You can look forward to borrowing a higher amount of personal loan if you have a high annual income along with a lucrative credit score. Similarly, the interest rates presented to you will also depend on the factors mentioned above and you can also avail a better rate if you are one of the loyal customers of the bank i.e. if you have already opted for any of the other products offered by the bank.

In Singapore, the law for personal loans has been designed in such a way that if you are taking loan from the licensed moneylenders or company, it requires the authorized moneylenders or that company to explain the terms and conditions of the loan to you for which you have applied in a language that you can understand, so listen and read carefully, and make certain you are comfortable with the loan terms. If you have any doubts, feel free to clarify your points of doubt from them.

If you are still not happy to proceed, then you can seek around until you discover a licensed moneylender you are satisfied with. The interest rates that the licensed moneylender applies to the principal amount of loan borrowed by you can be as high as 4% a month. So be sure to have a loan of the absolute minimum you need, and for the shortest loan tenure, you can deal with. However, some companies like the Easy Credit offers you the loan at a minimum interest rate so that the people of the low-income group can also apply for a loan and can go ahead to overcome their financial crisis. For best knowledge about their interest rates, terms and conditions, and various loan policies you can visit Easy Credit website.