Finding the best Singapore Loan Company can be a daunting task, given there are numerous lenders and companies to choose from. There are different criteria which are taken into consideration like eligibility, interest rate, processing fee and others which are likely to help you decide on the lender or the loan company.
Here are a few tips which can be considered when you are choosing a good lender.
Loan amount and eligibility
The amount of the loan which you are eligible for will depend upon your monthly income and the value of the property. Typically, the amount of loan which you will get would be around 80-85% of the total value of the property or any other commodity which you wish to buy. If the amount is not too high, you can even get a loan of 90% of the total amount. All this is subject to the income of the person, which will be assessed by the Singapore Loan Company or the lender.
Before applying for the loan, you should consider the total interest you will have to pay. You can shop around to find out about the rates and then select the most competitive one. You should also find out if the rates are floating or fixed. When the rates are fixed, there are no fluctuations. The floating rates can vary from time-to-time according to the market rates. For a shorter term, such as two to five years, the fixed rate is the best. For periods longer than five years, it is best to opt for the floating rates.
Processing charges and prepayment
The processing fees are the charges which are paid to the bank for processing the loan. This can vary from lenders or companies. The Singapore Loan Company also sets certain terms and conditions related to the prepayment. The borrowers must clarify all the terms and conditions pertaining to the settlement or foreclosing the outstanding amount, transferring the balance to another lender and others before you finalize the lender. There are also certain processing and legal fees which are associated with approvals such as home loans.
The time taken to sanction and disburse the loans depends from one lender to another. The best Singapore Loan Company disburses the loan as soon as possible. Some lenders take around five days to sanction a loan. Everything will be done in time as long as all the necessary documentation and procedure is followed properly.