Money lending in Singapore
A personal loan is a lending of consumer credit from a moneylender in singapore which is granted for personal use. Personal loans can be granted for personal things such as buying a car, paying down your holiday debt or paying towards your new home. Depending on your circumstances, a personal loan may be beneficial for you.
Personal loans allow you to be flexible with your cash. They are multipurpose and so can be used for various kinds of purposes, including groceries, paying for a car or things that you have your eye set on in the shops.
Apply with ease
Applying for these loans does not take a lot of paperwork to complete, nor does it take long to receive permission as to whether or not you are approved. If you are approved for the loan then your loan amount should only take a few days to reflect on your account, sometimes only 24 hours.
No risk to personal property
There are personal loans that are secured and ones that are not. With regard to secured personal loans, they will not repossess any of your assets if you cannot repay your debts. They are already backed by collateral. The unsecured personal loans usually do not have your personal property at risk either, so you do not have to worry when it comes to that point.
Although these loans have some benefits, there are still other things to consider.
Rates and payments are higher
Personal loans are risky loans because of the fact that they are not secured by property, so the rates and payments are higher than other loans. This is why you got to make sure that the monthly payments are always within your budget.
Your credit report
Your credit score has to be high in order to get a personal loan. With the high interest rates and payments, you have to have a good credit score otherwise they will not be the least bit interested in lending you this loan. If they do decide to give you a loan, they might limit the amount of money they lend you due to a low credit score. This is also because the loans are quite risky in the first place.
No part payments
These loans can work out quite expensive, as you end up paying the loan for the entire tenure of the loan. You pay a set amount per month and so lenders do not allow part payments.
Personal loans are no problem to have; it only depends on your circumstances. Drawing cash from a credit card is much more expensive than a personal loan, so it is advisable to apply for a personal loan than to get the cash from a credit card.