Personal Loan

Personal Loan is becoming a very popular alternative for people who are in financial crisis due to several instances such as reduce of income due to recession period, loss in a business and so on. Hence, personal loans often provide the best solution as it is easy and fast to get approved. However, before considering the loan, one must do research on various loan quotes from the different banks and choose the one which most suits your needs and requirements.  

Personal Loan, also known as unsecured loan, tends to have higher interest than secured loan. 

A secured loan simply means using a personal property as collateral, which, in the event that the loan is being defaulted, the creditor will be able to take over the ownership of the property, hence a lower interest rate than personal loans.On the other hand, personal loan do not have any collateral which in turn, increases the risk for creditor that the borrower may not be able to repay the loan. Therefore creditors will adjust the interest rates accordingly to higher amounts to decrease the risks of their loss. 

However, for most cases, the creditors will check on the credit score of the person to determine the eligibility for a personal loan. For people with bad credit score, a secured loan will be recommended as it is much easier to qualify for as there collateral is involved and the creditors do not have to take much risk. 

In Singapore, banks have different ways of attracting potential personal loan customers and those listed below are some of the common traits found in the banks for a person who wants to take a personal loan with them. 

§Get up to 4x your monthly income. There will be a cap of a maximum amount based on different banks or whichever is lower.

§Fast processing ranging from 24 to 48 hours so that you can get the cash as soon as possible for any purpose of usage.

§Flexible loan types tailored to your needs; Extended loan tenor with fixed monthly repayments or no minimum monthly repayment so that you can manage your cash flow with a greater peace of mind.

§Age requirement of 21 years old and above for loans application and a minimum income of a certain amount set by different banks per annum.

 
§Low interest rates by individual banks. 

Personal loan aims in helping individuals achieving financial freedom no matter what circumstances you are in.