There are many times when we need a little financial assistance, and in such a situation, you can go to a Singapore online money lender. There are thousands of online money lenders out there, and the government monitors their business, so there is no fear. You can apply for a personal loan which will help you out of any situation.
What is a personal loan?
Before you go ahead with the application process to take out a personal loan from Singapore’s legal money lender, try to understand what exactly it is all about. It is essentially a form of credit that will help you with any big purchase you have to make in your life. Personal loans are generally preferred over getting credit cards as they have lower interest rates. The loan-taking process is also easier when you are approaching a legal money lender. This is because the application process is quite fast, and it is more often than available as an unsecured loan. This means you do not have to put up collateral when you take out a personal loan.
Understanding personal loan rates of Singapore
Now that you have gotten a rough idea about a personal loan, you need to understand all the factors that affect different companies’ personal loan rates. When you are approaching the different license moneylenders of Singapore, you will find that there will be a variation of interest rates. Many factors affect it, and some of the more common ones are as follows:
- Whether the loan is secured or unsecured
Unlike a home or an automobile loan where the property you are purchasing acts like collateral, in personal loans, your good credit is the only factor that will affect whether you will secure a loan or not. For this reason, the company will ask you for a lot of details about your income as well as your income tax information. The licensed money lender has to be certain that your income will be sufficient for you to comfortably pay back the loan within the stipulated time before they agree to give you the loan. This is understandable as that is essentially no guarantee the company has except your job and tax information to make sure you will face any trouble paying back the money with interest.
You can also get secured personal loans, which will have better interest rates than any on a secured loan, but you will have to provide collateral in this case.
- The licensed money lender of Singapore of your choice
Personal loan rates are also influenced by the specific company that you are approaching for the loan. Different companies will fix different interest rates according to their company policy. In most cases, your income, as well as the status of your company, decides the kind of interest rates you would have to pay. People in higher-paying companies can take out a larger principal amount, and they will have a lower interest rate in most cases.
Therefore it will be to your benefit to jot down the names of perfume license money lending companies of Singapore and compare their interest rates to figure out the best one for yourself.
- Your Credit as well as Payment History
Because you are taking out a personal loan, the licensed money lender of Singapore will also require you to give your completed history as well as payment history as a part of the verification process. Your credit score is an important number that will determine the interest rate the company will charge you and whether the company will provide you with the loan at all. Therefore you must maintain a high credit score, and under no circumstances should you let your credit score drop below 750.
Things to keep in mind while taking out a personal loan
Other than the interest rates, you should keep in mind before taking out a personal loan. The first thing is that you should have a clear idea about why you want to take out a personal loan. Just because the company is not asking you why you are taking out this loan doesn’t mean you should take this freedom lightly. You must make a clear plan about how you will pay back the money as personal loans generally have a higher interest rate than other kinds of loans.
However, when you face an emergency and have to borrow money, this is the best part to go. Therefore, it is advisable that only during an emergency should you avail yourself of Singapore’s moneylenders’ services to get a personal loan to get yourself out of such a situation.
You must also familiarise yourself regarding all the other fees incurred when you are taking out a personal loan. Some of the other charges that you should know about are the annual fees, the tenure fee, and the late payment fees. Make sure you are reading all the company’s documents with utmost care to be aware of all the extra charges and fields you have to play along with the actual principal amount with interest.
Conclusion
Many different factors affect the personal loan rates of different money lending companies in Singapore. However, when approaching a licensed moneylender, you can be sure that the interest rate will not be above the government’s prescribed percentage. According to the Moneylender Act, the government has set a maximum limit for interest to protect the interests of the clients who are already facing a money crunch. You will not get these benefits when you go to an unlicensed moneylender.
Even if you find lucrative offers and low-interest rates from unlicensed money lenders, keep in mind that most of these companies are unscrupulous in their contracts. They will trap you with the fine print, and you won’t be able to take governmental assistance to get yourself out of such a situation. Therefore take heed and only trust a company that has been given a proper license by the government to legally give out personal loans to individuals facing financial trouble in their personal lives.
