Yes, you read that right! A loan, taken from the right financial institution and with appropriate planning, can surely be a game-changer when it comes to upgrading your life. Do you wish to buy that high-end laptop to boost your work? Or perhaps you need to make a nursery for your soon-to-come little one? Maybe you want to get married in that plush banquet hall? Whatever your reason may be, the best personal loan in Singapore can make it possible for you. But before finding out how a personal loan will turn around your life, let us help you with the basics.
So, what exactly is a personal loan?
The most important thing about a personal loan is, it does not require any collateral. So in that sense, it is an unsecured loan. This means that the lender will not ask you for any security or mortgage. But instead, they will check your credit score or creditworthiness.
And this is the reason you might want to consider choosing between a bank and a legal moneylender. If you have any doubts about your credit score, then it is advisable that you go for a legal money lender. Even otherwise, the loan application and approval processes that a licensed money lender follows are easier and convenient compared to banks. So ensure that you choose wisely.
A personal loan is also different from a credit card loan. A credit card loan does not have a fixed payment term. What’s more, in the case of credit card loans, the interest rate keeps fluctuating. In short, credit card loans are revolving. But as opposed to this, a personal loan has many benefits.
No collaterals. We just cannot emphasize this enough!
Interest rates are lower. If you wish to know more about the best personal loan in Singapore, you can search for ‘personal loan interest rate Singapore’ or ‘lowest interest personal loan Singapore’. Licensed money lenders are known to offer a good personal loan interest rate in Singapore. Some of them even offer the lowest interest personal loan in Singapore. This is possible because there’s a cap, at 4 percent, on the interest rate that a money lender can charge you.
The end-use is flexible. So basically, you can get a personal loan for any reason like travel, vacation, wedding, renovation, and so on. Many more such situations that are important to you can be covered under a personal loan. Just keep in mind that you’re borrowing for a reason that is genuine. Finally, you are the one who has to repay it. So take appropriate financial guidance from your lender. Licensed money lenders offer you great support in this area.
And the tenure is flexible too! Isn’t that just amazing? Along with the reason to borrow, there’s flexibility in the loan tenure as well. Although personal loans are mostly shorter-term loans, you can repay them at your convenience. In fact, a licensed money lender will help to prepare a repayment schedule based on your financial capacity.
Minimal documentation is required. That’s a big one, isn’t it?! Documentation is definitely one of the critical, yet confusing parts of borrowing a loan. But in the case of personal loans, you can apply online with just the bare minimum documentation, for example, a proof of identity, proof of income, and a proof of address. These can surely get you started.
Quick and convenient disbursals are another important factor. And this is especially helpful if you opt for a legal money lender. Banks usually take a longer time than money lenders. Also, the application and approval process followed by the banks is slightly more complicated. So when there’s an urgency of money, definitely go for a licensed money lender. That will pace up the overall process too.
Loan amounts are flexible. Personal loans are approved based on various factors that prove your creditworthiness to the lender. So the loan amount can vary. But even if you are not confident about the credit score you have, you can approach a money lender with a license, and they will guide you appropriately.
In short, a personal loan can help you navigate the situation better. Further, if you plan it properly and take advice from experts, then you will even be able to improve your lifestyle and financial status. So what are you thinking about? Go ahead! Plan that vacation. Or buy that expensive gear you always wanted. A personal loan awaits you!