Introduction
A personal loan can be a good option if you need to borrow money for a personal emergency. But before applying for one, there are some things you should know.
To help you weigh your options and better understand how personal loans work in Singapore, we’ve put together a list of FAQs.
What is a personal loan?
Personal loans are a type of unsecured loan that you can take out to pay for personal expenses. These include debt consolidation and home repairs, as well as medical bills or other costs that arise unexpectedly.
If you’re looking for quick cash to finance something personal, applying for a personal loan could be the answer—and it’s easy.
All you have to do is fill out an application form and submit it online or over the phone. Your information will be sent directly from your lender to our company at no cost to you, who will then evaluate it on behalf of the lender.
If approved by both parties, we’ll deposit money into your bank account within 24 hours so that you can get started immediately with whatever project got delayed due to lack of funds.
Why should I get a personal loan?
A personal loan is the best way to go if you need to borrow money. You can use your loan to pay for anything you need or want.
If you urgently need some cash, getting a personal loan is one of the fastest ways to earn money within 24 hours.
You may be wondering why I should get a personal loan. Many benefits come with it:
- Personal loans provide financial flexibility and access to funds without sacrificing equity in your home or vehicle.
- A good credit history enables borrowers like yourself who take out unsecured loans (those without collateral) to qualify for lower interest rates on their debt.
- They offer greater flexibility than other forms of financing because they have no fixed repayment schedule; this means more control over how much principal gets paid back each month.
- If needed, you can make interest-only payments, paying only what you owe until all balances are cleared in full at maturity.
How much can I borrow for a personal loan?
You can borrow as much money as you want for a personal loan. It’s up to the bank to decide how much you can get, and that number is based on your income, credit history and other factors.
If you have very good credit and make an excellent salary, your bank may give you more money than someone who has bad credit or makes less money.
However, most people can borrow between $5,000 and $50,000 for personal loans.
What are the types of personal loans in Singapore?
Personal loans in Singapore can be structured in different ways, and they can be for a particular purpose, such as buying a car or paying for a wedding.
Alternatively, they may be flexible and open-ended. The loan amount could also be fixed or variable, depending on the borrower’s needs and preferences.
Personal loans are usually granted for 12 months at most, but there are some exceptions where you can get up to 5 years of financing at one go.
How do I apply for a personal loan in Singapore?
You must complete a few steps to secure a personal loan in Singapore.
First, you can apply online or in person at your bank’s office. Second, if applicable, you must provide proof of income and personal details such as your identity card number (IC), passport number, and driver’s license number.
Third, you must provide a credit check via e-KYC (e-Know Your Customer). This step is required for all banks in Singapore, except for DBS and OCBC Bank, which do not require an e-KYC process.
Fourth, most lenders require that the applicant signs a contract before agreeing on the terms of their loan agreement. Some lenders may also request that applicants provide a guarantor who can take over payments if they default on them due to non-payment or other reasons like unemployment or disability.
Can I make early repayments on my loan in Singapore?
The answer is yes. You can make early repayments on your loan in Singapore.
To do so, go to the “My Loan” section of your iBanking account and click on “Make an Early Repayment.”
You must enter the amount you wish to pay off and click on submit.
What do I need to watch out for with a personal loan?
The first step to getting a personal loan is to ensure you’re aware of your credit profile. This means checking your credit score and reviewing your financial history.
If you have any late payments or outstanding debts, these can affect whether or not the bank will approve your application.
Once you know where you stand concerning your creditworthiness, it’s time to shop around for a personal loan.
Once again: make sure that the terms and conditions are right for you and that there aren’t any hidden fees or penalties associated with what looks like an attractive offer at first glance.
Conclusion
For several reasons, personal loans are a great way to get the cash you need. Whether buying that new car or paying off credit card debt, the right loan can help you feel more secure in your finances.
Hopefully, this article has given some insight into what types of loans are available and how they work so that you know what to look out for when you look for one.