A personal loan can be a great way to get the money you need to finance the renovations of your home, the purchase of a new car or motorcycle, and why not, even the vacation you’ve been planning for a while.
Whether you are interested in applying for a loan from a bank or credit company in Singapore, the approach process is very similar. However, obtaining a loan in an intelligent way requires, on the part of the interested party, an extra dose of research and awareness to ensure that you choose the best service that the market offers.
This financial tool will provide you with support when you need it, but you must make sure you use this financing correctly so that you do not have problems, So Here are the 5 tips to get the best personal loan for you?
Here they are, in order:
1. “Do the math”
It may seem trivial but the last thing you or the institutions want is to make a loan request without the knowledge of being able to repay it. In this regard, it is a good idea to “do the math” to make sure you can repay the debt.
Like? We tell you right away.
Start by determining the amount of money you need, bearing in mind that some lenders charge an origination fee, which they deduct from the loan proceeds. Make sure you request an amount that allows you to meet your needs (but without overdoing it): ask for a maximum of 30% more but make sure that your evaluation is sustainable over time!
To help you choose, our first tip is to use a loan calculator to find out what the monthly repayment installment will be. Online Credit configurator, for example, allows you to set the amount you want to receive and the number of installments to be repaid, in order to know the repayment conditions BEFORE and in an informed manner. You can play a little with the numbers to get an idea of how much the loan will cost you and decide if the budget you have set for yourself is in line with all the management costs.
2. Check your paycheck
Most financial companies will ask you to prove your income to determine if you are able to repay the loan. As we said above, it is not protection only for those who provide the loan but above all for those who receive the loan and could find themselves in the unpleasant condition of no longer being able to cope with the commitment made.
The loan application assumes that the applicant has at least an adequate income, and certainly an adequate income will give you the best chance of obtaining access to financing. You can check for free that your income is within the required “measure” here, by answering the questions of our operator.
If your income is not within the required parameters, rest assured: all is not lost. We explain why in the next point!
3. Consider the different options
Depending on your credit situation, you may or may not need a guarantor to get the loan approved. By guarantor, we mean a person, natural or legal, who undertakes to take over from the debtor and to fulfill in his place in the event that the original debtor has not carried out his obligation. The presence of a guarantor increases the chances of having your request accepted. In fact, the guarantor represents extra security for the bank which, in this way, ensures the repayment of the installments in the manner and within the times established in the loan agreement.
You will also need to think about which subject to contact to obtain a loan. For example, you may have a hard time getting approved if you are already flagged as a bad payer. Some finance companies, however, specialize in working by offering “minor” loans that are easier to obtain and serve as a cheaper alternative to classic personal loans.
4. Don’t stop at the first “offer”, consider something else as well
One of the worst things you can do when looking for a loan is to settle for the first offer, simply because it’s not always the best. Take some time and shop around, evaluate the best possible interest rate and compare the different types of loans to get an idea of what is more in line with what you are looking for.
You may need a loan of up to S$2,000 and then the best option could be a legal money lender which has decent fees, ZERO fees for managing installments, and ZERO commissions for refueling and motorway tolls.
5. Choose a lender and read ALL terms and conditions
After having made the necessary checks, our last advice is to choose the service with the best offer for your needs.
Depending on the type of product chosen, you may be able to apply for the loan directly online, as happens in an agile and safe way.
Each bank, credit institution, or finance company is different in the information they will ask you for but, in general, you need to provide your name, address and contact information, income, and employment information.
You will also have the opportunity to view the terms and conditions for the loan, including the fees and repayment period.
Read carefully to avoid hidden costs and other pitfalls and pay close attention to so-called ancillary costs, which are some expenses that are not strictly related to the repayment of the principal or the payment of interest.
If you have read this far, now you are really ready to get the best loan for yourself.