Singapore is a major business hub, and one thing known is that a monthly salary is never enough to keep the residents going on and meet their short- or long-term obligations. Financial providers have made it easy to access personal loans so long as one meets the eligibility. You stand to access attractive personal loan options .
Some characteristics that make personal loans attractive include low-interest rates compared to getting credit card loans, and they do not require collateral or guarantors when making the applications. The loan application process is straightforward. Financial organizations such as banks, credit unions, licensed moneylenders, and many other legible lenders in Singapore offer these loans.
Among the best organizations to deal with are licensed moneylenders. They have friendly terms, and as long as you meet their eligibility criteria, the personal loan can be approved in as little as eight minutes uponsubmitting your loan application documents. However, it is important to note that the loan application process varies from one organization to another.
Top Consideration When Getting a Personal Loan
- Work with a Credible Financial Organization
Many borrowers fall prey to making loan applications toorganizations that are not licensed to operate in Singapore, and they end up being scammed of their hard-earned money. Always be aware of the loan sharks by confirming that the lender is registered under the Monetary Association in Singapore.
- Confirm that you have all the Required Documents
When making an application, get a personal loan checklist and consolidate the documents to fasten the process. This will also help you decide if you require another additional loan and if you can repay the installments in good time.
For a smooth application process, you will be required to submit documents such as
- Your Payslip for the last three months
- Notice of Assessment
- Proof of residence.
You must submit your passport and Authority to Work in Singapore documents if you are a foreigner.
- Confirm your Credit Score
Most personal loans check if you have a good credit report before approving the loan. Note that the better the credit report, the lower the interest rate. Therefore, if you are anticipating getting a personal loan, always maintain a good credit report.
- Borrow an Amount that you need and Purpose to Repay in a Short period
If a small loan can meet your financial Purpose, do not apply for a higher loan just because you qualify. And once it has been approved, endeavor to repay it quickly and reduce the interest payable.
- Confirm About the Other Charges
Apart from the interest rates, always confirm the other charges, such as the processing fees, early repayment fees, late repayment fees, and the cost of restructuring if need be,
- Use a Loan Calculator
A loan calculator will help you know how you will make your repayments even as the credit officers work on their side.
What Can You Use the Personal Loan for?
There are various uses for which one can utilize a personal loan. These include;
- Debt Consolidation
- Supporting home repairs and renovations
- Financing Large Purchases like buying furniture,
- Vehicle repairs
- Medical bills, among others.
How to Apply for A Personal Loan and Get in Minutes
Even with bad credit, getting a personal loan in Singapore is not as difficult as one might think. And especially with the emerging technologies, you can apply for a personal loan at Online Credit PTE Ltd, a licensed moneylender, and get it fast and stress-free.
Login to the Online credit site and read more on how to apply and get your loan approved quickly, ably, and easily.
Merits and Demerits of Getting a Personal Loan in Singapore
Getting a personal loan in Singapore is not the perfect solution as it carries with itself a number of issues that a borrower should address carefully.
If you fail to make payments in good time, you could face late repayment fines, or the lenders can still increase your interest charges. If we critically look at the trend that took place in 2022, based on the OCBC Financial Wellness Index 2022, it emerged that;
- Singaporeans had unsecured debt in 2022, which was a 7% increase compared to 2021.
- 19% of the portfolio holders had challenges in repaying the loans
- 35% of them did not have an idea of how to repay the loans.
All these challenges translate to increased penalties and interest charges
- There is a Minimum loan Requirement
Lenders check a defined level of income before approving a personal loan. In such a case, you may not be eligible for the loan if you do not have a stable monthly salary.
- Ease Access to Funds
If we check on the positive side of it, one can get money to meet their obligations if they qualify for it in an easy and fast procedure and make important strides. For instance, a personal loan will come in handy when paying for an emergency medical bill.
One can get ten times the monthly income if one decides to apply with Singapore banks. On the same note, Licensed Moneylenders can offer as much as six times the borrower’s monthly income, which will be deposited directly into your account.
Where Can You Apply for a Personal Loan Conveniently?
Various Lenders in Singapore offer personal loan options. Some of them are
- Licensed Moneylenders
- Credit Unions
- Peer to Peer Platforms
When choosing the right lender to work with, some of the considerations that one ought to make include;
- Confirming the loan amount
- The period of repayment
- The interest rate
Before making a loan application in Singapore, a borrower needs to consider several things. This will help them make it easy to have a personal loan in their portfolio. For instance, deciding to borrow from banks can be a good option because they offer competitive interest rates and long repayment periods to help one in managing their monthly repayments.
However, working with a licensed moneylender can also be a good decision if you need the money quickly and are ready to repay the loan quickly.