The Different Kinds Of Personal Loans In Singapore
When you do not have the money to pay for something that is relatively expensive, your answer may be a personal loan in Singapore. Personal loans work like any other loans, you borrow money from a licensed moneylender, and pay it back over a fixed term. In order for the licensed moneylender to make money, interest is charged on the loan.
A personal loan in Singapore can be used to by many things such as home furniture, appliances, house repairs, even a holiday. However, there are a number factors when it comes to personal loans, and these are listed below.
Most secured loan uses the equity of your home to back it up. This means that if you fail to pay, your private property may be at risk. However, it also means that you can usually borrow more money, for longer periods of time, at a lower rate of interest. The longer you take to pay off the loan, the more it costs you. For people who have stable employment, and own their own home, a secured loan is an excellent option to obtain money.
Unsecured Personal Loan
An unsecured personal loan is for people who do not have any equity to back it up. The interest rate for such loan is can be higher than normal. This means that the longer you take to pay off the loan, you will be paying far more than someone who has a secured loan. As with the secured loan, you can spend the money on whatever you want.
Taking out a personal loan in Singapore is an easy process, and they are far more cost effective than other types of loan such as “payday loans”. Before taking out a personal loan, it is best to make sure that you are happy with the interest rates, and the monthly repayment amounts, and ensure that it will not put you under any financial stress. If you are not sure about your future, then it is best not to take out any sort of loan. Feel free to drop by our office for an obligation free discussion on the loan options available to you.
Secured and unsecured loans can be great for those who are financially stable, and need to get their hands on a decent amount of money, in a short amount of time. Most personal loans are approved within a day, and the money is usually available on the same day. Call us now at 6445 9166 to find out more!