For almost all of us, there come situations in life where we need to apply for a personal loan. Whether it is purchasing that family home, or sending your kids to that overseas college of their choice – the truth is there will come many situations that will require you to look at banks to provide you with a personal loan to make your life easier. However, at the time of applying for a personal loan, there are a few things that first come to your mind and these are – which is the best personal loan in Singapore and which is an easy personal loan to apply for?
Let’s face it, applying for a personal loan can be a daunting process for many, especially if you haven’t applied for one before. Here we give you a detailed breakdown of everything you may need to know when applying for a personal loan in Singapore.
But first things first – before you embark on a journey to find the best personal loan in Singapore you need to know your basics.
What is a personal loan?
A personal loan is an amount of money that you can borrow from a bank or from a licensed money lender. Why it is termed a loan is because of the obvious reasons – you have to return the amount within a fixed span of time in instalments.
Important things to consider while applying for a personal loan in Singapore
Interest Rate: This remains the number one concern for anyone who needs a personal loan. A good interest rate is singularly important because it ultimately decides the total cost that we will be paying for the loan.
Typically for bigger investments, one may need loans for a longer period of time hence the cost may go up so it’s important to identify the best personal loan in Singapore. Remember in Singapore, your interest rate should never exceed more than 4% per month. Some of the best banks and licensed money lenders give you much better rates ranging from between 1-2% making it an easy personal loan to repay.
What are the components of a personal loan in Singapore?
When you apply for a loan the total cost that you incur would include – the principal amount that you need to borrow for your necessity, the interest amount that will be included in the amount, and the administrative amount that will be calculated during the process.
Another important thing to consider from before is the late payment fee charges.
While you may have all the intentions to repay the loan in the stipulated time frame, you must consider unforeseen circumstances and what if you are caught in such a situation. The late payment fee for a personal loan in Singapore should not exceed more than 4% of the late interest per month. These are the important points that make a loan the best personal loan in Singapore.
Are you eligible?
When you are intending to apply for a loan, you must also do a quick recce of your eligibility for the loan. In Singapore, to apply for a loan you must be at least 21 years of age. The other point to consider is your annual income. Almost all banks would require you to have a steady income.
Most banks in Singapore require that you have at least an annual income for Singaporean $30,000 per year to apply for a loan. If you fall in a category where your annual income is lesser you may want to consider going to a licensed money lender which may have slightly more flexible requirements.
How to know if you are getting the best personal loan in Singapore?
In Singapore, the entire loan process should not be very time-consuming. The best personal loan is the one that is also an easy personal loan. The process from a good bank in Singapore should be seamless, informative, and without any unnecessary terms and conditions.
The important information should be shared with you at the onset and must answer all the important points that can affect how much amount will you pay in the long run apart from the principal amount that you were set to borrow.