If you are looking to take out a low-interest personal loan today, what is the first thing that comes to mind? For many household owners, they first will start considering the right moneylender to work with. But, this is a trap for most borrowers every now and then. 

It’s time you get to know how to free yourself from the trap. Firstly, Singapore has an array of reliable lenders and never have a shortage of choices.

For most borrowers, the challenge they have in getting financing is in their approach. And most, borrowers don’t really appreciate the application process and the rigours of eligibility for a loan. What can you do to ensure that you get the application right?

How to get it Right in your Application

For you to have your application approved, you should know how to go about the entire application process. Below is a look at some factors that will help you get the needed financing hassle-free:

Assess your current financial situation:

When you happen to have a poor score and you are having a hard time with more loans, then you should look for any moneylender who may not carefully question your financial health. Many moneylenders only focus on a regular income flow. But a bank will need to look at your school report. Even then, consider dealing with a licensed moneylender.

Understand your income:

Why is understanding your inflow of funds important as you plan to get a loan? Before starting to search for funding options, consider your current present since it helps in determining the amount of loan money you can get. When you choose to get more loans, then it is best that you be ready to get much less funding.

Inquiry for eligibility:

As you consider making an inquiry, it’s time to have the NRIC card ready, for salaried individuals some computerized payslips, utility bills as residency proof, or past CPF statements

When you are self-employed, you should present your income tax statements for the past 2 years. Foreigners will need a tenancy agreement, valid employment pass, banks statements, and appointment letter.

  • These eligibility conditions will differ from one moneylender to the next when looking at the terms of how many documents are required. But, the one mentioned above are the primary types of documents required.
  • Once you get all the necessary documents, be prepared for the real search. You need to have access to the internet when you would like a quick loan. In Singapore, low-interest personal loan deals can be found online so be ready to make comparisons of many moneylenders.

In other words, you need to be proactive to help you find the best loan deal available. This task will require your entire attention, but the goal is your getting financial independence.

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How to get the best personal loan

Before you can take out a personal loan, you should consider your situation and needs. Remember that, every time you request for a loan, this request is recorded on your credit file.

 Meaning that it’s very essential that you select the best loan to help you avoid having to submit multiple applications. How can you determine the right loan type for you? Here are some questions you need to ask yourself:

What is the purpose of the loan money?

In answering this question you will specify your options. There are loans designed for specific uses like a car loan, yet other loans are more open. What amount do you need to borrow? 

Based on the amount to borrow, it’s easy to notice that your options get more restricted. Look at individual loan offers and confirm the maximum and minimum loan amounts being offered.

What repayments terms can you afford?

As you compare different loan options, you need to ensure that the repayment amount is affordable for you. Look through the repayment deals offered on the loan and confirm if the rate is variable or fixed. 

Then take a look at the amount you are planning on borrowing and the rate offered and see whether the repayments are manageable based on your budget.

Do you hold a good credit record?

Remember that your credit record will affect the choice of loan product you can apply for. If your credit file has negative marks, a lender could consider approving a personal loan only when it is secured. 

If your file has defaults or some negative listings, then you may need to consider getting a best payday loan in Singapore. This is because several payday lenders can approve these loan with a poor credit.

man asking HDB or Bank Loan

You have sent in a request. Now what?

Once you have submitted your application, you could be eager to know if it has been approved, and when you have, the amount that you can get. Also, based on the type of loan you are applying for, the approval time will differ. 

For more conventional loans, like the trusted personal loan, your moneylender might take several weeks or some days to authorize your loan application.

When it comes to payday loans or smaller-sized loans, the approval time tends to be much quicker. There are payday lenders who give their approval in 60 seconds, while other lenders and banks will give small loans amounts of below SG$2,000 in a faster time frame. 

However, before applying for a loan, ensure you confirm with your moneylender on the typical approval time.

Is the approval time important for you? Consider if the approval time will work for you, especially when you need money for an emergency. 

But it is best you openly talk to your licensed money lender on the purpose of the loan you are getting, this way you can get the best service possible.

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In closing

As you request for personal loans, it helps to know the process that way you can apply correctly. Note that your credit file will contain all your past requests and will impact your credit report. 

Therefore, you need to look at options available and do thorough research to ensure you’re getting a suitable loan. Since loans are a serious undertaking, you need to consider them as such as you apply.