Are you planning to apply for a personal loan in Singapore but not familiar with the process? We got you covered! We list down some of the most important factors to consider when applying for a personal loan in Singapore and other loans.
Personal Loans Application
Personal loans in Singapore are very handy for a lot of reasons. For one, they do not have a specified purpose, which means that you can use the money on any expense that you like. This sets them aside from car loans or bridging loans, which you cannot use for anything else aside from their main purpose.
For this reason, they are very enticing to individuals with existing loans like payday loans or credit card loans who are looking to decrease their monthly rates by moving their balances from one loan to another. Next, best personal loans Singapore doesn’t take any collateral, as they are a form of unsecured loan. Lastly, they are offered even to people with bad credit scores, which means that you will be able to improve or build your credit score through the use of personal loans.
Having said that, the best personal loan providers still use your credit history to determine the terms and conditions of your loan when you make a loan application.
Important things to consider before getting a loan
1. Think about your other options
There are other alternative ways of getting money aside from taking a loan. You can borrow money from your family, friends, acquaintance, or workmates. This option is great if you are looking to pay back the loan within a short period of time. You can sell gadgets or other belongings that you rarely use.
If you are not keen on paying interest rate of licensed money lender Singapore and potential late payment penalties, you can try some of these alternative options.
2. Check licenses and registrations of loan providers
Regardless of which financial institution you are looking to acquire a loan, it is best that you check their account or their registration and licenses to operate. Typically, those legal documents are posted on their website, or in their office, if they have a physical location.
3. Take advantage of online loan comparisons and calculators
After checking the max borrowable amount, interest rate and other fees, you will be able to check how much the loan will cost you through the use of a loan calculator. Be sure to take advantage of this technique. Additionally, be sure to check loan comparison websites to have the best information about different loan packages, as stated earlier in this article. Online tools are far better and efficient as compared to doing the comparison by yourself.
4. Check Required Documents
You should get information about your required income, the interest rate of loans, the minimum and maximum loanable amount, and the repayment schedule. All of them are very important when deciding on a loan.
First, the rate will determine the cost of the loan. A loan calculator will help you with computing the overall cost of any loan. Meanwhile, the maximum loanable amount will tell you if the loan is sufficient for your needs.
Lastly, the repayment plan will allow you to properly plan and integrate the payment of the loan with your finances. Once you know these three important aspects of a loan, you can use a loan comparison site such as Loan Advisor to find out the best deal for you.
5. What to do after your loan is approved?
After your loan is approved, resist any temptations you might have in buying luxurious but not necessary items. This is especially true if your loan is a personal loan that can be used anywhere. Save the money, and only use it for the purpose that you had in mind when you obtained the loan.
For further details of important things to consider before taking a loan, please refer to this page.
Where to get a loan?
You have three options when applying for a loan application. They are banks, licensed money lenders, and credit unions.
Banks are the most secure and legitimate source of loans, however, they tend to have strict requirements and qualifications before your loan application gets approved.
Licensed money lenders are less stringent when it comes to requirements. However, you have to watch out for loan sharks and predatory loans.
Lastly, credit unions offer great loan deals with low charges. However, they are only available to members of the credit union most of the time.
What are the criteria to get a loan application approved?
The eligibility and requirements depend on the loan that you are applying for. Generally speaking, for unsecured loans like personal loan, your
1) minimum salary should be SGD2,000 (for locals and permanent residents) t
2) proof of income and employment.
Please refer to the qualifications of the moneylender for complete details.
What are the Pros and Cons of getting Personal Loans?
Pros
- They are really versatile, can be used for any expense you like
- Have somewhat low rates
- Easier to qualify than banks
- A lot of choices in the form of various licensed money lenders
- Quick loan approval
- Fast release of funds once the loan is approved
Cons
- You can get trapped in a debt trap if you are not careful
- Some loan providers impose a prepayment penalty
- Origination fees
- Some loan packages have higher rates compared to others
How to find the best loan offers in Singapore?
You will be able to find the best loan offers by comparing various loan offers of different money lenders and banks. The best way to do so is by canvassing loan offers, which is most efficiently done with loan comparison websites.
For the required income or salary, documents, and other information, please see each moneylender’s eligibility and requirements section for further details. The requirements vary from the loan you are applying for and thus also need different documents.
Make sure to understand the terms and conditions before signing any documents. Dedicated staff should explain thoroughly the conditions, terms, and your overall account upon the approval of the documents.
Conclusion
If you are looking for a licensed money lender in Singapore that offers competitive interest rates of personal loan, flexible repayment schedule, we got just the right one for you.
Fortune Credit is a licensed money lender in Singapore that meets that criteria. Aside from that, Fortune Credit also offers online loan application, quick 60 minutes approvals, and outstanding customer service.
