Borrowing money is among the many options available to an individual when they need a personal loan. Before you decide to get a personal loan be sure that you have thoroughly done your homework. Also be very clear that a personal loan is the best choice for your financial needs. You then need to review the choices open for you and decide on the one that will best work for you.
Of importance is that you understand the charges and fees the loan would attract. And also take note of the repayment schedules and conditions. You can also ask for the loan that has an early repayment option.
Even then, in Singapore, you will find numerous different loan types and also different schemes tagged onto each type of loan. This will on many occasions confuse borrowers when they are looking for the best type of loan that they can take. Even then, it is advisable that you make your inquiries to ensure that you understand what each loan terms are. This way you will be able to make informed choices to ensure you get a loan that fits your financial needs.
Below are ways in which you can have access to a low interest for your personal loan.
Personal Loans Demystified
A personal loan may well be the best possible loan type for you to get when in need of emergency cash. The fast cash advances and loan services offered by most licensed moneylenders will allow you to have peace of mind. This for a borrower means less stress.
The loan repayments are often times worked out mostly based on your income as well as other factors. Hence it is still possible for you to get low interest charged on the personal loans you will be taking. Since most personal loans are unsecured. Thus potential borrowers in Singapore do not require to present any type of collateral and mortgages when taking this type of loan.
Factors Of Low-Interest Loan And Eligibility
One of the major factors that moneylenders use to determine your loan eligibility largely is on a borrowers’ income level. Also, lenders look at the borrower’s source of income. The more a potential borrower earns, then the higher the amount of loan a borrower will be getting. This major factor also plays a role in determining the increased chance of your loan being approved. This also means you may get low-interest rates on your personal loan. This practice is commonly done by both licensed moneylenders and banks as well.
Another common practice that licensed moneylenders and most banks do is to allow borrowers to take up to 4x of their monthly salary. In addition, when you are able to prove that you are able to make your loan repayments on time, your personal loan agreement may be worked out to be a better deal for you. This will mean that the terms and conditions of the personal loan will work best for you.
When the Loan Offer Is Too Good
The adjustment of the Moneylender’s Act in 2010 has in recent years led to many money lending firms opening up in the neighbourhood and the suburbs. They are also able to offer a range of loan services to the Singaporeans.
On the other hand, it has been noted that there is also an increase in the number of moneylenders with bad practices. And the coming up of many new and unlicensed moneylenders who at times pretend to licensed moneylenders to lure potential borrowers.
These wayward lenders often target on borrowers who are in urgent need of cash hence getting themselves into endless bad loan debts.
Normally, wayward lenders will often offer very low-interest rates to the borrowers but then implement fees and give difficult terms of repayment that the borrower isn’t able to match up.
Compare Different Loans Before You Borrow
Make sure to always compare the different loans offered by different money lenders in the market. This the simplest rule of any consumer. There are various personal loan interests offered by different financial institutions, therefore, ensure you make comparisons. And then choose from amongst those the one with lowest interest rates. Find out the loan offerings available for you as a borrower, and consider the debt servicing ratio you have. This is a sum of your debt – the monthly repayments on all your bills- compared to your total earnings.
This calculation technique will let you check if you could incur more debt. And also whether you can meet the monthly repayment on personal loans you hold. Most importantly, be sure to check that the debt servicing ratio doesn’t go above 50% of a total of your earnings. Otherwise, lenders and banks may not let you borrow the loans or offer you the higher interest rate.
Deal With The Right Moneylender For Low-Interest Rate For Your Loan
Once you fully consider your amount of debt and your monthly repayments you are able to manage, plus the outstanding debts you owe for each month, you can then finalize on your decision of dealing with the right certified moneylender.
- Deal with the moneylender who offers you the lowest interest rates on the personal loan.
- Ensure you deal with a reliable moneylender and is honest with you. Your loan officer is to advise you on the interest rate, loan amount, and the repayment schedule and amount.
- Ensure that the moneylender can be trusted and licensed. Most licensed lenders will calculate your repayment package that best suits your current needs.
- Deal with a moneylender who has good reviews. Also, take your time in comparing the loan interests between different lending companies.
- One thing to bear in mind is that you ensure to meet your repayments on time.
- When you consider time flexibility, be sure to choose a moneylender who can offer you this for your personal loan.
- Look out and be sure to read the loan terms. Ensure that you have Read the moneylender loan contract terms. Also, ensure you understand what you will be signing.
Read up on our list of approved legal moneylenders so you are better prepared in picking the right service to suit your financial needs.