Get The Best Personal Loan Offers in Singapore (2020)

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Get A Personal Loan With The Best Interest Rates In 2020!

At Easy Credit, we help you source for the best interest rates for personal loans in Singapore from licensed money lenders and banks. This information will help you compare personal loans against different types of interest rates.

How Do Personal Loan Interest Rates Work?

While looking for and comparing personal loans in Singapore, you may have come across different interest rates and probably wondered what they meant. Let’s look at these interest rates in-depth to help you understand better and make a wise choice.

If You Are Not Eligible for a Personal Loan – What’s Next?

Generally, banks are not strict to Singapore residents and PRs when it comes to the minimum requirements for obtaining a personal loan. But if you’re a foreigner, it may be quite challenging for you especially if your income per month is less than $3,000. Some banks may even demand that you have a higher monthly income so that you can get the loan.

If you’ve tried to apply for a loan from a bank and haven’t been successful, you can try getting a private personal loan from a licensed moneylender in Singapore. The Ministry of Law has a list of all the licensed moneylenders – only borrow from these to prevent problems in the future. They have undergone strict scrutiny to ensure they’re legitimate and they follow all the required guidelines.

Singapore moneylenders are required by the law to explain a loan’s terms and conditions in a language you understand. Therefore, be keen, listen, and read carefully to ensure you’re comfortable with the terms and conditions indicated. If there is something you don’t understand, ask the lender to explain it to you. Don’t take the loan is something is unclear, no matter how desperate you need it. If you’re not comfortable with one lender’s terms, there are others available. Shop around and compare their terms until you find a licensed moneylender who completely satisfies your needs.

Interest rates charged by moneylenders can be as high as 4% per month. Therefore, borrow the smallest amount depending on your needs and for the shortest repayment period that you can manage.

Choosing the Best Personal Loan for Your Needs

Advertised interest rate or EIR? Which one should you look at?

The effective interest rate or EIR represents all the charges you’ll incur when taking a personal loan, including the processing fees. Therefore, it offers more accurate information as compared to the advertised interest rate. However, the interest rate shouldn’t be the only factor to consider; you should take into account other factors as well.

Which monthly installments are right for you?

When taking a loan, make sure you can manage its monthly installments. However, don’t divide the loan over a long repayment period just to lower the monthly installments. While you may be keeping the monthly costs down, the total interest paid at the end of your repayment period will be very high.

Which is the right loan amount to take?

The bank is responsible for stipulating the maximum loan amount a borrower can take, and it’s usually four times a person’s monthly salary. However, don’t borrow a loan amount you can’t afford or you’ll struggle to repay – take the minimum amount possible. Since lenders charge interest as a percentage of the total amount, the lesser the amount, the lesser the interest.

How long should your loan repayment period be?

When taking a personal loan, choose the shortest loan repayment period you can manage. If you choose an unnecessarily long period, the interest will add up, and you’ll pay more in the long run. Balance between a short loan tenure and an excessively long tenure to ensure you don’t pay more, and at the same time, to ensure you won’t be under pressure.

Are there any other options apart from personal loans?

If you want to start a business or do something like a home remodelling, check to see if you qualify for a special bank loan like an SME loan or a renovation loan. Since the bank knows what you’re planning on doing with the money, they consider these loans as less risky and offer them at reduced interest rates compared to personal loans.

FAQs About Personal Loan

Personal loan is a common type of legal loan that lets consumer like you to borrow a certain amount of cash money according to your repayment ability from an authorised financial institutions like banks or licensed money lenders which require you to repay back the principle loan amount together with specified interest rate at the fixed repayment due date. The most common personal loan is unsecured loan, this type of loan does not require you to have a guarantors or any collaterals from the borrower.

Personal loans may either be secured or unsecured. Regardless of the type, you can use a personal loan to cover your immediate expenses. If you need to borrow a small amount of money between $500 and $100,000, then you may take out an unsecured personal loan without collateral required. However, for a bigger amount of cash, you should apply for a secured loan and use your property such as your house or car as collateral.

If you are in Singapore, you have the option to take out a private loan from a licensed money lender or a bank. As for the steps involved, you may visit your preferred lender to sign the application form and submit the required documents. There are several lenders, though, that gives clients the chance to send their initial application via the website. Then, applicants should head over to the lender’s office to submit the requirements. With major banks, they may offer loans to qualified individuals over the phone. By preparing and submitting all documents required, this can expedite the approval process.

No matter what medium is used for the loan application process, you need to request from the lender a copy of the contract that stipulate the loan terms and conditions. Be wary of private money lenders that do not provide an official contract, as this is a clear sign of the institution’s illegal business activities.

Although some banks may consider your submission of documents via the internet or acknowledgement over the phone as a contract, you still need to take it further by asking questions. Do not hesitate to check with a legal professional for the best way to handle this type of method when it comes to providing loan contracts to clients.

Personal loans are one of the most common types of loan in Singapore. This type of loan aims to address financial needs, like soaring medical fees or unpaid taxes. This contributes to the greatest number of influx of clients among loan sharks and lending corporations.

You may have heard of a loan with collateral, which means that the borrower has to set something valuable as guarantee to the lender in case that the borrower is not able to pay the money at the designated time. A borrower can choose to use his car or house as collateral if he is loaning for a big amount of money.

This is what we call secured personal loan because the lender already has the assurance that his investment will be returned. But personal loans can also be secured with the help of a guarantor, someone who shares the responsibility of the borrower in paying the debt, especially when the borrower can no longer pay the loan.

Most licensed money lenders offer unsecured personal loan where there is no need for guarantors or collaterals from the borrower. This is good news on the part of the borrower; however, this doesn’t mean that the borrower is already free from responsibilities. Although he doesn’t have to use collaterals, he has to submit certain requirements and follow legal procedures to get the money. Some of the requirements include documents certifying that the client has the ability to repay the loan.

Loaning may sound so simple but this entails a heavy responsibility, not only on the part of the borrower, but also on the part of the lender. The borrower should always keep in mind that he should borrow for what he needs and not for any unnecessary things. He should know his limit and borrow money according to his ability to pay it. If loaning gets out of control, this can lead to more problems that would be more difficult to resolve in the future. At EasyCredit, you can count on us to find the best loan Singapore lenders offer for you.

If you wish to take advantage of lower interest rates for your credit card debt payments, then it is worth considering debt consolidation. This means that you can borrow money from a bank to consolidate all your credit card debts.

Some people also take out personal loans to settle any unexpected expense that come their way whether it is for their child’s education, home repair, or other types of financial concerns. In case you are looking to spend a luxurious holiday or to have the wedding of your dreams, the most practical thing to do is to save up until there’s enough cash for these events. While it’s easy to borrow money, the last thing you want is to get buried in debt. You can also read about how to Stop Yourself From Drowning In Debt.

Whenever financial issues come along, you can always have the assurance that borrowing money is among the options available. As with any decision you make, it is important that you do your homework and weigh your options before taking a plunge. Moreover, personal loans come with fees, charges, and repayment terms that you need to know prior to affixing your signature on the dotted line.

Once you have come to the conclusion that a personal loan works for your needs, make it a point to consider the repayment scheme provided by the money lender or financial institution. It’s always possible to visit websites of lenders and use the online loan calculator to check the potential fees involved. Think things through and never take out a loan on impulse.

As long as you have a consistently good credit rating, you can go directly to a bank or a licensed money lender for your personal loan application. Keep in mind that banks have a higher standard for borrowers in terms of their annual income. On the other hand, licensed lending institutions have a more relaxed rule with the income brackets they provide. The most important thing is that you qualify for their requirements.

Before you apply for a loan, be sure to check the reputation and legality of the company’s operations. You should only trust money lenders that are registered with the Ministry of Law (MINLAW) or the Monetary Authority of Singapore (MAS).

As long as you qualify for the lending institution’s eligibility requirements, then you may apply for a personal loan. Borrowers should be employed, with a proof of income, and are not below 21 or over 65 years of age. Applications remain subject to the lender’s approval, and banks generally have stricter standards for their loan approval system.

Banks commonly offer personal loans strictly to Singapore citizens and permanent residents only. As for licensed money lenders, they also accept foreigners or individuals with a valid work pass in Singapore, as long as they have a full-time job in the country.

If you earn over $30,000 in a year, you can borrow as much as four times your monthly income from a licensed lender. However, if your annual income falls between $20,000 and $30,000, you may only borrow up to twice the amount of your monthly salary. There is no limit to the amount that you may borrow if you make more than $120,000 annually.

With banks, you may borrow up to 4 times what you make monthly, as long as your annual income is $20,000 or more. For clients who have an annual income of $120,000 or more, they may loan up to 10 times what they make in a month.

However, you should remember that these guidelines set by licensed lenders and banks still depend on various factors including your outstanding debts and credit rating.

There are two important aspects that financial institutions consider before approving a loan application. These include the applicant’s personal credit rating and the amount of money to be borrowed. Initially, lenders and banks will review your income and credit rating to determine the borrower’s ability to repay the loan. Fast approval is usually guaranteed if you have submitted all the required paperwork and after you have proven to the lender that your credit rating is good.

Some clients have their loan application denied because of a poor credit history. The same applies to those do not have any credit history since banks do not have the means to determine clients’ capability to repay the loan. Other factors that can cause banks to deny your application include a lower salary (does not meet the income bracket) and the existence of several unpaid loans.

It is also worth noting that banks make sure that your repayments do not go beyond 60 percent of your net income. However, the good news is that banks have several ways of determining a client’s credit-worthiness. If one bank has denied your application, this does not mean that you will experience the same fate with other banks.

In case a bank refuses to grant you a loan, you have another chance to borrow money from a licensed moneylender. Remember that your application remains subject to the institution’s approval, and your ability to repay the loan will be evaluated based on your credit rating.

Usually during the loan application, licensed moneylenders will do a search on the Credit Association Singapore (CAS) web portal to check borrower credit report provided by Moneylenders Credit Bureau. Read more about Did Your Credit Card Application Get Rejected?

Nearly all banks in Singapore offer personal loans to qualified individuals, and you can check out the details on their website. If a bank denies your loan application, you have an option to check your qualifications with a private and legal lending institution. Be sure to conduct research and compare rates offered by several lenders to get the best deal.

Banks and lenders offer varied interest rates, so it is best to check their websites to obtain the information you need. You should also ask if the rates provided are variable or fixed since there are significant differences between these two. With a fixed rate, the interest rate remains the same throughout the duration of the loan. On the other hand, a variable rate depends on the percentage rate fluctuations per year. This means that the rate may either go low or very high later.

If you have late payments for your loan, then you run the risk of paying personal loan rates on top of the principal amount borrowed. Personal loan rates from banks are between 4 and 10 percent, and these are determined on an annual basis. The rates may also vary from time to time and depending on the lending institution because of the difference in the rate they offer. Generally, the maximum interest rate from a licensed lender does not go above 4 percent a month.

Perhaps you have been wanting to purchase a piece of furniture or device that’s been on your mind for quite a while, yet you have no dispensable cash for such item. If this is the case, then you may consider taking out a personal loan after doing your homework. Banks tend to have a stricter approval process, so you will need to submit all required documents to ensure a quicker response time.

Before you decide to take out a loan, evaluate your ability to repay the amount you will borrow. Never apply for a loan if you are certain that you cannot pay it back since you will only find yourself in deep waters.

Some people consider refinancing their personal loan, and this allows them to save more money by choosing the right institution. This is why you need to do research on what it takes to have your loan refinanced. In most instances, it is a smart move to refinance if there is an institution that offers a lower fee or minimal interest rates.

Once you have taken out a new loan, make it a point to review the repayment fees and ongoing charges involved. A repayment calculator can help you make the best decision when comparing your loan options.

It may be practical to refinance your loan if you are certain that you can save more money over time or once the interest rates have dropped. A loan repayment calculator can give you an estimate of the potential savings you can get, but be sure to provide important details such as the refinancing option and loan information. Then, you can determine each loan’s total cost, as well as your potential savings.

Online loan application may be possible for new loans that you wish to take out from an institution. In the case of refinancing your loan using the same institution, your funds available from the new contract may be used to close the previous loan. However, if you choose a different institution, they will have to wire the funds for closing the loan to the original lender. Do not forget to request for the account documents from the original loan and keep this paperwork as proof of the full payment of your loan.

Whenever you need emergency funds for your immediate expenses, a personal loans is a viable option for your situation. But if you live beyond your means, you will only find yourself into a serious financial problem by taking out more loans than you can repay. You should also take the time to check if you can still sustain your lifestyle even while paying out the loan. This is very important to avoid getting into a debt trap that you will only regret.

There are three factors that influence your credit score such as your payment history, your total debts, and the recently opened credit lines. If you take out a new loan, another credit line will be opened, along with the risk of increasing your debts.

Your credit history also impacts your chances of having a loan application approved. Those who make timely payments do not have to worry too much about their credit score. This is why you should exert an effort to settle your debts according to schedule to maintain a good credit rating.

Due to the standard lending guidelines provided by banks, it may be tougher for individuals with poor credit to obtain a loan. Licensed lenders, on the other hand, offer more lenient rules for those who wish to borrow money.

The amount you may borrow depends on the type of loan (secured or unsecured) and your existing credit score. If you take out a secured loan, you should pay off your loan to avoid having the collateral seized by the institution.

Since a loan is a long-term commitment, it helps to consider obtaining a personal loan insurance that gives you an assurance of the full repayment of the borrowed amount in unfortunate situations. This can protect you and your loved ones in the event of the borrower’s disability, involuntary unemployment, or death. As with all types of insurance, there are conditions and exclusions for a personal loan insurance. Moreover, you can only get a personal loan insurance from a bank.

There are varied personal loan calculators offered by different lending institutions, which you can use as reference in determining the amount you need to pay monthly. Important details may be required before you can use the loan calculator including the principal or loaned amount, interest rate, and term. Banks provide a loan payment calculator that supplies the interest rate corresponding to the loan amount and term.

How are Personal Loans Calculated?

A loan calculator computes the amount payable per month for a particular term and the Effective Interest Rate (EIR). There are three factors that impact the payable amount per month such as the amount to be borrowed, duration of the term you prefer, and the interest rated. Simply change either the specified duration of the payment or the loan amount to make adjustments on the equated monthly installment.

With a fixed personal loan, borrowers are required to make monthly repayment. However, in the case of a flexible term, it is important for borrowers to repay the minimum amount indicated in the offer letter. Once payment is not settled within the agreed time frame, there is a late payment penalty charged. The penalty fee varies from one bank to another. Other charges included for some loan contracts include insurance and processing fees.

Make it a point to read and understand the fine print before you sign the contract or take out a loan.

It is not all the time that our cash on hand or our savings are enough to provide for all our needs, and sometimes, even for our little luxuries. As sad as it may seem, this is the truth that we’re trying to deny. To save us from our misery, there are people who are willing to lend us some money to make both ends meet. Thanks to them, and we get to survive for the day. But this simple reality is now becoming an industry. Different institutions, private and public alike, have come up with solutions to our momentary difficulties, which we call loans.

Getting lowest interest rate personal loan in Singapore has never been easier, more affordable, and more flexible! With the number of banks and licensed money lenders offering varied loan choices, money lenders that offer competitive payment schemes and public sectors that are now offering good personal loan packages, Singaporeans can now get loans that are appropriate for their needs. The industry of loan in Singapore has been addressing not only personal needs, but also those of businesses, housing and education. Although there are other types of loans being offered, we are going to focus on personal loans here.

Notes to Borrowers in Singapore

It is essential to first determine the interest rates offered by the licensed moneylender before you make a final decision of taking out a personal loan. Thus, it helps if you begin by comparing rates and guidelines that can help you determine if the terms offered will meet your current financial situation.

Prior to signing the agreement, check if there are hidden fees, clauses or other details you need to know. Choose money lenders that offer affordable interest rates and reasonable repayment schedules. If there is anything unclear in the contract, simply clarify these details with your lender before signing up your loan application form.

Most importantly, be sure that you understand completely the details presented in the contract before you sign anything with money lenders. The draft given to you by the moneylender should be written in a language that you can understand. If you need assistance, you may also want to consult a lawyer who can help explain the details to you. Blindly signing any contract will only put you in deep trouble eventually. So, if there are doubtful items stipulated in the contract, you can always walk away and look for a better lender. After all, it is ultimately your choice whether to take out a loan from a particular lender or find another one that meets your concerns.