5 Things Singaporeans Should Know About Personal Loans
What is a Personal Loan?
A Personal loan Singapore is an amount of money that you can borrow to use for a variety of purposes. For instance, you may use a personal loan for an emergency, to consolidate loans, for school fees, renovation, dream wedding, and so forth.
It can be offered by banks, Singapore licensed moneylenders or credit unions. The money borrowed is expected to be paid overtime with interest on top. It also attracts loan application fees.
Below is what you need to know about a personal loan:
In Singapore, many banks and lenders offer personal loans but the requirements may vary. Here are some of the basic eligibility criteria that you will need to meet when applying for a Personal loan Singapore.
- Age of the Applicant – Any borrower should have attained the age of 21 years, although some lenders offer up to the age of 18 years and do not lend to individuals who are above the age of 60.
- Annual Income – Most lenders require Singaporeans or permanent residents to have an annual income of $20,000 and $40,000 for foreigners with valid credentials.
- Residence Status – Most lenders in Singapore offer personal loans to citizens, permanent residents and foreigners with valid credentials. However, there are some lenders who only give loans to citizens and permanent residents.
- Employment Status – Personal loans Singapore is offered to anybody with consistent income. The income can either be your salary or from the business.
Types of Personal Loan
There are two types of personal loans Singapore namely; term loan and revolving loan.
Term Loan – Term loan comes with a set period of time or a fixed period as well as established monthly installment. The interest rate for the term loan is usually higher than that of a revolving loan but a small percentage is usually charged for processing fees
A Revolving Loan – It is also referred to as the personal line of credit. Just like a credit card, you can use it anytime, anywhere up to your credit limit. You are only required to pay a minimum of 2.5% of the amount utilized each month. Because of its revolving nature and flexibility, the interest rates are usually higher.
A revolving loan does not have a fixed loan period, it is always available as long as you have regulalized the amount utilized. Once you pay the amount utilized, the limit becomes available again for you to utilize.
Term loan can extend from 1 year 7 years. The longer the term the lower the monthly payment but this comes with a high-interest rate.
How to Increase Eligibility
Having a good credit score will help increase your chances of receiving a personal loan. Also, having a steady income increases your chances of accessing a personal loan from the bank or Singapore licensed moneylenders.
If you are looking for a personal loan, SuCredit has got your back. Follow this link
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We offer quick turnaround time
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