5 tips when applying for personal loan with a credit company in Singapore
A personal loan refers to a loan that an individual gets from a financial institution with the anticipation of paying it back in monthly installments. There is an interest charge in Singapore, and it ranges from 3.5% t0 10.8%.
It also has a loan repayment period that ranges between 12 to 84 months, whereby the borrower is required to pay a minimum amount of $1,000 if one is to qualify for it.
There are so many reasons why one proceeds to get a personal loan in Singapore: emergency loans, medical, education loans, debt consolidation, and many more. All these are put in place to help the borrower meet the short-term or long-term financial obligations, which may have negative consequences in the future if not catered for in good time.
Whatever reasons that may be there, it’s imperative to have an idea of the best personal loan that one can take in Singapore. This is because numerous financial institutions offer a wide variety of products with discounts and periodical promotions, which can be an overwhelming situation for a borrower.
Below are some essential tips that one should place in mind when applying for a personal loan with a Credit company in Singapore.
- Plan for the loan and put it into good use
More often than not, borrowers get excited about seeing huge monies in their accounts and forget the reason for taking the loan. This ends up disorienting the finances and, at times, leads to regrets. Much as this is a freedom that everyone ought to enjoy, put the money into good use.
For instance, consolidate the high-interest loans using the new disbursement, pay off the medical bills as and when they occur.
This is done to ensure that you do not fail in your financial planning and that you will be able to plan the finances accordingly.
- Research for the Best Credit Company in Singapore before Signing up for any loan.
While there are tens of financial institutions offering Credit facilities in Singapore, it is essential to research for the best company that will meet either the short-term or long-term financial needs with ease.
Some companies are legitimate, while others are loan sharks and are out there to exploit individuals who are not well conversant with the loan operations. For instance, some may charge as high as 20% interest on loans, while the government-approved loans range between 3.5% to 8%.
Others do not have physical offices, and should there arise any issue; one will not have a fallback position to seek help from.
One of the best moneylenders in Singapore is Su Credit PTE ltd. They will offer the best interest, take you through all the terms and conditions and ensure you are well equipped with their loans.
Next time you look for a personal loan in Singapore, whether to sort the emergency needs or for a holiday session, visit https://sucredit.com.sg/ and enjoy all the benefits that go hand in hand with this esteemed moneylender in Singapore.
- Know Your Credit Score
This is very important. It helps one to know the credit standing at the time of loan application. Remember that the credit score reflects one’s financial history, and therefore, it is essential to maintain a good credit score. This will enable one to get loans at low-interest rates and qualify to get loans with the best financial institutions in Singapore.
Always remember that the higher the credit score, the more one gains trust in any financial institution. Therefore, as you look forward to building your loan portfolio, always pay in time to maintain good credits at all times.
- Be familiar with the Interest rates, fees and Commissions, and any other charges applicable at the time of loan application.
Before settling down and making a loan application, check from the various financial organizations on how they charge. The interest rate may vary from one company to another, and there is a need to understand the charges beforehand.
Some companies also have annual charges, which is an additional figure from the interest rate offered. This may render the loan to be too expensive, while there are moneylenders such as Su credit Pte Ltd that do not have such charges in place.
How about the late payment fees? Many companies have a percentage set, where they impose charges on late repayment. Check out on those who offer lenient late repayment charges.
Sometimes it is inevitable to get late in making the monthly repayments, and if costs are too high, the result is that they would end up paying costly charges.
Moratorium changes are another factor to consider when it comes to the charges. Weigh the amount of money one will be asked to pay in case of loan moratorium and change of tenure. By doing this, one will be able to decide on how viable the loan might become.
- The Turn Around Time
Speed is of utmost importance to the borrower and, as such, very important to get information beforehand on the duration it will take for the loan to be disbursed. This, however, ranges from one lender to another. In most cases, banks go for more than a week; licensed moneylenders can take as little as 24 hours.
So, depending on the urgency of the loan, the borrower should not be coarse by the lenders and find themselves in the wrong hands. Always work within your limits and convenience.
For instance, with the digital era, companies have migrated to online loan applications, making it more convenient and improving on speed compared to the olden days when such was a dream.
Applying for a personal loan is an exciting experience if one goes through the right path. Again it is a way of raising cash quickly and efficiently, and as such, one must read through the terms and conditions of the loan and confirm that you are in safe hands.
Also, ensure that the loan tenure is within one’s ability to repay the loan depending on the source of income, and you will be good to go.