You can obtain a one-time cash amount through personal loans to use for personal purposes. A personal loan from a Singaporean bank, sometimes called a consumer loan, allows you to have enough money for personal needs unlike a mortgage or business loan. Personal loans are offered by a few financial institutions like DBS, including banks, money lenders, and P2P financing sectors.
Reasons for Getting a Personal Loan in Singapore from a Bank
You can obtain a personal loan for all of the necessary goals when you need money to cover an unexpected expense.
- Flexibility
The best loan option available is taking a personal loan in Singapore, as it is very flexible and easy to get.
- Personalloans do not require collateral.
In contrast to corporate and mortgage loans, which call for security, personal loans are unsecured loans. The bank or financial institution will only give you cash and interest based on how well they assess your creditworthiness and ability to repay debt.
- Have a flexible loan payback schedule.
The principal and interest rate of a personal loan define its duration. A range of payment options, from one to five years some banks even permit a longer period of up to ten years—will be presented to you. As opposed to alternative repayment options, which are less flexible and dependent on assets than personal loans.
To ensure that everyone is happy, you may also bargain with banks and moneylenders over the tenure requirements.
- Use personal loans for any purpose.
You can use a personal loan for any purpose, unlike other loans. This means that you have the freedom to use the funds from a personal loan for various needs, such as home improvements, or even a dream vacation. Additionally, personal loans typically have fixed interest rates, making it easier to budget and plan for monthly payments.
- Look for the EIR
Look for the EIR rather than the advertised interest rate because it displays the “actual” cost of getting a personal loan, including administrative costs. There should also be other factors, like:
- The monthly loan repayment instalment
Make sure the loan’s monthly instalments are within your means as well. To save money on monthly payments, don’t take out an excessively long loan, though, since you’ll wind up repaying the bank more in interest overall.
- Calculate how much debt you ought to take on.
Make sure the loan’s monthly instalments are within your means as well. To save money on monthly payments, don’t take out an excessively long loan, though, since you’ll wind up paying the bank more in interest overall.
- Selecting the loan’s term
Select the lowest loan duration you can afford, as taking out a loan for an excessively lengthy time indicates that interest will accrue over time.
Do you have any other options other than personal loans?
Some bank loans, such as renovation loans or SME (small/medium enterprise) loans, are available for particular costs, including starting your own business or remodelling your home. These are considered less hazardous than personal loans because the bank is aware of your particular plans for the money.
Consider the above-mentioned points before applying for personal loans in Singapore from a reputable bank. However, use the online personal loan calculator to find out the monthly cost.
