If you are in need of emergency cash or money that you may not need quickly, whatever it is you can always take a personal loan. One of the things that you will know is that on personal loans the interest rates are low. Plus, it varies according to the need of the loan, like if you are taking a personal loan or fast cash Singapore loan for a wedding, then the interest rate is somewhere around 20.9% and it can differ also. So, whenever you are taking a loan there are a few things that you should consider, let’s look at those few things –
Use the Loan Money Wisely
You have the freedom to use the personal loan in any way that you want, but you should not misuse the freedom. So, the best way you can use a personal loan is to pay off the debt that is high cost. Suppose, for instance, you are paying 24% p.a. for your credit card balance that is outstanding. If you apply for a personal loan and you have to pay 7% pa. then it would make sense to take a personal loan and consolidate and pay off your outstanding balance.
Enquire About the Interest Rate
When you go to take a personal loan, you will come across these two terms – EIR and other is AR. AR is the applied rate and EIR is the effective interest rate. As per the AR, the principal loan remains constant throughout the loan tenure. Plus, it doesn’t take into account that the repayment results in a reduction of the amount (principal). EIR shows the real cost of borrowing provided (if) you make payment on time. The calculation of the same is done after taking into account the gradual reduction in the principal amount over the tenure of the loan. Make sure that you do the comparison of the EIR which is based on a similar loan amount and tenure.
Many people will have the question how long does it take to get a personal loan in Singapore? So, it takes 7 working days for the loan process and it also depends on whether all the necessary documents have been provided or not, like your payslip and others.
Know About the Fees and Charges
Besides inquiring about the interest rates, you should also know about the various fees and charges. Like that annual fee – some banks are there that will charge a specific sum fixed in addition to the interest that you are already paying. A five-year loan would mean that you will have to pay 5 annual fee payments. Then, there are also late payment fees for missing any instalments. A change in tenure fee is another fee that you may be required to pay.
Enquire How Much Loan Can You Take
Many people have this query how does renovation loan works in Singapore? The eligibility and age criteria are that you should be a permanent resident of Singapore and your age should be in between 21 to 65 years. They will check the proof of renovation work i.e., about the contractor. You can also get a second loan for the renovation of furniture.
Banks can decide on your borrowing limit and consider many factors such as your relation with the banks, your monthly income, your credit score, and so on. When a borrower is earning a minimum income which is required then he or she can be allowed to borrow up to 4 times the sum that he or she earns in a month. But if you are earning $30,000 less per year then there can be limitations, which you can check online.
What time will You Get the Funds? & How Reliable the Lender is are two important factors to consider when taking a loan.