The personal loans have attained great craze due to the quick processing and minimal documentation. The reforms in the banking sector have also contributed to the increased demand for personal loans. Most of the people in the present world are corporate employees and have a fixed source of income. It was once said that the personal loans carry higher rates of interest. But, now the things are changed and personal loans are available at comfortable rates and are no tougher to afford if some precautions are taken.
Cheer up! Income slab is dropped!
Yes. Till recently the minimum income to be earned by an individual to attain the eligibility for a personal loan in Singapore is $2500. But, now there has been a change. People having an income of $1700 can even obtain the personal loan subjected to certain terms and conditions. So, people of lower income too can enjoy the personal loans.
What is the time period in which the loan can be repaid?
Usually these loans are advanced for a period of 6 to 84 months. So, these can be called as the short term loans.
What are the interest rates?
This is very crucial to deal with while taking a personal loan. Certain banks would charge higher amount for the personal loans while others would charge comparatively less. Preferring a bank charging lower rate of interest could reduce your monthly burden considerably. So, take care of interest rates before taking loan. You can find lower interest rates at the HSBC, Citibank etc.
This website allows you to compare the rates of interest charged by different banks in Singapore. Based on the bank the interest rates might range in between 12% to 15%. So, prefer the loan from a bank that charges lowest rate of interest.
Beware of processing fee
This is a charge levied by the banks for processing the loan. Certain banks offer a lower rate of interest but charge a higher rate of processing fee. So, consider all these aspects before taking a personal loan.
The documentation is very minimum for the personal loans. The following are the required documents
- Credit card if you opt for personal loan through credit card
- Line of credit or
- Pay Slips and CPF statements
- Identity proofs
Want to find a Best Loan?
Singapore is one of the popular cities across the world. Many corporate companies have their branches here. So, this is an industrially well developed location. Thus, more number of banks has the branches here and is always eager to offer the personal loans to the people. So, you will be fed up with number of choices.
While considering the best loan pay equal attention to all the aspects of a loan like rate of interest, tenure of loan, processing fee, pre closure charges etc. If you are having a good credit history, you can gain a rebate in the rates too.