Unlike specialized loans such as mortgages or home renovation loans, personal loans can be used for almost anything. Whether you want to finance your wedding or pay for your child’s tuition, a personal loan is a convenient way to borrow money that you can repay in a set number of monthly installments over a certain period. However, like any other credit facility, a personal loan should be taken only when you have a clear purpose in mind and can comfortably afford the monthly repayment amount.
Besides the interest rate, you should also look into the fees and terms & conditions to ensure that you are not paying more than what you need. While most financial institutions have standardised charges, you may be surprised to find that some charge additional hidden charges such as administrative fees or processing fees. It is best to compare these fees between different lenders to get the lowest personal loan singapore rates.
In Singapore, there are many licensed moneylenders that offer personal loans at reasonable rates. One such lender is Lending Bee, which has a team of experienced and professional staff who can help you choose the best personal loan package that suits your needs. They have also digitalised the lending process so you can apply for your personal loan via an online portal and receive an instant feedback.
Another good option is Credit 21, a leading licensed moneylender that offers personal loans to Singaporeans and foreigners who are working in Singapore. They have a long history in the financial industry and provide an efficient, reliable service to their clients. Their website has an online application portal where you can submit your personal loan application at any time and from any device. You can also check your loan status online at any time, avoiding unnecessary late repayment fees.
When choosing a personal loan, you should always consider the effective interest rate (EIR) rather than the flat rate. The EIR takes into account all the fees and charges, so it is a more accurate representation of what you will actually end up paying for your personal loan. In addition, it is compulsory in Singapore for moneylenders to state the EIR alongside the flat rate in large font to ensure that borrowers are aware of all the costs involved.
As a general rule, personal loans are only available to individuals who have a stable income stream and a credit record free of defaults or arrears. For foreigners, the requirements may be stricter as the government imposes specific regulations on moneylenders that work with them. To ensure that you can qualify for a personal loan, you should speak to your bank or licensed moneylender to understand their criteria. Typically, you will need to present proof of identity and employment, as well as an updated payslip. You may also be required to submit a bank statement or utility bill as additional supporting documents. In addition, some banks may have minimum income requirements to qualify for their personal loans.