Monthly loans are simply loans which you make pre-agreed monthly repayments for a specified period. The repayments will be at a fixed rate of interest which means that you pay interest on your monthly repayment.
These types of private loans in Singapore are frequently taken out to pay for significant purchases such as medical bills, home improvements or even a car. Monthly loans can even be used for debt consolidation to allow monthly repayments to be more manageable, hence making them suitable for people who live on a tight monthly budget.
The Advantages of a Monthly Loan
1. Fixed Rates Allow You to Manage Your Budget
Unlike some variable-rate private loans that are available in Singapore, you know exactly what your repayments will be each month with a monthly loan. The best part? The fixed rates mean that the repayments won’t increase, giving you peace of mind and confidence to make that significant purchase. You’ll have full knowledge of how it will affect your budget at the moment precisely, as well as for the duration of the loan. All you’ll need to do is borrow a one-off amount and keep up-to-date with the monthly repayments.
Monthly loans are thus ideal for those who need to manage their monthly budget carefully and can even reduce your overall monthly repayments if you use your monthly loan for consolidation purposes.
2. No Guarantor or Collateral is Required
For many people, it can be challenging to find someone who either willing or able to act as a guarantor and even asking if someone is prepared to fulfil this role can be embarrassing and uncomfortable for both parties. In addition, some private loans in Singapore also require collateral which you may not have or be willing to risk. If you have a tight monthly budget, or perhaps you are just starting out in the world of work, having sufficient collateral to cover a loan may be impossible. A monthly loan can free you from both of these problems allowing you to borrow the amount that you require. The application process is simple, with answers given within a few days.
3. Easy to Understand and Manage
Without a doubt, some forms of loan can be complicated and difficult to understand, involving compound interest or variable rates. However, this isn’t the case with a monthly loan. Even if you are a complete novice, the simple and straightforward payment plans make them incredibly easy to understand. All you do is borrow the amount you require and then repay an agreed fixed amount each month. The repayments remain the same each month so you can easily calculate the cost in real terms, helping to keep your finances manageable and straightforward.
Getting a Private Monthly Loan in Singapore With Fast Money
Fast Money’s monthly loans are offered at low rates making them more affordable than most other forms of private loans in Singapore. There are no application fees associated with this form of loan so, as long as you meet the legal requirements and you have a suitable credit score, you will be eligible. Check out our monthly loans available to find out how much you can borrow, over what period, and what your monthly repayments will be. If you’ve found this article helpful, our blog boasts a wide variety of articles on personal finance management that you might like as well!