A personal loan is one of the most common forms of money loan in Singapore. They are loans that are given to individuals for a variety of different reasons. You may want to consider a personal loan rather than go through the sensitive process of borrowing from friends or family, to make a significant purchase or to pay for healthcare. Of course, you’ll be searching for the lowest interest rate personal loans in Singapore to ensure that you can afford the loan. That’s why we’ve rounded up our best tips from our team of experts at Fast Money for you to consider when getting a personal loan in Singapore.
How Do Personal Loans Work?
When you decide to take out a personal loan, you will need to consider three things: how much you want to borrow, how long you want to borrow the money for, and what monthly loan repayments you can afford. You then begin your search for the lowest interest rate personal loans in Singapore to find an organisation such as a bank or licensed money lender that are prepared to lend you the money.
Figure Out Common Terminology
You will no doubt have heard various terms associated with any money loan in Singapore, but the most common are the following:
Interest Fee – the interest fee is the amount that the lender will charge you for providing the loan. The interest fee will generally be shown as an amount per year although it will be applied monthly to your repayment amount. At Fast Money, we offer personal loans at some of the lowest interest rates in Singapore.
Monthly Instalment – the monthly instalment is the amount that you repay for the loan each month. It will include the principal (the amount you borrowed) plus the interest fee. The number of monthly instalments that you need to pay along with the amount that you pay each month will be determined at the start of the loan.
Processing Fee – the processing fee is the amount that is charged by the lender for doing the initial work to provide the loan. It can either be a percentage of the loan, or a fixed rate. It is paid at the start of the loan and often taken off the principle. Once again, at Fast Money, we keep our processing fees as low as possible to keep the costs to a minimum.
Long-Term Loan or Line of Credit
A long-term loan is a loan where you borrow an amount of money over an agreed period, at a pre-determined rate of interest. These forms of money loan in Singapore usually are to finance significant purchases and form the lowest interest rate personal loans in Singapore.
In comparison, a line of credit in terms of a personal loan is commonly be associated with a Payday loan. They are intended as an advance until you are paid and should be used as a short-term borrowing option to cover shortfalls at the end of each month. The interest rates that are charged are far higher than with a long-term loan but can be granted quickly.
How Fast Money Can Help With Personal Loans
Personal loans are an ideal way of either funding major purchases or to help fund unexpected costs at the end of a month. At Fast Money, we have a range of personal loan options available are rates that you can afford. Please contact us for more details about how we can help you.