Make a Personalized Financial Plan with Personal Loan!

Do you need a personal loan? Don’t worry! The bank will come to your place at a convenient time, collect almost no

document, will complete all the formalities and you will get the amount in just a matter of two or three days. Sounds

incredible! But is it really true?

Before exploring the real truth behind these statements, know what basically personal loan means!

A personal loan is so extensive and widely prevalent in the society that a closer look into it makes people realize that it is

everybody’s need. Those who opt for this type of loan see it as a solution to their financial needs. People avail personal

loans to meet their personal exigencies; be it medical or engineering or study in abroad expenses of the kids or heavy

hospital bills of parents, your house needs renovation or planning a big fat wedding. Everything that could burden you

financially can be solved with personal loans.

How Personal Loan is different from other kinds?

Not everyone, but those who have applied for it, must know about home loan. If you are opting for a home loan, you are

restricted to use the amount to either construct or buy a home. The person won’t be allowed to use it for other purpose.

The same goes for a car loan. And if you are opting for personal loans, you can spend the amount anywhere. The bank,

which will sanction the amount won’t be bothered about where you are spending the amount and in what way. The best

part of personal loan is that it does not require any guarantor.

How can you Avail Personal Loan?

The amount that is sanctioned in personal loan depends upon the salary of a person who has applied for it. From as low

as S$20,000 & above, one is eligible to get the loan. There is also a provision to take the loan jointly with spouse and in

this case, both the incomes would be considered before sanctioning a personal loan. Not only salaried persons, but self

employed people can also avail this opportunity if they pay taxes and falls between the age of 25 and 65. Such people will

have to prove that they will return the loan amount and how.

There are no one criteria for sanctioning a personal loan. Personal loan in Singapore varies from one bank to another and

knowing the complete details is necessary in order to avoid future worries. Few banks sanction loans only if they are part

of it or they have accounts in their banks. But it is not the same for every bank.

How Interest Rates are calculated?

Few banks offer interest rates at 16 percent, while few others at less. It keeps on varying but the less interest rate is not

enough to take the loan from that particular bank. One needs to understand how the interest rate has been calculated for

Personal loan in Singapore. Find out whether the rate is fixed or flexible or depends upon market variations. In the

flexible, the interest rate is calculated on the amount left after paying first installment. Annual interest rate is calculated on

the left amount paid after the first month of the installment.

These fluctuating and kind of confusing interest rates should be understood completely. EMIs should be calculated along

with calculating the total actual amount that is needed to be paid, which should be inclusion of processing fees and

penalties, if exist.

To Sum Up!

Personal loan definitely looks appealing, but it is necessary to understand its aftereffects too. You will have to pay a

constant installment on the monthly basis. So, consider your financial circumstances and your situation and then opt for

personal loans.