Personal loans are loans that banking institutions and moneylenders offer to borrowers. This loan type can either be unsecured or secured loan. The unsecured loans are always not backed by collateral while the secured need you to provide collateral when applying. Before a moneylender or a bank can offer you a personal loan, they use your credit score records to determine whether you are credit worthy. Personal loans are a form of an instalment loan, this means that you make regular contributions in a given loan term. The interest rate on personal loans is often fixed.
Lowest interest personal rates Singapore ensure that you make affordable monthly contributions. This makes the repayment of the loan convenient for a borrower due to the low monthly contributions. When considering taking a personal loan in Singapore, it is suggested that you shop around for the moneylenders who offer the lowest interest rates that fit your budget. When you take an unsecured personal loan, ensure you repay back the entire loan amount plus the interest accrued lest you risk being taken to court by the bank or moneylender should you default payment.
Who Needs Personal Loans
There are situations that necessitate you taking a personal loan. A personal loan often offers a financial relief for an individual as he seeks to address financial emergencies. Some of the situations that call for you to take a personal loan include;
- Personal loans can be used to consolidate credit. This will reduce the number of loans to one single loan.
- A personal loan can be used to refinance education loans. This loan helps you pay off a loan with a higher interest rate with a one off payment and service the new loan which offers lower interest rate.
- Individuals who wish to finance a wedding can greatly benefit from a personal loan.
- A personal loan can be a source of funding when you want to make purchases, like a car or a house.
Banks Provide Great Personal Loan Rates
In Singapore, three banks are offering the lowest interest rates personal loans. The lower the interest rates, the better it is for an individual if they want to take a large amount of money. These banks are UOB, HSBC and City Bank Credit Paylite.
UOB Personal Loan
In Singapore, UOB offers one of the lowest interest rates on their personal loans. a new customer, applying for a UOB personal loan with a principal of S$10,000 and three-year loan tenure gets a 4.38% annual flat rate.
This makes the monthly instalments lower and a waiver will be offered on your processing fee. In order to enjoy personal loans from UOB, you need to be a Singapore national or a permanent resident. You need to be aged between 21 and 45 years with an annual income of S$20, 000 and above. If aged between 21 and 55 years, the required income must be above S$30,000.
HSBC Personal Loan
HSBC personal loans have a yearly interest rate of 4.5% for a period of 3 years. A waiver of S$88 will be offered off the processing fee. And S$50 cash back welcome.
HSBC Personal Loan has the longest loan period on the Singaporean market. This covers a 7 year period.
Singaporeans need to have a yearly income of above S$30,000. The maximum amount that you can borrow is 4 times your monthly income.
Foreigners living in Singapore need a minimum yearly income of above S$40,000 and are allowed borrow twice their monthly earnings and a max amount of S$100,000.
Citibank Ready Credit Paylite
Citibank offers an interest rate of 4.55% annually for a loan as low as S$1,000 and a 3 year loan period.
To qualify for a Citibank Ready Credit Paylite loan, Singaporeans need minimum annual earnings of above S$30,000. Foreigners need at least over S$42,000.
Not Everyone Will Meet The Strict Requirements
Accessing a personal loan for an individual from a bank and other financial institutions can be a challenge owing to the credit record. However, legalized moneylender available in Singapore can help.
Moneylender institutions are regulated by rules that have been set by the MAS to help govern their financial services and to ensure uniformity in the services they provide. Moneylenders are recognized in Singapore and are required to be registered under the Registrar of Moneylenders.
Depending on your financial commitments and needs, the choice of a reliable moneylender in Singapore is very essential. Different moneylending entities offer different financial loans.
The loan application process is easy and simple. It can be done in person at the moneylender’s offices or online via their platform. What you need as a borrower is to submit appropriate personal information like your contacts details, a current payslip, your employment status and all the supporting documents that the moneylender needs prior to processing your loan application. With the appropriate documentation, your personal loan will be authorized immediately in a matter of minutes.
Before taking a loan, make sure to shop around for the suitable moneylender for your financial needs. Read through the interest charges and penalty clauses as well as any other additional fees to be familiar with what you are signing. Ensure you can make regular loan repayments and on the agreed upon date to avoid defaulting penalties.
Ensure you understand the stipulated terms of the loan application form and when uncertain ask for the loan officer to clarify the terms and details of the loan. When the terms are not acceptable to you, you can choose to work with another licensed lender who will offer you the best loan terms for your needs.
Moneylender Approve Loan Faster Than The Banks With Less Documentation
A Personal loan an unsecured loan, therefore, no collateral needed during application. Money lenders offer personal loans to individuals who have an urgent need for quick cash t help meet their financial obligations. The money lenders require a borrower to meet the following requirements in order to qualify for a personal loan:
- An individual must be a Singaporean or a permanent resident
- You are to be aged 21 years and above
- You need to be currently employed
- You need to present a valid identity card
- You are required to present the money lender with current 3-month payslips
- You will need to submit 6 months of CPF contribution statement
- Submit your recent income tax statement
- Present your mobile bill as proof of residence
- You should not have an undischarged bankruptcy or be undergoing a bankruptcy proceeding
Moneylenders loan application process is fast. Once you have submitted the relevant documents, you will be informed of the loan approval status. Paperwork is often not needed to approve your loan application, therefore, the approval process is smooth. Once the approved money is disbursed to your account on the same day for your convenience.
Personal loans are an alternative source of funding for individuals who are in need of emergency money for their financial needs and commitments. Although personal loans are easily accessible through moneylenders, be careful not to take too many personal loans which will eventually dig you deeper into more debt making it difficult for you to make repayments. Ensure you take loans that your budget can accommodate without causing you any financial strains. Make sure you take the lowest interest rate personal loan Singapore which guarantees that you pay low monthly instalments.