When we need extra money to fulfill our unexpected expenses, we proceed to borrow a loan. Money is an important thing to survive our life perfectly. Most of us have a steady job, which doesn’t always recover our extra requirements. We have a variety of reason to consider taking a personal loan.
What is a personal loan?
To acquire a loan causes for an uncased debt is called a personal loan, which is not backed by collateral. For personal purposes, we require to a personal loan, such as medical fee, school fee, to buy a car, renovation our house and also for a vacation. To borrow a loan is not so good but in difficulty, it is very helpful. So at first, we should think, is it important for me to borrow a personal loan? You can take a personal loan from banks or Licensed Moneylenders. Before to give you personal loan lenders will help to determine your credit score whether giving loan and at what interest rate. On the other hand, banks will not give you a personal loan if you have a bad record.
Personal loan and credit card loan are not same.
Credit card loans are revolving loans which have no fixed payment term. It has open for a fluctuating interest rate. On the other hand, the personal loan has not this type of hassle.
What are the benefit of a personal loan?
A personal loan has some benefit then credit card loan.
- Personal loan rates are cheaper and lower monthly payment amount.
- Flexibility is another advantage of a personal loan. You can take a personal loan in many ways.
- No collateral needed.
- A personal loan has a fixed interest rate.
- A personal loan can help you to solve your tough situation without any hassle.
Some tips for personal loans in Singapore.
When you need a personal loan, at first you should know what is better, a money lender or a bank? A licensed money lender has so much benefit than a bank. There are so many licensed moneylenders in Singapore. Before borrowing loan you should select one moneylender from the crowd.
- You should know what is the terms and conditions of the money lender. And choose one which will suit your particular situation.
- You should know about the fees of the money lender. Are there additional daily, weekly and monthly charges?
- You should know if the money lender has any penalty charges, in the case of an early payoff.
- You should choose this moneylender which offer low-interest rate and friendly services.