To take a Personal Loan Singapore, you should not have a good credit score, but you should keep a good repayment history as moneylenders do not look at your credit score. This is the same how Businessman takes a business loan to fulfil the amount of expense needed to run their business.
Many people opt to take a personal loan to pay the number of expenses for anything like a wedding, vacation, car purchase expense etc.
A personal loan is a quick and the easiest way to decide for the payment of your future as it can help you to buy anything you want without any hesitation, but you will have to repay the amount in the given time or else it will affect your credit score massively.
Tips for selecting the right personal loan
Here are the tips that you can use to select the right personal loan for you: –
- Compare interest rate: – First thing to check while taking a personal loan is that you will have to check the interest rate that has been offered to you and instead of directly going to the bank or any other website and checking individually for interest rate offered you should go to that kind of website which compares different interest rate for you such as Paisa Bazaar.
- Compare fees and charges: – Then after selecting the right personal loan you will have to check all the different fees and charges that you will have to pay like late payment fees, prepayment fees, cheque bounce charges, pre-part payment fees etc. Some banks or money lenders offer limited offer on it so that makes it even more convenient for the borrower as he or she will have to pay fewer fees as well as charges.
- Know your EMI:- Whenever you are applying for any personal loan, you should remember that there are going to be charged which you will have to monthly so as to complete the whole amount of the loan. This charge is called EMI (Equated Monthly Installment) before applying you should know the EMI of the loan and to find that you will have to use an EMI calculator which you find online. To calculate just enter your loan amount, tenure and the rate of interest charged, then you will see the monthly EMI and will be able to pay for other expenses as well.
- Flat interest rate and reducing interest rate:- In this loan, the lender will ask you that which you want to take it can be the flat interest rate in which the interest rate is all the same throughout the month till the amount is repaid and in reducing interest rate the monthly EMI will reduce as you keep completing the payment of 1 month and before choosing either of these plans you will first have to check and see that which type is offering a less rate of interest than the other and select that one only.
How to choose the right personal loan for yourself
Whenever you are taking a personal loan for yourself, then you should consider reviewing all the different banks and also the financial institution that is providing this type of loan at a different rate of interest and also the tenure for which you can take the loan and repay it from.
Whenever a person takes a personal loan, the provider will ask the borrower about the reason for which they are taking a loan for and then if you are doing all this process offline, then it will take some time of nearly a week to process the paperwork and the money to be deposited in your bank account.
Here are the five reasons to select the best personal loan for yourself:-
- Compare interest rate:-
Whenever you want to take a personal loan, you should always research the interest rate yourself as you might go to the bank where you have a saving account, and they will tell that you have to pay 14% interest which you might think is low.
But you should always research as you might get a lower rate of interest in the different bank as DBS bank provides interest from 3.88% and HSBC will provide 3.7% interest depending on your requirement and credit score.
- Compare fees and charges:-
Interest rate is not the only thing that you have to research about, but you should also check for any hidden fees that bank is charging you like processing fee, paperwork fee etc.
There are also banks that offer you the only interest rate and do not charge you for anything like paperwork charge or even processing of the paperwork at different places charges HSBC bank take 2.5% fee as the only charge in the starting and then it will only charge you interest fee.
- Look for repayment options:-
Whenever you take a personal loan, you should consider checking the different types of repayment option offered by the bank as many banks like HSBC will allow you to select the amount you want to repay in monthly instalments.
After you have checked the EMI calculator on HSBC’s official website, they will give you the option to select the amount that you want to pay monthly, but it cannot be lower than that shown in the EMI calculator.
- Find an EMI you can afford:-
Then after doing all that you have to select the EMI option which you want and does not have any extra charges hidden in it.
- Research other loan’s:-
You always don’t have to go directly go to the bank to take a personal loan for yourself as you can go to your family members and can also ask your friends to give you some amount of money as a loan.
This could save you some extra money such as you don’t have to pay the hidden fee like processing fee and also large interest rate.
I hope you have all the information you were looking for in this article.