Top 5 Eye-Opening Facts about Personal Loans You Never Read Anywhere

In Singapore, personal loans often serve as easy ways to obtain quick money from a lending institution like a bank, etc. If you have never used these loans before, I would urge you to try one if your financial situation is critical. But before you do, here is what I can tell you about personal loans in Singapore:

1. Personal Loans SG Are Cheaper than Credit Cards

I don’t know about anywhere else, but in Singapore, personal loans are more affordable than other types of loans. Their lower interest rates compared to those of other types of loans make them a cheaper financial bail out option. In fact, the average interest rate for these unsecured loans is usually about five percent lower than the average interest rates for other loans.

2. Personal Loans Can Be Used to Get Out of Debt Trouble

Falling behind on your debt repayment can result in serious consequences, including accruing further interests or having your properties confiscated. If you have fallen on hard times, and you are not able to service your debts, you can opt for a personal loan SG to offset your existing debt and avoid a penalty. Personal loans carry low interest rates and therefore are easy to repay compared to other types of loans. As such, you will not have a hard time keeping up with your payments as you otherwise would with another type of a loan.

3. Personal Loans Are Available with Both Short Term and Long Term Repayment Options

While many people think of personal loans as short term loans that are meant to be repaid within a couple of weeks or months, the reality is that these loans can be both short-term and long-term. Long-term loans are normally binding for a period of not less than five years. The long-term repayment option can be great for anyone who is financially shaky as it gives them enough time to sort themselves monetarily and repay the loan.

4. Personal Loans Are the Safest Type of Loans Formally Available

One important characteristic of personal loans is that they are unsecured. A personal loan lender will not require you to provide any form of collateral as security. So, no item important that you own will be at a risk of getting confiscated in the event that you default on the loan terms and conditions.

5. Personal Loans Have a Maximum Limit

A question we get asked often times by our clients is; how much money can I borrow with a personal loan? Usually the amount of cash you can borrow with this type of loan ranges between $1000 and $50,000. This depends on a number of factors, including your income, your existing debts, your credit score and the lender.

Final Thoughts

Now that you know all the facts about personal loans, it is time to obtain one if you are in need of financial assistance. As long as your credit score is good, you should be able to succeed in getting a loan from your lender. With nothing more to add, good luck with the process.