Your 2021 Personal Loan Guide in Singapore
Ever seen close friends or neighbors make huge purchases that left you wondering how they made it? The secret is now out – they used personal loans in Singapore.
The good thing is that you, too, can use personal loans to lever your life to the next level. See, if you want to finance a major asset that will significantly impact your life, a personal loan provides the cash you need and allows you to comfortably pay in installments. So, should you also go for a personal loan? We believe it will be a great idea if the money will be directed to good use. So, here is a comprehensive guide to personal loans Singapore in 2021 to help you make the right decision.
How Does a Personal Loan Work?
A personal loan is a type of credit that you borrow from financial institutions, and it is repaid in installments. The loan is unsecured, implying that you do not require collateral to secure it. If you are unable to repay, the lender will not come for your assets. This should not be a motivation to avoid putting effort into repaying the loan. Indeed, defaulting might cause severe damage to your credit score. So, stick to the agreed loan payment schedule. When borrowing the loan, make sure to understand the following concepts:
- Interest rates: This is the cost of the loan.
- Monthly payment: This is the money that you are required to pay every month for the entire term of the loan.
- Term limit: This is the length of time that the loan will be repaid. Do you repay the loan in 18, 24, or 36 months?
Reasons Why People Go for Personal Loans in Singapore
Although you have a free hand on how to use funds from a personal loan, it is advisable to direct it where it will deliver the highest value for money. For example, some use it to consolidate high-interest debts into a single and low-interest loan. Other top uses of personal loans Singapore in 2021 include:
- Buying assets.
- Funding expensive events.
- Paying for tertiary education.
- Purchasing a car.
- Meeting emergency costs.
- Home improvement projects.
Avoid these Mistakes with Personal Loans
While personal loans in Singapore are excellent to fill financial shortfalls, some people make mistakes that leave them in worse financial positions. So, here are common mistakes that you should avoid when using personal loans:
- Borrowing more funds than you are able to repay.
- Using personal loan funds to fund activities that do not add value.
- Not thinking about the cost of the loan when signing the loan agreement.
- Not adjusting your budget to cater to monthly payment.
How to Apply for a Personal Loan in Singapore
Now that you know what a personal loan is and how it works, it is time to make your application. Because of the large number of lenders in Singapore, applying for a personal loan can be very challenging. Imagine making dozens of applications trying to get the loan approved? Well, there is no need to do that anymore because Lendela is there for you.
Lendela, a lender comparison site, was created to make loan applications in Singapore easy and fast. The process only involves a few steps:
- Visit Lendela website and fill a short form. This should take you only a couple of minutes.
- Get offers from lenders ready to approve your personal loan.
- Lendela books an appointment for you to sign loan.
- Sign the loan and get cash sent to your account.
Do not wait until you can save enough to buy a car, pay for higher education, or get stressed about emergencies. Go for a personal loan Singapore with Lendela to get the funding you want.