A personal loan is the most preferred type of credit in Singapore. Most people go for it because it is unsecured, meaning that your personal assets will not be at risk if you find it challenging to repay. However, this should not in any way make you think of not paying the loan because it is likely to damage your credit score and compromise your ability to get credit in the future. If you are applying for a personal loan in Singapore for the first time, here are four things that you probably did not know about it.
Personal Loans Gives You a Free Hand on How to Use the Money
If you compare the different loans available in Singapore, from car loans to renovation loans, most of them are highly specific on what you can do with the cash. Actually, there is no option for the money being directed elsewhere. Take the case of a car loan. The cash for a car loan is only released to the dealer and you get to drive away in the car of choice. However, a personal loan offers you a free hand on how to use the cash.
If you wanted cash to buy household items and have now thought of something different, it is up to you to decide how to use the funds. You can even split the cash, with some going to something, such as meeting holiday expenses, and the rest buying new furniture.
Even the Unemployed in Singapore can Access Personal Loans
The perception that personal loans are only available for employed persons in Singapore is incorrect. Anyone with a source of income can get a personal loan to meet his/her needs. Most lenders will want to see the following to be able to process your personal loan if unemployed:
- Your source of income.
- Your credit score.
- Personal details
The best way to apply for a personal loan if you are unemployed is by using Lendela. Because they work with a wide range of lenders, the chances of getting several willing to work with you are pretty high. Remember to always go for the lender with low-interest rates.
The Interest Rate of Personal Loans in Singapore are Based on Credit Scores
As you make the application for a loan, you need to look at all parameters, from the loan term to processing charges. However, it is the interest rate of a personal loan that is of greater importance because it determines the cost of the loan.
When processing personal loans, lenders in Singapore look at your credit score to determine your creditworthiness. If the score is very low, the chances are that you will get a personal loan at higher interest rates. Because of this, you should consider improving your score before making an application for a personal loan.
Lendela is the Most Straightforward Way of Applying for a Personal Loan
For many people looking for personal loans in Singapore, the process of application can be pretty challenging. This is caused by the long list of lenders with varying terms and conditions for borrowers. This means that you will need to review a long list of conditions for different lenders before applying for a loan. Instead of following that path, why not use Lendela?
Lendela is a lender comparison site dedicated to helping people complete the process of loan application fast and conveniently. The site works with a long list of licensed moneylenders and all that you need to do is fill in a short application, which only takes a few minutes. Then, lenders willing to work with you will give their offers. Once you select the preferred offer, Lendela will book an appointment for you to sign the loan and the process is completed.