Are you thinking of going for a holiday or making a major purchase but do not have enough funds? Well, there are a number of options, such as borrowing from friends or selling personal assets, but the best of them all is taking a personal loan. This post will tell you more about personal loans in Singapore, including the special benefits to anticipate.
A Closer Look at Personal Loans SG: How Do They Work?
A personal loan is a type of unsecured credit that helps you make a major purchase or use it for other personal reasons. It is provided as a lump sum, and you are required to pay back the principal plus interest in monthly installments during the life of the loan. If the loan attracts other charges, such as processing and early payment fees, they also form part of the amount payable.
The most notable thing about personal loans in SG is that you have a free hand on how to use the funds. Once the loan is processed and money deposited into your checking account, you are free to use it as you wish. However, it is important to be extra careful and use the funds in a prudent way. Here are some examples of awesome methods of using personal loans:
- Consolidating high-interest and stressful debts into a single low-interest personal loan.
- Buying household electronics.
- Paying for college.
- Clearing medical bills.
- Home renovations.
- Travelling for a holiday.
Special Benefits of Using a Personal Loan
In addition to giving you more flexibility on how to use the money, the best personal loans in Singapore also come with the following irresistible benefits.
Faster Processing Time
There is nothing as stressful as having to wait for weeks or months before a loan is approved, especially when faced with an emergency. However, you have all the reasons to smile because a personal loan in Singapore is processed pretty fast. You will even get the loan processed faster by using Lendela, a loan comparison site.
No Collateral is Required
If you take a secured loan, it means that the asset used as collateral is put at risk. If you are unable to repay the loan, the lender may sell the asset to recover the funds. This would cause the loss of your asset and a dip in your credit score. However, you can avoid these by taking a personal loan.
Because personal loans are unsecured, lenders will not come for your asset if you are unable to repay the loan. The only loss that you will get is damage to your credit score. If you repay the loan as agreed with the lender, a personal loan can also help you to build your credit score.
Attracts Fixed Interest Rates
Another impressive thing about using personal loans SG is that they attract fixed interest rates. Unlike other forms of credit, such as credit cards that have varying interest rates depending on the balance, the rates for personal loans are fixed. This implies that you can prepare adequately for repayment during the entire loan term.
How to Apply for a Personal Loan Singapore
Now that you know the main benefits of taking a personal loan, are you ready to apply for one? The simple and straightforward method of applying for the loan is using Lendela, which requires you only to follow these few steps:
- Visit Lendela’s website to create an account and fill the personal loan application form. This should take only a few minutes.
- Get personal loan offers from various lenders in Singapore.
- Lendela will book you an appointment with the preferred lender.
- Sign the agreement. Get the money in your account.
Lendela offers you the simplest way to compare lenders in Singapore so that only the one with the best terms and conditions, such as interest rates, is selected. Make sure to pay the personal loan as outlined in the agreement to avoid penalties and damage to the credit score.