Do’s and Don’ts to Keep in Mind While Getting a Personal Loan in Singapore

1. Do’s and Don’ts to Keep in Mind While Getting a Personal Loan in Singapore A personal loan is a type of unsecured loan which helps in meeting your current financial needs. Typically, a personal loan doesn’t need you to pledge any collateral and you can use the personal loan for any legitimate financial need. You must repay according to the agreed terms with the bank. In Singapore, you can find several options for a personal loan. However, the two safe and common ways to get personal loan in Singapore are banks and money lenders. Here’s a look at both the options: 1. Banks The first and most common place to get a personal loan is the banks. Each bank differs from the other as far as repayment, interest rate and maximum amount of loan that the bank sanctions is concerned. However, there are few common requirements one has to meet which consists of: - You need be a Singapore citizen or a permanent resident. - You need to have annual earnings of more than $20000. - You need to have sufficient documents which include personal information, bank statements, and the salary slip. - You should be 21 year old and above to be eligible for the loan. 2. Money Lenders The alternatives to banks for personal loans in Singapore are the money lenders. Money lenders are a licensed group of individuals who sanction either a small or a large amount of money as a personal loan. However, unlike banks, the money lenders don’t have a fixed rate of interest. With minimum paper work and instant cash availability, borrowing from money lenders is the smartest choice for many. The main advantage of borrowing money from money lenders over banks is their quick approval process and flexibility in loan repayment terms and conditions. Here’s a look at some of the Do’s and Don’ts for personal loan: Do’s: - Be specific as much as possible while applying for the personal loan. - Always explore all the available options by carrying out a thorough research. - Figure out the late repayment fee in case you fail to repay the loan on time. Don’ts:

2. - If you are planning to take a major loan in the near future, it is advisable not to take a personal loan within the span of taking a major loan as it affects your debt servicing ratio. - Never apply for a personal loan if you are not sure about the penalty in case you fail to repay. If you are a foreigner in Singapore with a valid work permit or employment pass, and need money to make a living or start a business, you can apply for the foreigner loan in Singapore. Explore the web for information and tips on how to apply for foreigner loan in Singapore.