An increased number of the consumer are now availing the personal loans for making their purchase with ease. They are also converting personal loans into equated monthly installments (EMI). EMI is common among the Singapore people. Singapore is attaining its economic growth and development. With the help of financial support, people can able to satisfy their needs and requirements.
Several money leading companies and financial institutions are available in Singapore. You can get the personal loan Singapore from those money lenders to satisfy your needs and requirements. Actually, what are these personal loans? How these personal loans are satisfying our needs? These are the common questions that you have in mind. To find the answers to these questions stay on this page and read the following content.
What are these personal loans?
Personal loans are nothing but the unsecured loans that can take by the individuals from the money leading companies or the financial institutions to meet the person’s needs and requirements. It can be provided based on the key elements like the income level, credit and employment history, and the repayment capacity. Unlike home or car loans, a personal loan does not have any type of collateral properties for security reasons. As it is unsecured loans, the loan applicant will not look for the collateral properties like gold, car or home to avail the loan from money lenders. The personal loans are available with higher interest rates than the secured loan type. This is because of the greater risk that is available in sanctioning the loan.
Main usage the personal loans
The personal loans can be mainly used for personal financial problems and the money lenders are not monitoring the use of loans. It can be mainly used for renovating your home, marriage and related expenses, in case you are planning to go for a long vacation, then you can make use of personal loans, for your child’s education, for purchasing the latest electronic gadgets for your home or in the case of an unexpected medical emergency. It can be also used for fixing your cars, investing in your developing business and down payment of a new home.
Eligibility criteria for applying for personal loans
Every money lenders are framing the different eligibility criteria for applying for the loan from their money leading companies. Easy credit Singapore is one such money leading company that is offering the general eligibility criteria. The general eligibility criteria include the age of the loan applicant, income of the loan applicant, place of residence and the capacity of repaying the loan amount. For getting the personal loan from money lenders, you must have a regular income source and the moneylender will check whether you are a salaried individual or self-employed person. The money lenders will also check for the company that a loan applicant is working.
Duration of personal loans
The unsecured personal loans have a shorter duration. Mostly the duration of the personal loans will be from 1 to 5 years. The longer tenures are also allowed in personal loans but it is rare.
When will you get the loan amount?
Normally, the loan amount will reach the loan applicant within 7 days from the moneylender. Once the loan amount gets sanctioned, you can get the loan amount by receiving the paycheck or draft equal to the loan amount or the amount will be deposited directly to the savings account.
Is there any limit for borrowing the applied loan amount?
The loan amount will depend on the income of the individual and also varies based on whether you are a salaried person or self-employed. The moneylender will restrict the loan amount once the EMI is crossed more than 40-50% of the monthly income. If you have any existing loans, the money lenders will sanction the personal by considered the already availed loan amount. For the self-employed persons, the loan amount will be depending on the profit earned from the business.
You can also get the minimum loan amount from the money lenders. The maximum amount of personal loans will be depending on the credit score of an Individual and the current income of the individual. If you are having a good credit score, then you can get the chance for sanctioning a higher amount.
Types of interest rates in personal loans
Two types of interest rates are available in personal loans. They are fixed rates and floating interest rates. As the name indicates, you can get the fixed EMI’s for every month. The floating rates of personal loans can be varied for half-yearly or the annual basics.
By now you can get a clear idea about the unsecured personal loans. Make use of this article if you need any clarifications regarding personal loans.