9 Smart Tips in Choosing Right Personal Loan

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9 Smart Tips in Choosing Right Personal Loan

Banks all over the world including Singapore, have lots of conditions while giving a personal loan. Starting from reason to salary statement and credit score checking, everything is done by them. But in the end, people won’t get a fruitful result. Why? Because they make some mistakes while selecting fast cash loan singapore. Here, in this article, you’ll see what the conditions are, you must verify before picking up banks arbitrarily.

There are mainly 5 ways; you need to follow to get the best personal loan in Singapore.

  1. Know Your Need First

Knowing your need means you have to calculate how much amount is going to help you. Deciding maximum personal loan singapore can help you to select the best banks. Why? Try to understand it with an example. Suppose, you have borrowed a credit card from a bank and have used it several times. After a certain time, you need to repay them. Now, if you select a bank whose EIR and FIR are more than the credit card’s interest rate, and then it won’t help at all. So, whether you are taking a personal loan for a wedding, house repairing purpose, study, make sure you fix a budget by finalizing your needs.

  1. Check the Terms and Conditions

Your next priority will be checking the terms and conditions properly. Because if you ignore a single statement, it can hamper you in the future. Some banks make the terms and conditions part too much longer and put hidden charges in it. So, make sure you are checking-

  • Age Limitations
  • Payment Schedules
  • Credit Score Limitations
  • Conditions for Applying for Loan

Keep these points in mind and the whole paper including the interest rates.

  1. Compare The EIR and FIR

Effective Interest Rate and Flat Interest Rates are two things an applicant must check for. The most important part is the EIR. The effective Interest Rate is the cost of the loan. Though you are paying the interest on time, you need to pay additional charges too. So, compare the EIR of several banks. Select the bank which is offering the lowest EIR.

  1. Go For The Banks Which Give You Instant Approval

It will be a really hard decision for any bank to give an unknown applicant an instant loan. But it is also necessary to look from the applicant’s side. If the applicant needs the loan immediately then a long checking process can hamper the situation. So, do a little research. Find out the list of banks which are satisfying the above two points and giving you an instant loan. Choosing the online platform will be best to reduce effort and time.

  1. See Who is Offering Best

There are lots of schemes going on particularly on personal loans. A lot of banks are giving a heavy discount on borrowing a personal loan. It would be a great help for the consumer. But get confirmation that there are no hidden charges within the offer.

  1. Check Loan Amount

There are certain points in life where you may know the amount of money you want to borrow for example buying a personal loan for educational purposes. But at times you might not know the amount to be spent on a task, for example, a medical emergency. In such scenarios always look for substantial loans and banks or licensed money lenders who provide such loans. Opt for lenders who provide withdrawal of loan amounts in parts as required. This way you would only pay the interest and EMIs on that particular loan amount.

  1. Check Penalties Before Hand

There are certain money lenders or banks who show lower interest rates and people end up taking personal loans from them. But what they don’t disclose is the penalty and pre payment charges. After everything is finalized they will ask you for pre-payment fees which will leave you in a blank state of mind but you are bound to pay it. Similar ways there are a lot of penalties within this process of repayment of loans. Make sure you clear out all these extra charges before finalizing the loan to help you protect from further damage.

  1. Minimal Documentation

If you are applying for a personal loan, then it’s obvious that you have an urgency. In such cases, choosing the minimal documentation option is all what you need. Instead of going to the banks for availing personal loan options, try licensed money lenders this time. They are trustworthy, friendly, approve loans quickly and the best part, you don’t need too much paperwork, it’s clean and hassle free. Another thing which you can try out if you are comfortable in applying for loans online. This is a very subjective opinion but online loan application is one of the best revamp that has happened in the banking industry.  From the comfort of your home, you can fill up the application form and all the other details required. They will see your application immediately and depending on the urgency of the situation grant you your personal loan. The acceptance letter arrives within a day or two, sometimes even within hours. Is that fast and requires minimal almost negligible amount of paperwork when compared to physical banks.

  1. Tenure

People often choose a longer repayment period with low EMIs to avoid pressure while repaying their loans. But they don’t think that they are unnecessarily wasting their hard earned money on paying interest. One should always do all the calculations of monthly expenditures and set aside sufficient amounts of money for repayment. Try to repay the loan within a period of one year or the sooner the better. It will protect you from pressurized situations later and would help you maintain healthy money relationships.

Verify these 9 points while selecting a bank for personal loans. The good news is, you can find lots of Singaporean banks and their details online.

Beatrice Lipson

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