By People need a personal loan to meet various expenses and they can apply for personal loan in Singapore easily. There are four types of personal loans and people can apply for them through any bank or financial institution. One such institution is MoneyIQ.sg. In this article, we will discuss these personal loans in detail.
Personal Installment Loan
People usually go for this type of personal loan. The loan is known by different names in different banks. The principle of borrowing is the same. A person can borrow a specified sum of money and processing fee has to be paid only once. The debtor is given the time of 60 months to pay back the loan in installments. The amount of monthly installment is equal in each month. The processing fees and interest is calculated and added to the loan.
Processing fees start from $0 and can go up to 3%. In the case of interest for the loan, it varies from one bank to another. The starting of the rate is 3%, which can go above depending upon the amount of the loan. If a person takes a loan during the promotional period, the bank may not take the processing fee but may make changes in the rate of interest.
The amount of loan that a person can borrow depends upon the available credit limit in the personal loan account. It can also depend upon the line of credit account. The maximum amount of loan that a person can apply for personal loan in Singapore is four times his monthly salary. This can also go above but it depends on the annual income and good credit history.
The period of repayment can be 12 to 60 months. People can use this loan when there is a big expenditure that a person needs to meet with. It can be paying bills, school fees, house rent, and many others.
Line of Credit
This type of loan comes with the facility of overdraft. The interest rate is charged only when a person withdraws money. After the approval, the debtor can use various means to draw cash like internet banking, debit card, credit card, etc. The loaner has to pay the interest as soon as he withdraws money. The annual fee of this loan ranges between $60 and $120. The rate of interest lies between 18% and 22%. If there is any promotion offer, the rate of interest can be less. The amount drawn by the people can be two times of their monthly income. It can become more dependent upon the credit facility. There is no fixed tenure for this loan and people can withdraw money any time after paying the interest.
The loan is a better option for having extra cash to meet the expenses, which are unexpected like hospital bills, school fees, etc. An approval process is not needed if a person wants to withdraw cash. People should withdraw the cash only if there is a requirement else they can use their monthly income to meet the expenses.
Funds Transfer or Balance Transfer
In this loan, people can use the amount of money available on credit cards. The processing fee is to be paid only once and the interest rate is either low or 0%. This interest rate can be enjoyed for 3 to 12 months. After the completion of this tenure, the loaner can repay the total loan at the interest rate, which ranges between 18% and 29%.
People can use one or more credit cards to withdraw money. This loan can be availed if the loan is needed for it in an emergency. The processing fee for this loan ranges between 1% and 5%. Some banks may not take any fee for processing. The minimum loan amount can be $4500 and it can go up to 10 times the monthly salary of the debtor.
The repayment time of the loan can be between 6 to 12 months. This loan can be taken when there is an urgent need for cash. Other types of loans have a high rate of interest comparatively so people can have this loan. Some of these expenses include car repair, hospital bills, and many more.
Debt Consolidation Plan
This is the fourth type of personal loan in which people can take a loan based on schemes approved by the government. This type of loan can be taken if people are unable to handle various unsecured loans like a line of credit. The repayment of the loan can be in the range of one to ten years.
Wrapping Up
These are some of the personal loans which people can avail to meet the emergency expenses. People can pay different types of bills and can also use them in businesses. The rate of interest and processing fees is very low. People need to choose one of these personal loans that can meet their requirements from reliable institutions like MoneyIQ.sg.