The Ultimate Guide to Comparing Personal Loans in Singapore


Personal loans are a great financial tool that can offer you that extra cash you need. You can use them for educational costs, expected or unexpected medical expenses, you can use them for life celebrations or for debt consolidation. These are the four main types of personal loans in Singapore. In this article we are going to do a deep dive into these loans, see exactly what conditions they require and how to get them.

What is This Loan?

Personal loans are some of the most accessible types of loans you can get in Singapore. Most of the time, these loans are unsecured, meaning that they do not require collateral, which makes them great for students, newlyweds or any other individuals who don’t want to risk their car or home for a loan.

Unlike mortgages or auto loans, which stipulate that they can be used for specific purposes, these other types of loans can be used for various reasons, such as celebrations, studies, anniversaries, medical emergencies or credit card consolidation.

How to Get a Loan

The process is slightly different from moneylender to moneylender, but it is similar in many ways. Here is what to expect from the process:

Step 1: it all starts with an application form. Depending on the moneylender you choose, you might be able to complete the application form 100% online. Please keep in mind that, even if the application form is online, if the submitted request is approved, you will need to sign the papers face-to-face, because that is what the National Government legally requires from licensed moneylenders. If a moneylender does not require your physical presence to sign the paper, there is a possibility that they are a scam and should not be trusted. Always check the licensed list of moneylenders before contacting any moneylender. You can find the list, as well as other guidelines, on the webpage of the Ministry of Law.

Step 2: this step involves the specialists, who are reviewing your documentation. After you send all of the required documents, it is now up to the moneylenders to analyze your portfolio and determine whether you qualify for the loan or not. All you have to do is make sure that you completed the documentation without any errors and that you checked the eligibility criteria beforehand. If the documents you turn in contain typos or if you don’t qualify for the loan (if you’re under 20 and the age requirement is 21, for example), then your application will most likely be rejected.

Step 3: if the application is approved, then all you have to do is visit the office and sign the papers. You will be able to get your money the very same day, either cast at the counter or via a bank transfer. If your application has been rejected, the best thing you can do is carefully read the rejection letter and contact the moneylender to ask what can you do in the future to improve your chances of success.


Comparing Personal Loans in Singapore

Let’s now get into comparing personal loans in Singapore. As stated earlier, there are four main types of personal loans in Singapore, all determined by the main need they address. These are:

Health Emergencies: medical expenses often come overnight and they are usually time-bound. Unlike studies, celebrations or other uses for these loans, health emergencies cannot be postponed. The approval times for these types of loans can take up to 24 hours, which makes them extremely useful in managing medical emergencies, which usually require cash money fast.

Life Celebrations: another purpose of these loans is to help you enjoy your life. Oftentimes people refrain from celebrating the happy moments in life due to monetary constraints. These loans help you celebrate the moments that should be celebrated, such as anniversaries, weddings, births or retirement parties. Do not let financial issues keep you away from living and enjoying life to the maximum.

Educational Needs: you can postpone your education, but only to a certain extent. There will come a time when even if you want to go back to studies, it might be impossible. If you don’t want to postpone or leave this aspect for later in life, you can always make it happen with the help of these instant loans.

Consolidating Debt: one of the most common ways people use these loans is for debt consolidation. These types of loans usually have lower interest rates and, since they are unsecured  (meaning that they don’t require collateral), consolidating your debt with their help can be a very smart financial decision. Ask a financial representative from the money lending institution about the benefits of debt consolidation.

How to Choose the Right Moneylender

Comparing personal loans can be confusing at first, especially since every moneylender out there uses different processes and particularities. However, here is a checklist you can look into to make sure you’re not getting scammed and that you’re maximizing your chances of having a pleasant experience:

They have a good reputation. You can check this by entering their website and looking for reviews, recommendations and awards. These are often displayed on their home pages.

They offer clear explanations. Please keep in mind that moneylenders are legally obliged to explain to you the contract in a manner that you can fully understand. If you're unsure or confused about what you're signing, you can ask them to explain the contract to you again.

Make sure they're professionals. It is important that the people you’re talking to are experts in this field, have specific training in this industry and follow the guidelines imposed by the law.

Conclusion

The industry of loans in Singapore is a very dynamic one and comparing personal loans can be a challenging task. If you have certain questions, the best course of action you can take is contact a moneylender specialist and share all of your loan concerns with them.

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