Wednesday, 3 September 2014

Make a Personalized Financial Plan with Personal Loan!

Do you need a personal loan? Don’t worry! The bank will come to your place at a convenient time, collect almost no document, will complete all the formalities and you will get the amount in just a matter of two or three days. Sounds incredible! But is it really true?

Before exploring the real truth behind these statements, know what basically personal loan means!

A personal loan is so extensive and widely prevalent in the society that a closer look into it makes people realize that it is everybody’s need. Those who opt for this type of loan see it as a solution to their financial needs. People avail personal loans to meet their personal exigencies; be it medical or engineering or study in abroad expenses of the kids or heavy hospital bills of parents, your house needs renovation or planning a big fat wedding. Everything that could burden you financially can be solved with personal loans.

How Personal Loan is different from other kinds? 

Not everyone, but those who have applied for it, must know about home loan. If you are opting for a home loan, you are restricted to use the amount to either construct or buy a home. The person won’t be allowed to use it for other purpose. The same goes for a car loan. And if you are opting for personal loans, you can spend the amount anywhere. The bank, which will sanction the amount won’t be bothered about where you are spending the amount and in what way. The best part of personal loan is that it does not require any guarantor.   

How can you Avail Personal Loan?

The amount that is sanctioned in personal loan depends upon the salary of person who has applied for it. From as low as S$20,000 & above, one is eligible to get the loan. There is also a provision to take the loan jointly with spouse and in this case, both the incomes would be considered before sanctioning personal loan. Not only salaried persons but self employed people can also avail this opportunity if they pay tax and falls between the age of 25 and 65. Such people will have to proof that they will return the loan amount and how.

There is no one criteria for sanctioning personal loan. Personal loan in Singapore varies from one bank to another and knowing the complete details is necessary in order to avoid future worries. Few banks sanction loan only if they are part of it or they have account in their banks. But it is not the same for every bank.

How Interest Rates are calculated?

Few banks offer interest rates at 16 per cent while few others at less. It keeps on varying but the less interest rate is not enough to take the loan from that particular bank. One needs to understand how the interest rate has been calculated for Personal loan in Singapore. Find out whether the rate is fixed or flexible or depends upon market variations. In the flexible, the interest rate is calculated on the amount left after paying first installment. Annual interest rate is calculated on the left amount paid after first month of installment.

These fluctuating and kind of confusing interest rates should be understood completely. EMIs should be calculated along with calculating the total actual amount that is needed to be paid which should be inclusion of processing fees and penalties, if exist.

To Sum Up!

Personal loan definitely looks appealing but it is necessary to understand its aftereffects too. You will have to pay a constant installment on the monthly basis. So, consider your financial circumstances and your situation and then opt for personal loan.   

2 comments:

  1. Well, this is very interesting post. It is very helpful for the people who are applying for a personal loan for the first time. They can know more about personal loan by reading this post. I agree with you for the things you mentioned in the last paragraph. They should always select a right loan which they can pay easily without making major sacrifices in the monthly budget. Thanks for sharing such useful information with us. For more suggestions, visit http://www.quickcredit.com.sg/loan-services-singapore/personal-loan-in-singapore

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