If you are going to survey the lending industry, you can find a lot of lenders in Singapore today, and when it comes to their loan types, each one of them also has different loans such as a personal loan, salary loan, car loan and mortgage loan.
How to choose the right lender for your loan?
Each lender has their list of loans that they offer
borrowers that are why you can’t just approach a lender and ask them the type
of loan they offer; you should also check beforehand they that type of loan
before your loan application.
An example of this is the salary loan. When applying for a salary loan, it is only composed of a small amount of money; probably an equivalent of your one to two months’ salary that is why banks don’t have this type of loan and you should approach a licensed money lender instead.
Aside from this given situation, there are also some
other situations where a specific lender is the best choice for you to get if
you wanted to apply for a loan like the following:
● Personal loan
If you need a personal loan and you have a good credit
history, you should apply first in the banks. If you are a good loan payer,
banks can easily approve your loan; hence it would be easier for you to apply
first in the banks when it comes to personal loans.
Another benefit with bank loans also is that a bank has a
lower interest rate compared to licensed moneylenders and loan sharks in the
country. The interest rate is one of the problems borrowers have when applying
for a loan thus looking for a lender with a lower interest rate is good to save
Bank loans take time to be approved that could take five
to seven working days therefore if you need funds right away, you should take
the banks out of your list. The best choice you have for a personal loan is the
licensed moneylenders. Moneylenders don’t have many hassles, and they approve
your loan immediately if you can only give them the financial documents they
If what you are looking for is a debt consolidation loan,
you can either visit a bank or a credit card company because a moneylender can
only let borrowers loan a small amount of money thus you can’t get a loan which
requires a big amount of money like the debt consolidation loan in moneylenders.
Are you ready for a loan?
Most first time borrowers usually have hesitations
whether they are going to apply for a loan. Over the years, people thought that
having a loan would place the borrower in a worse situation but what they
didn’t know is that loans are good if you can only manage it properly.
So, how can you know if you are ready for a loan and how
will you choose where you can have your first loan? There are ways for you to
check yourself whether you are now ready for a loan.
● Determine if
you can afford the repayments
Whatever loan you are going to get, you should make sure
that you can afford the repayments. The most encountered problems by borrowers
why they have outstanding loans that they are having a hard time paying because
of the high interest is when they aren’t able to manage the repayments well.
Most loans would take months or years to be fully paid
hence, checking your affordability is essential when you will apply for any
loan; this way, you won’t encounter the same problem like other borrowers which
will be seen on your credit history.
● You can
maximize the funds
Getting a loan is not comfortable where you have to pay
that amount and the interest for the next years; that is why before getting a
loan, you must have plans already where are you going to spend the loan.
There are many types of loans such as a mortgage loan,
car loan, personal loan and many more so whatever loan you have applied,
maximize the use of your loan and only use it to things you need.
● Check the repayment flexibility
One thing that you should check before applying for a
loan is whether you can handle the repayment schedule so that if you can see
that you will have a hard time with the repayment terms and your monthly
expenses are already at stake, you can think ahead of time what move you are
going to do.
There are also some other lenders who would let you
choose your repayment terms such as having your repayment every week, every two
weeks or every month. Through these repayment terms, you can easily adjust your
expenses and other debts, so you can manage and pay all of them with lesser