Singapore is considered as one of the richest countries in Asia and one of the fastest growing economies in the world. It is also considered a very popular financial and business center, making it the home to some of the world’s richest people. You would rarely get to see people strapped for cash in the country; but, how are they doing it?
When people are strapped for cash in Singapore, they go to a bank or a moneylender to seek out a personal loan. Banks and moneylenders are open in approving loans for people who need them. Personal loans are the most common loans requested by Singaporeans since it helps them pay their car bills, house renovations, and other immediate necessities.
However, some people would say that people should not get a personal loan because it would just be difficult to pay or it would just cause you to spend more. But, when you really are strapped for cash, personal loans are an option you cannot ignore.
Why exactly then is it very popular in Singapore even if people warn against its use? Here are some of the reasons why getting a personal loan is good:
When one applies for other loans like business loans or mortgage loans, you would be required to submit several documents to prove to the bank or moneylender as to where you will use the money. You would even need to make several trips to the bank to prove you are the one seeking the loan and explain it personally to the bank owners.
However, for personal loans, you do not have to explain to the bank or moneylender where you will use the money. Simply apply for it and get the money with no questions asked.
Nowadays, you don’t even have to go to the bank or moneylender to apply for your personal loan. Simply go online and check your preferred moneylender or bank’s website and apply through there. If you have any questions, you can easily chat with the lender online or send an e-mail.
No Collateral Charges
Some loans require borrowers a collateral or a guarantee before they are allowed to get a loan. If you are unable to pay for your borrowed money, the collateral will be forfeited to the bank or moneylender unless you pay your dues.
With personal loans, you can apply without a collateral so you do not need to risk your house, car or prized possession to get money. You simply have to have a regular paying job which can help you pay your dues monthly, you can avail the loan without problems.
For those who do not want to get loans, they may consider borrowing money from their family or friends or use their credit cards to pay off their bills. However, credit cards come with high-interest fees which would balloon over if you do not pay on time. On the other hand, borrowing for family and friends can be costly because they may exact a repayment you may find difficult to do in the future.
By requesting a personal loan, you would only have to contend with a low-interest rate every month. Since it has a lower interest rate, you can use the personal loan to pay off the debts you have which have higher interests.
When you are applying for credit cards and other loans, it would normally take you weeks or months before it is approved. The bank or moneylender would need to background check your status, your finances and even ask those who know you if you can pay your loans or credit cards.
If you have a bad credit rating, the processing of your loan application may take a while until you can prove you can pay regularly. If you asked your family or friends to lend you money, you may have to wait for a while before you can get the money you borrowed.
However, if you applied for a personal loan, the amount of time you have to wait to get it would only last for a few days. Sometimes, you may even get it on the spot or within 24 hours. If you don’t have a good credit rating, it would still not affect the speed of your loan approval since some lenders have personal loans which do not require the borrower to show their credit rating or history.
If you have an emergency situation or expense, getting a personal loan would surely be a big help.
Flexible payment terms
When paying the bank, moneylender or the people you borrowed some money, you will have to contend with paying it in full in a short period of time. If you are unable to do so, you will have to pay extra charges because of their interest rates. One late payment and you would be sure your collateral will be taken as repayment.
However, if you want a relaxed payment term or a payment term that would match with your current capacity, personal loans are the best option. When you apply, you can speak to the lender regarding their various payment terms and even customize it to fit your income. You also do not have to worry about paying it immediately because payments for personal loans can span up to 5 years.
You do need to speak to your moneylender or the bank if you will pay them in advance because you might have to pay extra for paying your dues in advance.
You don’t have to give up all your prized possessions just to be able to afford to stay in Singapore since there are means to get around your money troubles. With a personal loan, you will be able to afford the expensive living standards in Singapore and still do the things you want without worries.
So, don’t fear personal loans when you have money troubles and don’t let it get in the way of your dreams!