What Are The Personal Loan Requirements In Singapore?
Personal loans have been a suitable way to borrow funds from a licensed money lender Singapore interest rate and clear all your dues. Many individuals are unaware of the different types of personal loans available.
They can go through the types mentioned here. That way, it would be easier for them to pay off expenses and bills while residing in the most expensive city – Singapore.
Well, people can go through this content to find all the details of the types of personal loans and the requirements to fulfil to get one.
- Personal Line Of Credit
This loan permits individuals to withdraw funds anytime from the account. The Personal Line Of Credit is useful when there is an urgent need for funds. They can withdraw these funds instantly and can be withdrawn twice the monthly income. It adds an annual fee ranging from S$60 to S$120 based on where people borrow.
The interest will be charged depending on how they have withdrawn the money, like through internet banking, ATM, or physical bank branch. The rate of interest can vary from 18 to 22%, and after clearing the full amount, the bank will stop charging the interest.
- Personal Instalment Loan
A loan or a personal instalment loan is an amount you can borrow from moneylenders or financial institutions based in Singapore.
This common type of financial help is popular in the industry. It comes in different names based on licensed moneylenders or financial institutions. Individuals must repay the amount in fixed instalments for up to six months, including a processing fee that they must pay once.
The fee can vary from 0% to 10% of the principal sum. But the interest rates might vary among licensed financial institutions and banks. This loan amount is useful in clearing outstanding debts of several channels, medical emergencies, etc.
- Balance Transfer
Balance Transfer is one of the personal loans in Singapore that allows you to transfer the existing money from several credit card debts at a lower credit line or interest rate. It is often used to lower the interest rate of payments and consolidate several debts in a single account.
The repayment period varies from bank to bank and can be 12 months, 6 months, 18 months, 3 months, etc. You can clear your credit card bills in a month only once through this loan amount.
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- Debt Consolidation Plan
This debt restricting program will let you consolidate all the unsecured credit facilities into one from several financial institutions at a lower rate of interest. This plan includes personal and credit card loans.
If you ask about the difference between debt consolidation and a balance transfer loan, it is the debt consolidation loan that can be used when your debt exceeds 12 times the monthly income. In this instance, this scheme helps in managing all the debts better.
A few types of loans excluded from this scheme are renovation loans, joint accounts, medical loans, education loans, and credit facilities for business purposes. Well, this is the answer how do I combine all debts into one payment?
Requirements Of Personal Loan To Be Fulfilled By Individuals
The requirements might vary depending on the loan you plan to take according to your requirement. The common pointers that everyone has to keep in mind are listed here.
With all these details, borrowers can apply for a personal loan from the licensed moneylenders.
- Deciding On The Loan Type
The most important parameter is evaluating the finances to determine the type of loan suitable for you.
First of all, you need to find out whether you are dealing with an emergency. Depending on the requirement, you can decide on the type of loan.
- Check On The Eligibility Criteria
Find out if you are eligible for the type of loan, as the maximum loan amount depends on the annual income.
For all information regarding personal loans, aspirants can speak to licensed moneylenders. They have all the necessary details, which will help get the amount.
- Checking The Credit Report
Another requirement of getting a personal loan is getting a credit rating from MLCB and CBS. Different moneylending institutions offer such loans, but you should go with a licensed one.
- Preparing The Necessary Documents
After you are clear about the loan amount, it’s time to start collecting the documents to apply. It includes NRIC, proof of employment and income, residence details, past CPF statements, employment pass, etc.
In The End
Every licensed moneylender operating in Singapore has to adhere to the rules specified by MinLaw.
It includes late fees, a limit on interest, and other costs borrowers must pay. Individuals can apply for a personal loan from moneylenders with all the necessary details.
Also, borrowers must keep all the necessary details in mind to get their loan sanctioned.
