Singapore offers the convenience of personal loans, with the lowest interest rates possible. Personal loans are different from business loans. Personal loans normally require the signature of the borrower. Personal loans are unsecured loans, because they do not require the borrower to meet any special requirements. However, it is important to note, that there are two types of loans secured and unsecured.
How Lenders Choose their Borrowers
Licensed money lender mainly use the borrower’s credit score to determine whether or not the borrower qualifies for a loan, and if so how much, and at what percentage of interest rate. Repayment periods are determined by the borrower. Applicants with bad credit might be denied, or offered a personal loan with higher interest rates.
How Do Banks Determine the Loan Amount
Banks such as DBS offer cash in the amount of 4 times the borrower’s monthly income, or up to 10 times the monthly, annual salary, provided the borrower met the income threshold. The flat interest rate in most cases is set at 6.99 with a tenures up to five years. Borrowers can get instant cash disbursements at any one of the local branches, if they have or are using a POSB or DBS deposit account.
Borrowers without a Cashline or Credit Card Account can still apply for a personal loans online. Help is available for individuals who need assistance lower than their normal fees. Cashline and credit card customers in Singapore do not need to submit supporting documents with their application.
Some lenders charge penalty fees for late payments, and for early payoffs. Take a look at the fine print, and read through the terms and conditions thoroughly. Although, Singapore payday loans with low interest are a great way to pay off expenses, they are not for everyone.
Where to Obtain a Free Credit Report
Free credit reports are available for applicants who have had their credit application approved or denied. This offer is made available within 30 days from the date of the reference letter.