10 Reasons Why Singaporeans Take Out Personal Loan From Licensed Money Lender
There are many reasons why Singaporeans get personal loans from licensed moneylenders which are different from wanting extra funds. The loan tool can be used for improving your life, provided that you utilize the money as intended.
Here is a look at the various reasons why people get personal loans, along with ideas on ways to put any extra cash to good and profitable use.
#10 Avoid high-interest credit card advances with exorbitant charges
It could be that you urgently need some money, but getting cash advances on your card could also attract rather high interests. This can end up only being a big financial pain to handle, so consider getting the personal loan that has lower interests.
Also, factor in a 6% service fee every time you make a withdrawal of a certain amount. However, personal loans will not have an upfront fee charged each time you get it.
#9 Help friends or family who need help
When you would like to assist your friends and family, a way to raise additional cash is by obtaining a loan. Think of getting a type of loan like payday loans, personal loans, that let you make reasonable and manageable repayments.
For example, $100 – $200 monthly repayment is reasonable for repayment when your intent is to aid the financial needs of your loved ones.
Ultimately, getting the personal loan with lower interests and flexible payment choices will work in your favor. It is a better option than getting a large sum from your savings, specifically when it is possible that the loved one will not make to pay you back in the future.
#8 Debt Consolidation
When you are worried about being unable to repay multiple card debts you hold, then you could repay them at once by obtaining personal loans. Doing so, will save you from huge interests from several cards and get a lower interest on the personal loan that has a one repayment schedule.
When you would like to enjoy the suitability of settling the bills, you could consider bank transfers. It means that it may be easy to transfer debt from a single card to a few others. But, if you prefer another option, you could get personal loans then repay all the debts.
#7 For Covering Wedding Expenses
Possibly all the wedding expenses will not be fully covered by the personal loan. However, you at least can reduce the cost rather than paying for everything using credit cards or cash. Let us say you wish to purchase a wedding ring, getting personal loans is more practical. Then you only pay an annual interest of 6-8 %.
This is much cheaper compared to card interests of 24% annually. Several personal loan promotions on personal loans could even be 0% interest for a period of 3 – 6 months.
#6 Have Extra Money For Renovation Expenses
When planning to renovate your home, you could get a special loan aimed for this. But then again, there is the likelihood that you could exhaust the money allotted for renovation.
As the renovation loan limit is $50,000, it is possible you might need more cash should unpredictable things happen. Thus, the personal loan can help cover your expenses. But avoid going beyond your set renovations budget. Come up with a sensible budget and follow it as you possibly can.
#5 Have a Substantial Amount After Large Purchases
Maybe you have put away a substantial amount for a long-awaited journey abroad. But rather than pay for it at a go – though you are aware you can afford it – you could choose the practical option. It could mean getting personal loans that can keep you from being rather low on funding during the period you are on vacation.
When you want, you could consider obtaining the personal loan of around $10,000 then just repay the loan amount in installments. In so doing, you will be sure that you still have some money in your account, and in the end, it will be possible that you will enjoy your time while on holiday.
#4 For Settling Late Payments
At times you might be low on funds, yet you have bills to take care of like your rental fee and utility bill. When you are low on cash, then a good way to manage these repayments is by obtaining the personal loan with a legal moneylender. In so doing, you will avoid having to borrow cash from friends and family or simply default on your payments and incur some massive interests or even other inopportune situations that might arise when you fail to settle your bills punctually.
#3 Avoid Filing For Insurance Claims
At times you could qualify to get bonuses on the insurance policy when you make any claims for a specific period. Moratorium insurance can be another possibility, that is effective whenever you avoid filing for claims for about 5 years. For this reason getting personal loans might seem a rather attractive choice to get such rewards. Getting discounts or bonuses on your policy could be a good idea and not need to stress about getting broke while at it.
#2 Acquire The Money You Need Without Lending From Friends And Family
It may be rather uncomfortable and awkward to borrow from friends and family. You also face the risk of not getting the money you request when money is not enough to offer you. For this reason, you will need to stop worrying and just get the personal loan to address your urgent needs rather than approach your family for some money.
#1 Make important, urgent and time-sensitive purchases
It could be you have for a while been looking at an interesting item in the stores, still, you are low on cash – soon you realize that it’s on sale! When you wish to take advantage of this chance to give a much lower fee on the item, yet you the cash you have is not enough. You can then always utilize the personal loan facility for it. It has lower interests compared to a credit card, and you can buy the item at once and not experience any tough effects on your funds.