6 Good Reasons For A Personal Loan
Most Singaporeans are for the idea that getting a personal loan means lifelong trouble. To these individuals, this would mean having money shortage, gambling debts or even not be being able to use money wisely and not having enough savings as well. Even then it may come as a surprise to most that there are several good reasons for you to get a personal loan from a licensed money lender.
Being able to get a personal loan can help you enhance your life, help you get out of financial difficulty and also empower you when you put it to good use. Below are some very good reasons for you to get a personal loan from a licensed moneylender.
Finance Expensive Medical Bill
One major concern for most Singaporeans is their being able to have enough money to pay for healthcare along with medical costs when needed. Even if, there are the subsidized healthcare options by Medishield Life or possibly the private health insurance, there are times you will require ready cash to pay up for this bills first prior to submitting your claims.
Even then, there are several insurance companies that require that you pay co-insurance as well as deductibles before getting your claims. Under such circumstances, a personal loan will come in handy in helping you face the cash shortage.
Finance Your Big-Purchases
It could be that you have recently moved and you need a rather large amount of money to help furnish your home and also buy all the necessary electrical appliances. The amount needed often come in addition to all the funds you will have paid for the new home, either by purchase or in a rental, redecoration as well as any moving fees. Therefore, it is convenient for you to consider getting a personal loan to assist you in financing the purchase of all the home’s furnishings in addition to appliances like stove and washing machine.
Although it’s possible for you to use your credit card, the interests charged are a lot higher compared to those of a personal loan. In addition, having credit card rolling balance on your bills is not advisable since late payment fees plus compounding interests may rapidly send you spiralling into huge debt.
Consolidation Of Your Debts
Given that you have more than one credit card and all have outstanding debts, you may well consider getting a personal loan. This way you will consolidate all the various credit card debt charges into one that is easy to manage instead of having many. The one major advantage of consolidating your debts is that your rates of interest on this personal loan will be much lower. This also means even fewer rates of interest for you and other fees you may have on your current credit cards.
Additionally, you will get to reduce your monthly payments to one that you can concentrate on instead of having to keep figuring out which bill you need to clear first.
Good Resource For Urgent Cash
There are times when you urgently need cash, like when you are faced with retrenchment or in situations when your pay comes late. And at the same time, you want to be able to continue paying your bills for each month together with your mortgage loans. In such situations, a personal loan will be very helpful as a good resource for temporary financial need. However, always make sure you have a repayment plan mapped out and that you are capable of repaying back the loan before taking it up.
One thing you need to remember is that most personal loans issued by banks need a minimum period of 1 year. Therefore, it might not be a good choice when you are seeking a small amount for a short period. This is because you will more likely incur the pre-payment penalty, and be tempted to misuse the “extra cash” from a loan you did not need to start with. Thus, contacting an authorized moneylender near you may be the best solution.
Funding For Your Small Business
A growing number of Singaporeans are currently leaving their full-time employment to establish their own small businesses. Since it’s a small setup, a small amount of capital is needed, of which most banks in Singapore will not regard to be a business loan.
For this reason, a money lender personal loan will be useful in helping you fund the setting up costs and from here you are able to use other revenue to repay the monthly instalments of your loan later.
Top-Up For Renovation Loans
When you are considering a makeover for your HDB flat into your dream home, then a moneylender loan can be useful for you. In recent times, a lot of homeowners prefer to purchase an HDB flat then use the saved up money from the purchase of a condominium to use on renovating for bigger home space.
Whereas doing this will help you realize a roomier home, the fees for renovation can keep increasing to a larger amount than the initial budget. In Singapore, renovation loans are capped under an amount of S$50,000, therefore you will require having extra money to help you top up.
In most cases purchasing a new home will possibly have drained out the entire savings for the home down payments. Therefore getting a personal loan will be the one solution to assist you in covering the difference.
Funding To Service Your Monthly Insurance Premiums
If you find yourself experiencing a temporary financial crunch, servicing your insurance premiums for each month may not be a pressing issue at that moment. However, it is during times when you are strapped for cash that is the best times when you are the most vulnerable, thus you will need insurance cover the most.
Therefore instead of allowing for your insurance premiums to lapse, it will make sense for you to take up a personal loan to help pay for it. This is in place of ending the policy considering premiums will likely become pricier by the time you are able to pay for it again.