Recently, licensed moneylenders have increasingly become popular and in high demand. Even with this, it’s a good idea for you to find out whether payday loan or personal loan is right for you. Be sure you understand what a personal loan is as well as what the necessities are for you to qualify for one. You must be thinking about many when you are in a hurry to get fast cash flow and maybe considering getting a payday loan.
Therefore, let’s look at a personal loan, how you need to go about the application, and the requirements needed for you to get approval once you have applied for a loan. One characteristic of a personal loan is that their monthly repayments are flexible.
The amount you are requesting and getting approval will depend on your monthly income, as well as your credit rating and other factors. This will certainly be different for every one of the applicants depending on the capability to make repayments. With this in mind, it’s also important to know who should apply as well as when to apply.
Is This A Good Idea
When you are certain that you are an excellent candidate for the personal loan, then you need to meet the condition necessary such as meeting the minimum income requirement, thus you need to go ahead and send in your application.
However, before you get right to it, you need to some time to think about the following additional options to help you make the right choice when you need a loan.
When To Consider A Personal Loan Over Other Loans
While you read this at this moment, it is possible that you might be facing some financial crunch and are contemplating whether it’s appropriate to pay a licensed money lender a visit. Before doing that, make sure you first confirm whether the money lenders you are considering to work with are authorized and legalized by Singaporean Law Ministry (MLAW). A few loan sharks might pretend and misuse only a name to get to you. Always be cautious when choosing a lender.
Before taking a loan take time to think about it. Consider whether a personal loan is right for you. Firstly, you need to remember to think of the interest rate. Since you aren’t getting the loan through banks, and you urgently need some quick cash, thus no credit check is done, you will have to pay higher interest amount. Even then, one of the advantages of getting a loan from a moneylender is that their repayment is rather flexible. in addition, you will receive about 90% loan rate of approval when you compare to banks.
Normally the interest rate ranges from 4.5% and beyond. Certainly, it’s different for every moneylender in the market, depending on the amount you would like to take out. Singaporeans often take out personal loans for own usage like for emergency expenses, mechanical issues and even for monthly billing that are need of a quick fix. Or it could be for vacation expenses and your wedding.
Normally when you approach banking institutions, these “personal” reasons might be unacceptable and your chances of getting approval are very low. You might have been waiting in vain and all the waiting wasn’t worth it. You can Imagine doing the entire loan process and have to wait for 2-3 weeks (depending on the banks), only for your loan application to get turned down.
Who Needs To Apply For The Personal Loan And When Is It Ideal For You To Do So
Consolidate Your Debts
You could have some doubts regarding a personal loan. It is possible for you to use this loan facility to reduce your total expenditure should you use the money to settle your other debts. at times the interests might even be lower compared to credit cards.
With this loan type, you will be able to repay the amount you owe within a shorter period. You will also be doing this by making use of smaller amounts from your income thus get lower amounts of interest. that’s why it’s a win-win situation since you wish to repay the money that you owe other creditors.
Paying Off Other Debts
As far as debt consolidation is concerned, when you need to repay other debts that carry a higher interest rate compared to the personal loan you want to take out, it might also be the ideal time to get a loan from a licensed money lender. The benefit is that you will be able to repay your debts within a shorter time and you will also find that you could do this using a smaller loan amount as well. You may be surprised by this smart move to get a loan from the licensed moneylender is better compared to banks.
Keep this in mind that you will be getting a loan to repay other debts that you still need to earn sufficient money to repay your personal loan too. Even though the loan will come with higher interests, the repayment period is negotiable based on your credit rating as well as the relationship you have with your moneylender. Provided that you repay all your debts, the moneylenders are rather lenient.
In the end, a personal loan will be more beneficial in cases where you will get to repay the debt faster, and also instances where you repay the principal amount faster. Additionally when you are able to reduce the total debt amount owed within a shorter time. When its time to choose, it is advisable that you put the above factors into consideration. Please be sure to take the time to consider your financial status, and whether you will be able to repay your loan.
Realize that licensed moneylenders aren’t charitable since thus you will have to repay your debts. These lenders are capable of opening a case against you for nonpayment. This means it will be handled in a legal manner. After all these lenders are nothing like what they are referred to as “loan sharks”.