People are running along with the modern world. So there are a lot of modern improvements in their basic needs. To satisfy their needs and their family needs they are all in need of money. Though it might sound simple There are some great challenges involved in it. Singapore is an expensive city, and sometimes it is impossible to manage their expenses without any other assistance.
So the people are searching for money lender Singapore. Singapore is engaged with so many financial services of banking and money lenders. There are more than 150 licensed money lenders currently available in Singapore. They are providing the needed money as per your wishes. There are so many types of personal loans available in the economy market. Based on your needs and wealth you can approach the money lenders with your loan plan. If you want to know about the types of personal loans that are offered by the money lenders, then you have to stay on this page and read the following article.
How to decide the type of personal loan?
Before you are going for the money lenders for help with your loan, you have to evaluate your financial status. And you have to find the knowledge on the loan type and the formalities. If you are going to deal with the emergency or minor crises then you can prefer personal loans. In Singapore, the loan amount is decided based on the annual income of the person.
Once you are done with the loan selection. Then you have to look for repayment methods. Money lender Singaporeis offering both types of repayment methods, either by fixed repayment terms or the variable repayment terms. So you have to figure out what type of replacement terms will suit you. Then the applying process is reported by the Credit Bureau of Singapore (CBS).
Types of personal loan offered by the money lender
There are so many types of personal loans that are offered by money lenders. As the loan amount is depending on the annual income, so based on your capability you can select the type of personal loan.
Unsecured personal loan
This is one type of personal loan. This loan is mostly applied to buying a new home or car. The lenders will charge the loan applicants slightly higher than the annual percentage rates. The loan approval and the amount you receive on this loan plan are based on the credit score. The money lenders will consider the credit score of the individual before sanctioning the loan amount. Normally these types of loan are having the rates between 5 to 36 percent and the repayment period will be one to seven years.
Secured loan plans
This is one type of personal loan that is offered by money lenders. These loans have low rates than the unsecured personal loans; this is because the buyers are secured by their house or by their cars or personal savings. If the buyer is failed from paying the loan amount back then the lenders can cease their secured products. So this type of loan has less risk involved in the lender’s aspects.
Most of the personal loans are fixed-rate loans. The fixed-rate loans mean throughout the loan duration, the rate and monthly payments are fixed. This is also called as installments. Fixed-rate loans are avoiding the risks of secured products. Since it is a monthly payment process, you will not face any difficult challenges. So the peoples are going towards these fixed-rate personal loan types.
These variable rate loans are tied to a benchmark rate set by the banks and the money lenders. Based on the benchmark rate changes, the rate of the loan, the monthly payment of the loan and the total interest costs may rise or fall. The main advantage is that the variable rate loans have lower APRs than the fixed loan rate. This variable rate loan is suitable if the loan carries a shorter repayment term. The variable rate loan can able to limit how much rate can be changed in a specific period in the life of the loan period.
Debt consolidation loans
In this type of personal loan, the buyer has to pay multiple debts in a single new loan. This personal loan is having lower APRs than the rates of the existing debts. These lower APRs will help you to save your interest amount. This consolidating debt loan, it will help you to simplify your debt payments and also combining all debts into a single payment.
In this type of loan, the borrowers should not have any kind of credit history. The co-sign loan the co-signer promises that they will repay the borrowed money if the buyer fails to repay the money.
Though there are several types of money lenders are available in Singapore. One such lender is crawfort Singapore who is offering great service in the financial and banking industry. You can make use of these lenders to fulfill your dreams and satisfy your family needs.