So you’re seeking a personal loan! Perhaps, you need instant money to tide for a short time. Maybe, you run short of funds for some purpose. No matter the reason, a personal loan could come in handy during such situations. However, picking the right deal is the key. Here’s what to look for before getting a personal loan in Singapore.
Things to consider when getting a personal loan
Many individuals don’t do any legwork when taking a loan. They don’t assess the options in light of their needs. Sadly, most of them repent on choosing the wrong deal. As a prudent individual, you may want to keep off such scenarios. You need a loan that will align with your requirements without pinching your finances.
Your credit history
Most loan-seekers hardly pay attention to their credit history. However, your credit score directly impacts your loan cost. If you’re a poor score, you’ll be denied loans. Even if you manage to get a deal, it’ll be costly.
To avoid such scenes, obtain your credit report from top rating agencies. Find out mistakes in the report and bring them to the notice of the agencies. Once the mistakes are rectified, take some steps to improve your score. Pay off your utility bills on time. Over time, your score will improve and that can land you a much better deal.
Fees and charges
You might have seen advertisements such as 0 percent interest rates on personal loans. Do you think that banks and private lenders offer loans free of cost? No way! They’ll recover the cost in some way or the other. For instance, some lenders may provide you a personal loan with 0 percent interest for the first year. However, they’ll recoup the interest in other forms.
Processing fees and initial charges are where most loan-seekers get entrapped. The initial processing fees and charges amount to 2 to 3 percent of the loan. Make sure that the processing fees and related charges are less than 1 percent. Other charges to look out for include late payment fees, a change of tenor, and an early redemption fee.
Interest rates
Of course, you’re on the market to bag the most affordable deal. However, banks and lenders in Singapore play their tricks to offer a high-interest deal. Here, you should be more attentive about the effective interest rate and the nominal rate. You’ll find that the latter is lower than the former.
Always use the effective rate when comparing offers from banks and lenders as it considers the application fees and compounding periods to present a better gauge. Also, pay attention to the flat annual fee.
Compare and shop
The more lenders and banks you explore, the better the chances of landing a low-cost deal will be. So, obtain detailed quotes from multiple lenders, and review their charges, interest, terms of payment, and other points. Finally, settle with a reliable loan provider such as https://maxcredit.sg/ that offers a low-interest personal loan with lenient repayment terms.
Bottom line
A personal loan could be life-saving in most situations. However, choosing the best deal is paramount. Just follow the above tricks on what to look for before getting a personal loan in Singapore. Your little bit of diligence and legwork will pay off in terms of a low-interest deal with favorable payment terms.
To know more about Max Credit services, visit us at https://maxcredit.sg/services/payday-loan/.
