A Complete Guide to The Types of Loans Available in Singapore And Their Benefits

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A Complete Guide to The Types of Loans Available in Singapore And Their Benefits

When it comes to borrowing money in Singapore, there are various types of loans at your discretion. However, it is important to choose the correct loan based on the purpose of loan and your requirements. It can be challenging to choose the right loan for you if you are unaware of their uses. You can also go with a moneylender in Singapore if you are in need of immediate cash and can’t wait for the loan to be approved. There are several licensed lenders who are in the business of lending money at flexible terms of repayment but at a higher rate of interest as compared to the banks. Here’s a look at the various types of loans in Singapore and their benefits: 1. Personal loan The personal loan in Singapore is one of the most popular loans which can be obtained from either banks or money lenders. The personal loan is taken for a smaller amount as compared to the mortgage loans and people use it for paying a variety of things like car, electronics, and others. Benefits One can borrow a sum which amounts up to 4 months of the monthly income. It has fixed interest rates. It has options for early repayment. The repayment instalments are same each month. 2. Payday loan The payday loan in Singapore allows you to borrow a small sum of money at higher interest rates which needs to be paid back within the 30 days or on the day of your next pay check. Benefits: It is convenient and flexible to repay. It has fixed interest rates. It is easy to qualify for and one can get fast approval. 3. Foreigner loan The foreigner loan is the type of loans for foreigners who have a valid work permit or employment pass in Singapore. You may need to provide some security as a borrower by putting some collateral against the loan amount. Benefits: The loan is subject to a lot of credit and extensive background check. Money can be received quickly. It has lower rate of interest. Requires minimum documents for approval. 4. Business loan In Singapore, business loans are the funds given to various types of businesses by an organization, individual, or bank. It is supposed to be paid back by a specific date at a specific rate of interest. The qualification of the borrower, interest rate, repayment date and the loan amount are all variable. Benefits: Business loans solve cash flow issues. Quick approval as compared to the banks. Various loan payment options. The business loans are accessible and convenient. 5. Cash loan A cash loan in Singapore is one of the fastest ways of paying accidental expenses such as hospital bills or some other financial emergency. These cash loans are offered at a higher rate of interest. Benefits: Your credit score and personal information remains confidential. Saves a lot of time as many online lending institutions are open for seven days a week. Almost anyone is eligible for the loan. Explore the web for more information on tips to choose various types of loans in Singapore. You must read the online moneylender reviews to know about the person / organisation from which you are taking the loan.