With so many personal loans offered in Singapore from banks and private lenders, it might seem so hard to choose the right one for your needs. Moreover, there are various things that you need to consider before taking up a personal loan. First, you must ask yourself if there is really a need to apply. And, if there’s a need for urgent cash, such as for your unexpected medical bills, you must consider four important factors.
One of these factors is interest rates which affect the total cost you’ll have to pay for the loan. The higher the interest rate, the higher the total cost that you need to repay. So, it is essential to shop around for the best rate before applying. At Crawfort, we offer an interest rate starting from 1.8% per annum.
When taking up a personal loan, you have to ensure that you have the ability to repay the loan. The total cost of the personal loan includes the principal amount, the interest, and any administrative fees. Be sure to calculate the interest payable beforehand to work out the total costs of borrowing. Also, remember that each late repayment will incur additional late fees. If you’re planning to borrow from a licensed moneylender, make sure that you have checked that the late fee must not exceed S$60 and 4% per month for late interest.
Another important factor you must take into consideration is the loan tenure. It refers to the amount of time you are given to repay a personal loan. Your chosen loan tenure will affect the instalment amount, interest, and total costs. So, make sure that you can comfortably meet your chosen loan tenure before taking the loan. Also, remember that the frequency of repayment depends on the terms of your loan contract. At Crawfort, you may choose a weekly repayment plan, a biweekly repayment plan, or a monthly repayment plan.
This might seem obvious, but you need to match the lender’s eligibility criteria in order to take up a personal loan. Among the common criteria to qualify for a personal loan in Singapore is that you must be at least 21 years old. Also, most banks require you to have an annual income of at least S$30,000. If you can’t meet that annual income, don’t worry, there are licensed moneylenders, like Crawfort, that have less stringent criteria.