Are you looking for a personal loan in Singapore? The flexibility of using personal loan amount and not requiring collateral makes it the preferred type of credit for many Singaporeans. However, the long list of lenders in Singapore can make selecting the best personal loan challenging because they have different terms and conditions. So, how do you pick the right personal loan? How do you narrow down to the lender with quick approval rates?
This post is prepared for personal loan comparison Singapore, and is aimed at helping you identify the best option. We will also tell you why Lendela is the ultimate loan comparison site when looking for quick and best loan in Singapore.
How Does a Personal Loan Work?
Before you can start comparing personal loans in Singapore, the first step is to understand how they work. A personal loan is a type of credit where a borrower receives a one-time payment of cash and is expected to repay it together with interest in instalments. The amount payable over the years (loan tenure) also includes other applicable charges, such as processing fees.
Unlike a car loan or mortgage, which is always attached to an asset, the personal loan is unsecured. Therefore, it does not come with a risk of losing personal assets if you are unable to repay. When taking a personal loan, most lenders will look at your repayment ability and credit score to make the decision for approval. It can be a wedding loan or a car loan.
Personal Loan Comparison Singapore: Things to Consider
Although most people prefer it to other forms of credit, it is important to be extra careful to ensure you only take what you can repay comfortably within the selected years. This is why you should understand the following terms and considerations for personal loans and go for the one with best conditions.
Interest Rate
The interest rate of a personal loan is the cost of the credit. One of your goals of personal loan comparison Singapore should be identifying the one with the minimum interest rate. When talking about the interest rates, they can be broken down into two; the advertised interest rate and the effective interest rate.
The advertised interest rate is what most lenders will tell you about, and it can be as low as 1.5%. This interest is always calculated on the basis of the borrowed principal, implying that it does not give the correct picture of the cost of the loan. This is why you should go for the effective interest rate and review personal ability to repay depending on monthly income. In addition to factoring in the advertised interest rate, the effective interest rate of a personal loan also includes all other applicable charges, such as the processing fee.
Ability to Refinance the Loan
When you decide to apply for a personal loan, your mind should always be fixed on getting the cost of credit lower. If you applied for a personal loan when the credit score was poor, but it has now improved significantly, the best lender is the one that allows for refinancing. Refinancing involves re-looking at the terms and conditions of the loan with the view of lowering the interest rates within the remaining tenure.
Administration Fees and Other Fees on The Loan
For most people, the primary focus when applying for a loan is the interest rate and the tenure in years/ months. However, you should also be on the lookout for other charges. For example, your personal loan comparison Singapore should also put emphasis on processing fees and early repayment charges.
In Singapore, the administration fee ranges from 1% to 3%, and it will be a good idea to look for the lender with the cheapest rates. If you get to some point and want to clear the loan as quickly as possible before the expiry of the tenure, the charges for early repayment should also be low.
Ability to Renegotiate the Loan
Every borrower signs a loan agreement targeting to repay in line with the agreement signed with the lender. However, it is a good idea to be prepared for the worst. Think of it this way – what would happen if you were unable to repay the loan?
Such a scenario can be brought about by a loss of monthly income or medical problem, among other issues. As you compare the loan, consider only signing the loan agreement that gives room for renegotiation in the event of the inevitable that makes paying the loan challenging.
Lendela: The Best Personal Loan Comparison Singapore
As we have demonstrated in this post, personal loan comparison Singapore is very important if you want to get the best loans. However, comparing the lenders and loans can be a challenging task. Most lenders in Singapore have their sets of conditions that borrowers must meet for loan approval, including different interest rates and varying application procedures. If you want to evaluate, say, 20 lenders including banks and online licensed financial institutions, it can be pretty challenging.
Trying to do a personal loan comparison Singapore on your own can be equally risky because of the danger of falling into the hands of loan sharks. These unlicensed lenders are known for charging very high interest rates and also using harassing strategies to try and recover money from borrowers.
To make it easy to compare lenders and avoid loan sharks, the best option is to use loan comparison sites, and the only true loan comparison platform in Singapore is Lendela.
Lendela works with a panel of banks and licensed financial institutions, meaning that you are sure of evading loan sharks completely. They also use loan matching algorithms, which help to identify the lenders who are willing to approve applications with a profile such as yours. Here are the main steps involved in the application of a personal loan in Singapore.
Visit Lendela website to apply for a personal loan (this should take a very short moment).
Receive offers from lenders, such as banks and financial institutions, that work with Lendela (these are pre-approved offers with tailored conditions for the loans).
Review the offers and select the preferred one. This is your time to check different aspects of the loan, from minimum interest rates to loan terms depending on your monthly income. Pick the preferred one, preferably the one with low monthly rates, and Lendela will help you to book an appointment with the lender for the disbursement.
Sign the loan agreement with the lender and the money is released to your account.
Looking for a quick approval?
Looking to apply for a personal loan? It is a form of credit where the applicant makes an application to a lender, receives cash in a ransom, and is required to repay the principal amount plus the interest by the end of the loan tenure. To identify the best personal loan, make sure to compare the lenders and find the one that comes with the best conditions. So, how do you do this?
Start by establishing how the personal loan works and then compare different lenders and their conditions. The best lender should have a low interest rate – both advertised interest rates and effective interest rates (EIR). Also, it is important to compare the fees charged by the lender. How much does the lender charge in administration fees? Here, you might want to check the rates for banks to those of online licensed financial institutions.
For you to get quick approval, loan comparison sites like Lendela will come in handy. Lendela makes the loan application process quick and easy since you only submit a single application that is forwarded to different lenders. Then, they source pre-approved offers based on your personal conditions.
You then compare the offers to identify the lender with the lowest interest rate, and Lendela will help you book an appointment for you to sign the loan agreement with the lender. Why take a long time to apply for a loan when Lendela can help you to simplify the process and get quicker approval?
Before you sign the personal loan, it is prudent to compare different parameters to ensure that you are only getting the best possible terms. Particularly, you should target identifying the personal loan that comes with minimum interest rates and no hidden charges. This is why you should work with Lendela when looking for the right personal loan in Singapore. Do not just apply and take up any personal loan: Go for the best.
