Personal loans in Singapore are considered the best alternatives for funding immediate financial emergencies or big-ticket purchases. For example, if you want to buy a car and do not want to use car loans, a personal loan will be a handy option.
Also, it can be a perfect choice for consolidating your high-interest loans. But before appending your signature on that loan agreement, it is very important to start by establishing how much the loan will cost by the time all the years of repayment are done. One of the best ways to get the cost of your loan is using a personal loan calculator in Singapore.
So, how does a personal loan calculator work? What about the benefits of using the calculator? Keep reading to learn more about the personal loan calculator. We will also tell you the simple yet convenient way of applying for a personal.
A Closer Look at a Personal Loan Calculator
A personal loan calculator Singapore is used by a borrower to help him/her determine the cost of the loan. The calculator works out all the parameters of the loan, such as the interest and monthly rate based on the loan tenure and loan amount. Here is a demonstration of how to use the calculator.
On the calculator, you enter the loan amount that you want to borrow (call it principal), plus the loan term in months (call it loan tenure). The personal loan interest rate varies from one bank or financial institution to another, and it will be based on your credit score. After entering above details, the calculator could show you a number of figures, including the following:
This is the amount of cash that you will pay on top of the loan by the end of the loan term. If you have a poor credit score, the amount you will have paid by the end of the loan term will be higher than what another person with an excellent score will pay. This is because you will be charged a higher monthly interest rate since you are considered a high-risk party.
This is the amount of money that you will be required to pay every month for the entire loan term. It is one of the most important things when taking a personal loan because it allows you to factor repayment in the monthly budget. Part of the monthly payment goes to paying the interest and part to the clearing of the principal.
If you select a loan with a term of more years, the monthly rate will be lower compared to credit with a shorter period. However, the overall cost of the loan will be higher than a loan with a shorter term. Therefore, it is advisable to select a term that is convenient, and that does not push the cost of credit too high.
Total amount paid
This is the total amount that you will have paid the lender by the time the loan is cleared. This includes the loan principal plus the interest. However, the amount shown on the calculator does not show the additional fees charged on loan, such as a processing fee.
Special Benefits of Using a Personal Loan Calculator in Singapore
Now that you know how a personal loan calculator Singapore works, we will now list the main benefit to anticipate for using it:
It helps to simplify the process of calculating the monthly interest of the loan you are applying for
You can establish the equated monthly instalments (EMI) and loan tenure in years to determine what aligns well with your income
It helps you to understand your loan eligibility
It comes in handy to help you plan for loan repayment in Singapore
What Happens When You are Unable to Repay a Personal Loan?
Once you have made all the calculations using a personal loan calculator in Singapore, it is important to stick strictly to the agreed repayment schedule. If you fail to repay the loan, it can come with serious ramifications. Here are some of the implications:
It will negatively impact your credit score: With a poor score, most banks (and some financial institutions) in Singapore will consider you a risky party and decline your applications for loans. Even for those who might agree to lend you money, the interest is likely to be very high.
You might be sued: Depending on the loan agreement that you sign when borrowing cash, the borrower might be able to sue you for defaulting. However, this only happens in extreme cases.
Getting referred to loan recovery agencies: To try and recover their cash, some lenders might opt to use loan recovery agencies. Although the agencies do not use harassing tactics, such as those used by loan sharks, they can still be stressful. For example, no one wants to get multiple calls and e-mails asking them to repay the loans. Additional fees might also be added on the loan.
If you find it challenging to repay the loan, the best thing to do is reach out to the bank/lender and renegotiate the loan terms and conditions. For example, if the loan agreement indicated that you should be paying $990 every month, but you are now in a difficult situation where you can only make $890, the lender could be willing to re-look at the agreement. However, renegotiating the agreement is likely to attract a penalty.
Applying for a Personal Loan through Lendela
In Singapore, there are many banks and financial institutions willing to lend you money. While this can be a good thing because of many choices, it can also make picking the one with the best terms and conditions challenging.
For example, if you want to try and make a personal loan application to five lenders, the process of reviewing what they want and making specific applications can take a lot of time. Some put more weight on your income, while others focus on the credit history. However, you can say goodbye to these challenges by comparing them with Lendela.
Lendela is a loan comparison site that is designed to help simplify the process of the loan application and its processing time. We use algorithms and advanced filtering that helps to match your application with lenders who are willing to lend to borrowers of your profile.
This is why you are likely to get a personal loan application approved by multiple lenders through Lendela, so that you can compare them and make an informed decision on your future loan. Here is the process of the loan application with Lendela.
Submit a short application on the Lendela website. This is sent to different lenders to increase the chances of approval and cut down the processing time.
Lenders issue offers back to you in realtime.
Pick the preferred loan offer by checking the terms, comparing with your income etc.
Book an appointment to sign the personal loan agreement with the selected lender.
Sign the loan agreement, and the money is sent to your account.
When you submit an application for a personal loan, it is paramount to start by establishing all the related conditions, such as monthly interest rate and administration fees. Although you can calculate the monthly rate manually, it is a complex task and you risk getting the wrong numbers if you do it incorrectly. This is why you should use a personal loan calculator.
The calculator is simple, fast, and convenient because all an applicant needs to do is to enter the loan amount and tenure. The personal loan calculator allows you to plan for the payment of cash in months and years for a smooth process. Even as you plan to use the calculator, the process of the application is also very important.
Instead of making direct applications to different lenders, Lendela offers a better option that increases the chances of approval. It also reduces the processing time. To use Lendela, you only make a single application that is forwarded to multiple banks and financial institutions. Then, each lender that approves the application will provide its offer based on the applicant’s personal conditions.
You simply compare your options and select the best loan offer, which should normally be the one with the lowest interest rate and with the lowest fees.
As you can see, a personal loan calculator in Singapore comes in handy to help you make the right calculations about the loan and plan for repayment in line with the loan tenure. Also, make sure to apply through Lendela, to reduce the processing time and increase the chances of approval. You can also use our car loan calculator in Singapore.