How can I get a quick personal loan with the best interest rate? This is the question that every borrower looking for a personal loan in Singapore asks to ensure he or she gets high value for money. As you search for the best personal loan interest rates, it is important to understand that it is not just the interest that determines the amount payable. Keep reading to learn more about personal interest rates, what more to look for when applying for a personal loan in Singapore, and the best way to apply for a quick personal loan in Singapore.

Personal loan Singapore

Understanding Singapore Personal Loan Interest Rates

When looking for the best personal loan rate, it is important to gain a clear picture of the different interest rates that may be attached to the personal loan in Singapore, such as effective interest rates (EIR), advertised interest rates, and promotional zero-interest rates.

Advertised Interest Rates

This is a yearly interest rate, and you are likely to get it written in big fonts so that no one misses it. Most lenders use it as a marketing strategy to proclaim to Singaporeans with a demonstrable monthly income that they have the best personal interest rate in Singapore. However, the advertised interest rate does not usually give the full picture because it omits other charges associated with the loan you are taking. For example, it does not include the processing fee charged by the lender, which is usually about 1-3% in Singapore.

Effective Interest Rate (EIR)

When taking a loan in Singapore, it is compulsory for the lender to clearly state the effective interest rate of the credit. Unlike the advertised interest rate, EIR captures all the charges associated with the personal loan. For example, it considers the processing fees and every detail of the repayment schedule. As the EIR gives a more accurate reflection of the true cost, it can be a useful tool in helping you compare the best personal loan interest rates.

Zero Interest Rates

If you are interested in taking a short personal loan, some lenders might show that it comes with 0% interest rate. However, be mindful that most banks offering low, or zero interest rates usually attach high processing fees to such personal loans, which implies that you still pay the lender for the loan. Make sure to review the loan agreement closely to understand all the charges during its tenure.

Best debt consolidation plans in Singapore

What is the Best Way to Use a Personal Loan?

The main benefit of taking a personal loan in Singapore is that you have the freedom to use it the way you want. Unlike other types of loans, such as education loans and car financing, where the cash is only designated for a specific purpose, a personal loan is different.

With a personal loan, you are free to use it as you wish. However, this can be a major drawback because some people get tempted to direct funds to areas that do not deliver value.

Since the loan amount will have to be repaid with interest during its tenure, it is important to ensure you put it to the best use with your monthly income in mind. This may include:

Debt consolidation

  • An alternative way to consolidate high-interest debts if you do not qualify for a debt consolidation plan in Singapore.

  • Unlike debt consolidation plans, you clear secured credit with personal loans.

Paying for a Tertiary Education

  • Personal loans are the next-best option for education financing if you do not qualify for education loans such as Tuition Fee and Study Loans.

  • Unlike education loans from the government, which allow students to start paying after completing their studies, personal loans require you to start repaying immediately.

Paying Emergency-Related Cost

  • Meet emergency-related costs for you or your loved ones.

  • For medical emergencies, it is best to have an emergency account plus insurance. Other emergencies that you can put the personal loan cash into include repairing your car and roof restoration for your home.

Personal loan in Singapore: A dedicated guide

Why Lendela is the Best Platform to Apply for a Personal Loan

Lendela's platform was designed to simplify the process of a loan application. While an applicant can make direct applications to financial institutions in Singapore, the approval time is sometimes lengthy. With Lendela, the applicant submits a short application that is forwarded to multiple banks and financial institutions at once. After this, the lenders return with their personalised, best offers.

Here is how it works:

  • Visit Lendela’s website to submit an application for a personal loan. Make sure to include all the required details, including monthly income for fast approval time (it only takes a few minutes).

  • The applications are pushed to different banks and financial institutions who, in return, come back with their offers. These offers are pre-approved and calculated based on your monthly and annual income.

  • Check the offers and select the one with the best Singapore personal loan interest rate. Then, book your appointment with the selected lender (Lendela helps you with this too).

  • Sign the loan agreement, and the money is deposited into your bank account.

Apply for a personal loan in Singapore with Lendela now.

When comparing the different personal loan offers to find the best one with the lowest interest rates, you must understand the different interest rates on the credit, including the effective interest rates (EIR), zero interest rates, and advertised rates. Avoid getting carried away by the advertised rates and forgetting other charges.

It is also essential to review the personal loan details, including the monthly interest rate, approved loan amount, tenure, and fees in order to choose the best loan offer. Once a borrower decides on a personal loan offer that best suits their needs, he or she can book an appointment with the lender and sign the loan agreement, making the end of the application and start of the loan tenure.

To get the best Singapore personal loan interest rate, the best route is using Lendela. We work with trusted banks and financial institutions who are quick to review your loan application details, including credit score and annual income, and provide pre-approved offers. Remember that you will also need to have an elaborate plan for paying the loan in line with the loan agreement.

Key Takeaways

  • When finding the best Singapore personal loan interest rate, it is important to understand the different interest rates on the credit, such as effective interest rates (EIR), advertised interest rates, and promotional zero-interest rates.
  • Personal loans can be used for a wide variety of purposes, including debt consolidation, funding tertiary education and emergency-related costs. However, one should always be mindful of their repayment ability.
  • Lendela is the best platform for applying for personal loans with the lowest interest rates quickly and efficiently. It gives you personalised pre-approved loan offers from trusted banks and financial institutions, allowing you to easily compare all your offers at a glance and choose the best one.