Lendela's guide to the best personal loan in Singapore
How do you find the best personal loan in Singapore the easy way? Take a few minutes and read our guide below, and you will have all the important information you need before applying for a personal loan online with Lendela. If you still have questions, feel free to contact our Customer Relationship Team for help.
A personal loan is money borrowed for personal use, such as paying off credit card debt, buying home gadgets, home or kitchen renovation, embarking on a special vacation, education, medical or wedding expenditure, or emergencies. Personal loans are also called consumer loans and are not usually backed by collateral. Banks typically begin the process by determining your credit score to assess whether you are eligible for a personal loan in Singapore and what interest rate should be placed on the loan. Making repayments on the loan usually involves making principal and interest payments monthly. The interest rates that are fixed on personal loans in Singapore will be determined by your credit history. Personal loans can be a good solution for individuals with financial issues that need to be resolved instantly. It also enables huge purchases and repayments at your own pace.
It can be overwhelming to stay on top of your debt load when your balances are spread across a number of different credit cards or loans, especially if you are swimming in heavy debt. Debt consolidation can be an effective financial strategy for those struggling to keep up with their personal loans. Getting your debt consolidated helps you stay organised, better manage your monthly payments, and ultimately turn your finances around. It can also save you a significant amount of money over time and the stresses that come with it.
What is Debt Consolidation?
Simply put, debt consolidation is a way of combining all your debts into one single consolidated monthly payment. So instead of making multiple individual debt payments each month, you will simply have to pay one monthly payment to your new bank. Debt consolidation plans are only used for unsecured credit facilities, in other words, loans that are not backed by collateral.
Besides greatly simplifying the process of payment, a major benefit of debt consolidation is that it can lower your interest rate and help you build a better credit score. This means that over time, you will pay a significantly lower aggregate cost when compared to repaying individual debts, thereby relieving financial pressure.
How does a debt consolidation loan work?
To get your debt consolidated, you will need to take out a debt consolidation loan. The eligibility requirement for a debt consolidation loan from a bank in Singapore is an aggregate debt of more than 12 times your monthly salary, but there are instances when banks may approve a smaller debt consolidation amount.
When you first consolidate your debt loan, there will also be an additional 5% allowance over your total outstanding balance, given directly to the bank you had borrowed money from. This allowance is used to take care of possible fees that may be incurred from the time that your loan is consolidated to when you receive the funds. It cannot be deposited into your checking account.
Once you have settled your debt consolidation plan, you only need to pay a single loan each month. Although the loan tenure may be longer, the borrower may enjoy a lower interest rate and free themselves from the stress of dealing with multiple debt collectors. Singapore has a number of banks and financial institutions that provide debt consolidation to Singapore citizens and permanent residents. With Lendela, you can easily find the best debt consolidation loan for your needs and put yourself on the right path to achieving financial freedom.
Education can be a powerful tool for upward economic mobility, but there is also no denying that tertiary education does not come cheap in Singapore. In addition to tuition fees, there are also a host of other related fees that adds to the financial strain on students, including textbooks, accommodation, and more. It is common practice for students to take out a loan to help finance their higher education. This is where a student loan, also known as an education loan, can come in handy.
What is a student loan?
A student loan is a type of unsecured personal loan designed to help students pay for their higher-education expenses. Similar to other personal loans, the loan amount is usually repaid through regular instalments over the course of a few months or years, with interest and any other additional fees. Typically, student loans offered by banks in Singapore have a minimum loan amount of $1,000, while the maximum loan limit can be up to 8 times the monthly income of the guarantor.
Who can qualify to apply for a student loan?
Requirements for student loans vary from bank to bank, but typically, you will need to be a Singapore citizen or a Permanent Resident, between 18-60 years of age, and have a minimum annual income of $18,000. For students without a steady stream of income, you will need a loan guarantor with an annual income of at least $30,000. Your parents or sponsor can apply on your behalf, or you may file a joint application with multiple sponsors.
Not all student loans are created equal, so to ensure you can free yourself from debt as fast and as stress-free as possible, it is important for you to find a student loan that has a lower interest rate, suitable loan tenure, and caters for your personal needs and financial circumstances. There are numerous student loan options in Singapore, each with different requirements and conditions, and Lendela is dedicated to helping you save time used in comparing the different options. It provides you with a list of tailored student loan offers so that you can apply for the most suitable option quickly and with ease.
Life has its way of throwing curveballs at you when you least expect it. And at some point or another, you may find yourself in a tough financial situation and in need of some unexpected cash. Whether it’s to cover a sudden business expense or to meet family emergencies, cash loans can be an excellent way to get quick and direct access to funds and help get you through challenging times.
What are cash loans?
Cash loans are a type of unsecured, short-term personal loan meant to help you cover unexpected costs. They can range from around $1,000 to $5,000, with the amount given to you in one lump sum and repaid in regularly scheduled payments with interest. Cash loans are a very popular form of loan in Singapore because they do not involve collateral, allow a greater degree of flexibility in terms of how you use the funds and have a relatively fast and relaxed approval process compared to standard personal loans. Yet, at the same time, they usually involve a higher interest rate.
How do cash loans work?
Designed to quickly help individuals address their short-term cash needs, cash loans have a simple and straightforward application process. They do not require a large amount of paperwork and have minimal eligibility requirements. To qualify for a cash loan, you should be aged 18-70 years old, have a minimum monthly income of $1,200 and be a salaried Singaporean, Permanent Resident or Employment Pass holder. Ease of application entails that even those with a poorer credit score could apply for a cash loan. However, it is important to note that having a good credit score can help you obtain a lower interest rate.
Since cash loans are unsecured, banks bear a higher risk of default, which is offset by a higher interest rate on the loan. This means that when it comes to applying for a cash loan, it is crucial that you carefully review your options and find an offer with an interest rate that you can afford. Otherwise, you may risk putting yourself in further debt. Lendela helps you quickly find the best cash loans available to you in Singapore, so that you can make the best possible financial decision. You only need to fill out a short online application form, and you will receive multiple offers within minutes.
Home improvement can be a massive and costly endeavour, especially if you’re already feeling a bit strapped for cash after paying the down payment for your new home purchase. Be it replacing old appliances, putting in new floors, or repainting the walls, even little upgrades here and there can add up to tens of thousands of dollars. But that doesn’t have to stop you from living in your dream home. Getting a renovation loan is a popular solution for property owners in Singapore looking to finance their home improvement projects.
What is a renovation loan?
A renovation loan is a form of unsecured loan that allows homeowners to avail funds for home improvement and maintenance purposes immediately, and repay the money in instalments with interest over an agreed-upon period of time, usually between one to five years. In Singapore, there is usually a maximum loan limit of $30,000 or six times your monthly salary, depending on whichever amount is lower, as well as a minimum income requirement of around $24,000 to $30,000.
The credit advanced to you is not to be diverted to any other purposes. That being said, a renovation loan can still cover a wide array of expenses, including fixing damaged flooring and electrical and plumbing systems, remodelling the house, interior and exterior decor, and even the home expansion projects like building a new patio or garage.
What are the benefits of a renovation loan?
A renovation loan can help you overcome your financial barriers and achieve your ideal home. Although a home renovation loan is a type of personal loan, it differs from your standard personal loan in that the tenure is usually short-term, and interest rates are also much lower, making it an attractive option.
Another benefit of a renovation loan is the fast application process and easy funding. The process of applying for a renovation loan is straightforward. If you have a good credit score, your application will usually be approved, and you can get financial support for your renovation in no time.
Additionally, if you are looking to re-sell your rent out your property, home improvements can significantly boost the value of your space and help you build your home equity faster!
Buying a car is a big financial commitment and perhaps one of the most significant purchases you’ll make in your life. With such an important decision, you want every detail to be tailored to your liking – from the colour to the style and specific features. But what if you’ve found your dream car and coming up just short on cash to pay for the vehicle? That’s where taking out a car loan from a trusted financial institution can be your best bet to have your cake and eat it too.
What is a car loan?
As the name suggests, a car loan gives an individual access to funds needed to finance the purchase of a vehicle, be it used or new. The borrowed money is repaid to the bank in instalments over a period of time of up to seven years, plus interest. In Singapore, you can expect to get around 30% to 50% financing for your car, with a maximum of 70% for cars with an open market value of $20,000 or less. For cars with an open market value of over $20,000, the loan amount is capped at 60%.
Options for car loans
In Singapore, there are two ways in which you can obtain a car loan – either from the bank or a car dealership. Car loans with banks work in a similar way as other types of secured loans and are considered a direct way of lending. Banks are the ideal option for those with a good credit score, as they may enjoy a lower interest rate.
Various car dealerships also offer in-house car loans that make it convenient for you when you are buying a car. It is usually easier to obtain a car loan with a car dealer than with a bank, especially if you do not have a great credit rating. However, car loans with car dealerships are usually more expensive as there are additional administrative costs and commission fees involved.
An alternative option is to get a personal loan and use it to buy the car. A personal loan is unsecured, meaning that the car is not placed as collateral for the loan, which is the case for traditional car loans. Using Lendela, you can quickly find and compare the best personal loan offers with a competitive interest rate and loan term that suits your needs, to finance you car purchase.
Weddings are a once-in-a-lifetime celebratory event, and often a costly one at that. On average, weddings in Singapore costs around $30,000 to $50,000 but can rack up to over $100,000 if you are after a more extravagant affair. It’s fair to say that couples planning a wedding face a lot of financial stress. To help ease the pressure and clear your fees upfront while giving you the freedom to host the wedding of your dreams, many couples in Singapore turn to wedding loans as a solution.
What is a wedding loan?
A wedding loan is a personal loan taken out to finance wedding expenses. It can be used to cover a wide variety of wedding-related costs such as wedding attire, banquet, catering, photography, and even honeymoon trips. As it is an unsecured loan, you do not need to back it up with any collateral. In Singapore, you can get a wedding loan up to 10 times your monthly salary. Loan tenures are typically short-term, and you would repay your bank in instalments over a period of one to five years, depending on your financial capabilities.
How do wedding loans work?
Firstly, to apply for a wedding loan, you must make sure that you satisfy the basic requirements. In Singapore, these include being at least 21 years of age, a salaried Singaporean citizen, permanent resident, EP holder, or S-pass holder, as well as having a minimum monthly income of $2,500.
Besides ensuring that you fulfil the above criteria, there are a few other things to consider when taking out a wedding loan. Upon determining your financial needs, you want to find a bank that can meet them at a reasonable interest rate and terms. Bear in mind that a good credit rating can help you get a lower interest rate and a better loan offer. It’s important to carefully compare and weigh up your options, lest you risk paying more than you need to!
With many banks and financial institutions in Singapore offering wedding loans, it can be a time-consuming process to figure out which best suits your needs. Lendela is here to do the legwork for you. After filling out a short application, you will get a tailored list of the best wedding loan offers you qualify for within minutes. It doesn’t get any easier!
How does Lendela help you find the best personal loan in Singapore?
It is time to get the hustles out of the personal loan application process, and Lendela is here to make it happen. Whether you want a personal loan for buying a new car or to fund tertiary education, the process does not have to be stressful and painfully long. By applying for a personal loan through Lendela, the process that could have taken multiple hours, days, or weeks is completed in just a few minutes.
Comparing loan offers with Lendela makes it easy for you to land the best loan offer available to you in Singapore, and to do so quickly and efficiently. Why struggle to make ten applications, and all of them get rejected when Lendela can help you find the one in no time? Submit the application, go on with your day, and let Lendela do the work for you. Other benefits of using Lendela include:
1. You only need to provide a few details.
2. Lendela partners with a long list of banks and financial institutions to get application approval as fast as possible.
4. You can find a personal loan even with a not-so-good credit score. Even if most conventional banks might have declined your application, Lendela can help to revive your hope of getting the personal loan that you want.