Are you broke? Do you like large amounts of money? Do you need cash to repair any damage? Do you need cash now? But where do you start? Here’s a simple look at what a personal loan can do for you. But you might wonder ‘what is the process to receiving a personal loan? How would a personal loan benefit you?’ Here is some basic knowledge to get a loan now and receive cash today.
This article will help you understand how fast can you can get money from a personal loan and the process to receiving one. Let’s talk about ‘What is the process to receiving money from a personal loan?’ Advance companies and banks supply loans to offer assistance to those who need funds for accelerating into investments, consolidating debt or financing repairs for a car or a home. It can also be used for your personal benefit whether you want a new car, need to pay off a phone bill or planning a vacation. Whatever you need, a personal loan has got you covered. For renovations or education purposes more specific loan affairs are suited to those special needs. We will discuss the steps to receiving a personal loan in Singapore.
Credit ‘scores’ not credit ‘scares’
Credit scores help so the lender can help asseset your capacity to pay. Banks and credit unions even look beyond that score and dive into your entire credit history. Always monitor your credit health so it won’t scare away any lenders and regularly pay your loans to ensure a better prospect for a future loan.
Bad history for not paying your credit bill on time or any missing payments for your car or home loans etc. this will effect your credit score. So always pay your bills!
What is the application process like?
You need to file documents that prove your residence and identity, or government-issued IDs and clearances. Also , proof of employment and employee form your current job , financing requirements, your NRIC copy, the CPF statements submitted over the past 12 months and your latest original computerized pay slip are required. These will help determine how much money you can borrow. Beware some banks also want their personal loan clients to have a land line phones at home or in the office for verification purposes.
Remember these three things to consider when getting a personal loan:
- Loan Tenor - the length of time until a loan is due.
- Interest rate
Another important factor is that your income needs to be at least $20,000 for Singaporeans and $40,00 for foreigners.
Also how long you have been employed could play a part in your eligibility for getting a loan, even though it might not be stated in the loan process.
So how fast am I to get my money as soon as possible?
After your loan is approved, the money will usually be credited toward your deposit account. This could take seconds to a couple of days or may take a couple of weeks.
If you need cash right now make sure to compare which bank credits your loan amount the quickest
In Singapore there are a handful of banks that will provide a personal loan, with varying interest rates and tenors ranging from 1 to 7 years for installment loans. Interest rates vary from about 2% for a car loan to 20+% for lines of credit.
Before you decide on a personal loan compare any incentives that banks are offering now as they could benefit you and substantial.
So who can apply for a Personal Loan?
Singapore Citizens Congratulations!
Offered to you if you are typically between 21 and 70 years old. If you are a foreigner some institutions allow you to apply for bank personal loans, this also depends what country you are. Any foreigner should have a minimum income of $42,000. Be prepared to present a photocopy of your Passport , Employment Pass , original pay slip and Latest Income Tax Notice of Assessment.
Personal loans sound great but what else?
Find out what kind of financial agreement you are involving yourself in.
What’s involved in the rates?
Most banks in Singapore peg the annual add-on interest rate at 4.5 percent to 8.3 percent. This percentage changes depending on the amount you borrow and time it takes you to pay it off.
Finding the best loan deal is easy if you understand these basic financial agreements you are involving yourself in.
In review always ask: Are there any fees and charges involved ? What is the APR? What benefits me the most? These questions will also help you get the most out of your personal loan.