It can happen to anybody, one day everything is fine and the next your car breaks down or you are faced with a major home repair. If you are like the majority of people, you do not have several thousand-tucked backs for these eventualities leaving you with few options. It is at this point a Personal Loan Singapore begins to look very enticing. However, there are a few things to consider before signing on the dotted line.
As a general rule, the terms of a personal loan from a moneylender will be similar. Nevertheless, this does not mean they are perfectly identical, so you need to do your homework. What is the length of the agreement? How soon will you be required to pay the loan back in full, and perhaps most importantly what are the interest rates? You may need money fast, but this does not mean you should not shop around.
Are you required to put up any form of collateral for the loan? This could include a caveat to your agreement, which allows the lender to sell any real property, you own to satisfy the terms of the agreement. Do you want to risk a lien on your home or vehicle should you be unable to repay the loan or if you are late on a payment?
What is the maximum amount you can borrow? Personal loans from a moneylender, particularly those that have no collateral, are based on your income. Some lenders will use your annual income while others prefer to look at your most recent weekly or bi-weekly pay. Depending on your income and the particular lender you choose, amounts could range from a few hundred to several thousand dollars.
Understand the Fees
What other fees is the moneylender entitled to? Once again, this will likely vary from one lender to another, but you can usually be prepared to face extra fees for late-payments or any legal fees the lending company may incur trying to recover the loan in the event you default.
Personal loans are not just meant for emergencies, in fact, they are quite a common place for real estate or business bridge loans as well as for the purchase of a new automobile or other financial endeavors. Medical expenses are a rising motivator for personal loans as well. The important thing to remember about personal loans is to always read the fine print, know exactly what you are agreeing to before you sign the papers!