Introduction
When you need some extra money and are looking for a personal loan in Singapore, it’s important to understand the basic requirements of these loans.
This way, you can be better equipped to make an informed decision about whether or not borrowing from your bank or financial institution is right for you and your needs.
Here are things that you should know before applying for a domestic helper loan:
1. Loan Amount
The loan amount is the amount of money you are borrowing. Note that each lender has a minimum and maximum loan amount set by each, which can vary from one lender to another.
The minimum loan amount is the lowest amount for which you can apply for a personal loan.
If your monthly income is not enough to pay back the full balance within two years, then it will be difficult for us to process your application at this point.
2. Loan Tenor
A loan’s tenor refers to the number of years it will take for you to pay back your debt.
Tenors come in many different lengths:
- 1-year loans – These are best suited for someone who has enough money saved up but wants to put off repaying their debts until later when they have more cash available;
- 2-5 year loans – If you like having extra cash in hand but don’t want too much credit card debt hanging over your head;
- 6-9 year loans – This option is great for people who would like some breathing room from their payments without having them spiral out of control into something unmanageable;
- 10+ year loans – This type works well if there’s no urgency with paying back money immediately.
3. Personal Loan Interest Rate
The interest rate is the money the bank charges for using a loan. The interest rate is usually applied to your loan balance, not just the amount you borrow.
Interest rates vary from one bank to another and are based on many factors, such as your credit score, loan type, and how long you need it.
Interest rates also change based on market conditions and economic trends.
Generally speaking, personal loans come with higher interest rates than credit cards because they’re riskier for banks because there’s less protection in case something goes wrong with the borrower.
4. Application Process & Approval Time
Applying for a personal loan can be done in just a few minutes, and you’ll receive the money you need within the same day. You may be amazed at how quick and easy it is to get approved.
There are many reasons why applying for a domestic helper loan is so simple:
- It’s no longer necessary to fill out tedious paperwork or wait days/weeks before getting an answer.
- The application process is fast and easy, which means no more wasted time spent filling out forms on your phone or computer—than having to do it all over again if there were mistakes.
The approval time for loans has also been significantly shortened thanks to modern technology and online application.
Conclusion
After reading this article, I hope you understand what is required when applying for a personal loan and grab the best interest-rate deals offered by banks or financial institutions in Singapore with reasonable terms, conditions, and fees.
The more you know about your options, the better off you will be.