Before Applying for Personal Loan

Before Applying for Personal Loan

Below are some pointers to consider before applying for your personal loan.

Pointers:

1. Collateral
2. Use
3. Affordability
4. Compare Banks
5. Consider Other Options
6. Need
7. Economy

Collateral

If you have property or a car under your name, it would present you with a better chance of success in the application for a personal loan. Having personal properties that have desirable bank values will have a big impact on the success of a personal loan. It is because these personal properties serve as collateral that gives guarantees to lender when time comes that the borrower has nothing to pay.

Use

If you are using your money for just a short-term period then we suggest other methods of obtaining the necessary financials. Bank has a fixed interest rate in personal loans. The time basis that the bank has set is more likely, monthly, quarterly, and annually. Obviously, the shortest duration among them is the monthly basis. Now, if you are borrowing a money and using it for just, let us say, a week, go find another method otherwise you will pay for the one-month interest that the bank has set even though you have used the money less than a month.

Affordability

Do your calculations and planning before applying for your personal loan. Check if you are able to repay the personal loan every month by deducting from your monthly salary. Remember to include your other expenses as well to confirm. One thing, do not set an exact amount in calculating your expenses. Put an allowance.

Compare Banks

Always compare all the banks and money lenders offering personal loans before deciding on which bank to apply for your personal loan at as different banks offer different interest rates. Also, keep updated with details as some financial institutions may offer loan promotions.

Consider Other Options

Your relatives or friends may be able to lend you money instead. Make this as your first option on finding a personal loan since, the connection and trust is already there. The best thing about this option is that this offers lesser requirements. But remember, not all the time your relatives and friends have the finances you needed to lend you.

Need

Reconsider about whether you really need the cash as you might not want to go into debt as it isn’t one of the best options for you. Always ask these questions before taking a step. How deeply do I need the cash? For what am I applying a personal loan, is this for expenses or investment?

Economy

Always consider the current economy. If the economy is bad, do not take up a personal loan. We suggest you try waiting until the economy is better and more stable. This is to prevent yourself from having difficulties to repay your outstanding payments.

After reading these pointers, Personal Loan Singapore hope you have benefited in one way or another, changing the way you decide when applying for your personal loan. If you have any further enquiries , feel free to email us at the address listed on the Contact page.

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