There are many types of loans available to everyone. Out of all those loans, a personal loan is a very special loan in many respects. There are many things to know about it and if you are planning to take any personal loan, you should know about all those things. Let’s know them all one by one in our today’s guide for a personal loan.
What is a personal loan?
Many times some situations come in our life before us when we don’t have sufficient money at that very instant and we need a good amount of money to finish or initiate some of our very important tasks. In such conditions, if we go to take any other type of loan, which will not work for us due to so much time taken. Therefore in such situations, we can go for a loan which could give us money as soon as possible. Such types of loan which we can get in a faster way are known as a personal loan. There are many other things to know about it. In our further discussion, we will continue to discuss all those important things related to it.
Eligibility to take it
Anyone who needs money can apply for this loan. However the general eligibility of taking this loan may vary depending on many factors like how much you earn, where you do apply for, what amount you apply for, etc. In general, it is given on an average to good. But it is not so with all the loan giving companies or banks. Many of the banks give personal loans even to those applicants whose Credit score is very low. The personal loan eligibility Singapore is very flexible for all the applicants who want a quick loan. Here anyone can take the loan even if they have a low credit score.
Reasons to apply for this loan
There are not just one or two but many reasons for which you can go to apply for and take a personal loan. It can be taken for financing a wedding party, financing a medical need, for completion of Education, for buying a new car, for home renovation, etc. So in general we can say that a personal loan can be taken for almost all of those reasons which you can count for taking any other type of loan.
Generally, there are not many documents required for any personal loan, one main document is needed to initiate your loan approval. Some of the very common documents which you can use to give your identity or address or both of these are Identification cards, employment pass, passport and etc.
Things to check to get the best personal loan
There are many things that you should check before you apply for any personal loan. Some of these things have been mentioned below.
The very first thing you should check before taking any personal loan is the rate of interest. After searching all the loan sites, you should go for any loan which could give you the loan on the least monthly interest or EMI. The personal loan rates Singapore is one of the cheapest rates which you could find anywhere. Along with this many other features also you would find here.
Many of the banks also take some processing fee to initiate the processing of your loan. For such things, they may ask you for some additional charges in the form of a processing fee. So before you finalise any personal loan, you should make sure that the bank is not taking any personal loan or if there is any mandatory processing fee with all the loans, you should go with the least processing fee.
In many situations, people want to clear their whole loan amount before the actual date. In this case, many of the banks just don’t give the option to prepay it. So if you want to get the best personal loan, you should check this option too.
Benefits of a personal loan
There are not just one or two but many benefits of a personal loan. Some of the benefits have been mentioned below.
This is the only loan that you can get even without submitting more documentation. This is the reason the personal loan gets approved most quickly and you receive the loan amount in your hand too.
The loan can be taken by those people also who have a low credit score and sometimes even the defaulter could be given a personal loan too.
The interest rates in such loans are the same throughout the loan tenure. So it makes your plan regarding loan payment very easy.
A personal loan can be taken as an option for any of the other loans too if you want the loan amount as soon as possible.
Some darker sides of a personal loan
Just like the benefits of a personal loan, there is some dark side too which you should know before you apply for a personal loan. Let’s know some of the main darker sides or negative points of a personal loan
Since a personal loan gets approved very quickly and you don’t need many documents to show for it, the rates of a personal loan are generally higher than all other loans.
As you noticed above too that in most of the personal loans, there are some additional charges also which you may be asked in the form of a processing fee.
Mostly there is no prepayment option in a personal loan. However, if you want to prepay your loan, you may have to pay some extra charges to the bank too.
Above we discussed all the good and bad things about a personal loan. So it’s all about your need and prudency about how you choose your best personal loan. If you manage all the things well, you will never make any bad decisions about taking a personal loan.