Tips For Applying For a Personal Loan in Singapore

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Costs of living in Singapore can get exorbitantly high, and there are an enormous number of borrowers in the country. While ideally you do not want to find yourself forced into applying for a personal loan, it is always wise to be prepared with the knowledge of where to go for your personal loan, Singapore trends and tips to follow.

Two Tips for Personal Loan, Singapore 

1. Shop around and compare before you apply

Rates of interest for personal loans can change incredibly quickly in Singapore. This means that it is best to shop just when you really need the loan. If you have been doing your research for a while, you may find the rates of the loans you are interested in have shot up and others you ignored have plummeted.

Besides looking around for loans only when you need it and not before, you should also shop around as much as possible and compare rates. If you get too comfortable and go to your current bank expecting rewards for loyalty, you may be sorely disappointed. Nor is it wise to follow in the footsteps of a friend and visit their bank on recommendation.

You never know where you might find the best and cheapest loan for you. You need to be able to find a bank that does not have too many clients at the time. This will make them a little desperate for a client and you might score great rates, happily laid-back repayments terms and even win some free gifts!

2. Specific loans are cheaper

Moneylenders and banks like to know exactly where they are putting their money. They want to make it easier for themselves when it comes time for them to collect. This means that when you are applying for a loan, you need to be as specific about your use of that loan as possible. If you need money for education, do not apply for a personal loan, when there is an education loan available. If you need a loan for renovation, go for a renovation loan rather than a personal loan.

To encourage people to be specific about what they will be using their loans for, banks offer lower interest rates on packages like renovation and education loans. You will find these loans having interest rates as low as 2 percent, as compared to the 5 or 6 percent interest on personal loans.

Other Tips  

If you are planning on applying for a major loan for a home or a car, you should avoid taking a personal loan a few months before it. Otherwise you may find that the major loan you qualify for is smaller than you need.

Also, be sure to check the penalties to avoid finding yourself in a nasty and unexpected situation where you are unable to pay. All other factors being the same choose the lender offering a lower penalty.

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