Sometimes we need extra money to fund a special project, like a trip, a birthday present, or just for shopping. Other times, they need the extra cash due to an emergency, like a broken-down car or a nearly overdue bill that needs to be paid. Whatever the situation, Personal loans singapore can be a good quick fix.
What types of personal loans are available?
Personal loans can be divided into two categories: long term loans and short-term loans. In long term loans, you have both secured and unsecured loans. The repayment terms vary depending on the amount requested, it can have a duration of one or two months or up to ten years. It can vary and will also depend on the loan chosen and the terms of the lender. Short-term loans, on the other hand, are intended to meet urgent needs, with the repayment terms of these loans not exceeding a few years.
Long-term personal loans
The most common of these loans are secured and unsecured personal loans; Secured loans are based on collateral which works as a security measure for the lender. The collateral maybe, depending on the amount requested, a house, a car, or anything else that can cover the loan amount, is something that happens and you cannot pay it back.
These loans are also based on your credit records. If you have a good credit rating, you can ask for more money than if your credit isn’t as good. The good news if your credit isn’t good enough is that even if you can’t borrow a large amount of money, you will still be eligible.
Secured loans have convenient interest rates and fees. You can also get excellent repayment terms. You just need to look at different lenders and decide which loan is closest to what you are looking for.
Remember to know all the terms and conditions of the loans you are planning to apply for. Some lenders may charge you a penalty if you intend to make a prepayment.
Unlike secured loans, unsecured loans do not require collateral to secure repayment. These loans are usually a bit more expensive because the lender takes more risk. The amount borrowed will always be less than the amount offered with a secured loan, and this will also depend on your credit score. Generally, the payment terms offered for unsecured loans are shorter than the terms offered for secured loans.
Short-term personal loans
As stated earlier, these loans are meant for unexpected situations requiring quick fixes. In this group, we can place short term personal loan.
Short-term personal loans are designed to offer a limited amount of money – around $ 20,000 depending on the lender – and typically need to be repaid within five years or less. Depending on the lender, you may or may not be required to post collateral to apply. They have higher interest rates than long term loans. The higher your credit score, the better the loan terms you can get.
Payday loans are the other option of short-term loans. These types of loan terms do not exceed two weeks and the amounts borrowed are not very high. Since the payment terms are no longer, you will be eligible even with bad credit. Of course, with a good credit history, you will get better terms.
You can search the Internet for a lender and apply it from your computer. The response is almost immediate and you can have the requested money in your bank account the same day you complete the forms. The only requirement is to provide your bank details. You can return the money to your lender’s office or give permission to withdraw the money from your bank account on the loan due date. Some lenders may also require you to leave a signed check for the loan amount as collateral.