How To Choose A Personal Loan In Singapore
No one knows when a tough time will arise in life and will create an emergency situation. Individuals will face severe problems during these emergencies, and here, you can opt for personal loans.
This loan does not require any security and one can have it without submitting much documentation. Experts suggest that one should select licensed money lending companies to get a personal loan.
Tips to select a personal loan
While opting for a personal loan, you need to check several factors. Readers can check below the essential points relating to the tips for selecting a personal loan.
- Need for a personal loan
Individuals think that personal loans are necessary only for big purchases. But, it is not that. You can use the personal loan amount for many areas. Apart from emergencies, you can have personal loans for a house renovation, preparation for marriage, etc.
- Meet up credit card debt
Credit card debt comes with huge interest and charges. Whereas personal loans come with low-interest rates, getting personal loans to meet up with credit cards will be a wise choice. It will help you to maintain a good credit score.
- Pay insurance policies
Often, individuals face problems while paying a premium for an insurance policy. Personal loans will help you make insurance policy payments so that the policy won’t get lapsed.
- Online loan
It is a good option to apply for a loan online so that you can get instant approval. Many licensed financial institutions maintain websites, and one can easily select the best 24 hours money lender Singapore.
Selecting the right money lender is necessary before you apply for a personal loan online.
What is debt consolidation?
Do you have more than one personal loan? If so, it becomes a tough task to make repayment of all loans separately. Here is a debt consolidation plan which will help every borrower to consolidate all unsecured loans. While opting for DCP, you don’t need to make repayment of all loans individually. The rate of interest of DCP normally varies between 3.12% and 12% and the tenure of DCP ranges between 1 to 10 years.
Eligibility for Debt Consolidation Plan
Individuals who are opting for a debt consolidation plan are hardly aware of the eligibility criteria. In Singapore, only permanent residents of this country can apply for a personal loan. A borrower must have crossed 21 years of age. Individuals must be within the income category between S$20000 to S$ 120000. Moreover, the asset value of borrowers should not exceed S$2 million. Moreover, those who have heavy debt amount can opt for DCP.
Benefits of DCP
Many are still unaware of the probable advantages of debt consolidation. Here all can get complete details of the debt consolidation plan.
Simplification of repayment
The prime aim of DCP is to consolidate all unsecured loans together and make a monthly repayment. So, you don’t need to make several payments of unsecured loans. It will lower the burden of loan repayment.
While you opt for a debt consolidation plan, you will enjoy a low-interest rate. This will help you to repay all your unsecured loans at a low-interest rate. You can opt for private money lenders debt consolidation to get the best loan repayment option.
Enhanced credit score
Loans are approved for any person based on their credit score. Hence, it is necessary to maintain a good credit score. Whenever you opt for a new loan, it will reduce your credit score. But, once you opt for a debt consolidation plan, it will help you to increase your credit score. It will help you to get new loans easily.
Faster debt repayment
Once all debts are consolidated, you will be able to repay entire unsecure loans together faster than individual repayment. Again, as per DCP, all repayments are to be made at a lower interest rate. So this will also help you to save your hard-earned money.
Application for a debt consolidation plan is easy. You can select licensed money lending companies to easily apply for the loan.
DCP for low-income people
Sometimes people feel that they cannot get Debt consolidation policy due to low income. Well, it is not true, and in Singapore, people in the income group of S$20000 can also apply for DCP. PBS, DBS, Standard Chartered, etc are some popular banks that offer Debt consolidation plans.
Things to consider
While you are going to apply for a DCP, you need to consider several factors. First, it is necessary to check the interest rate. The debt ratio is another significant factor you must consider while opting for a debt consolidation plan.
Once you apply for the best personal loan for low income Singapore, the above factors are required to consider. No doubt, the debt consolidation plan effectively repays monthly instalments of all loans together.