Taking out a loan is always a difficult decision, and one that should not be taken lightly. People take loans to cover all sorts of reasons and problems. A loan in the right situation can be very helpful, although it is important to understand that there are times when a loan can come back to haunt you.
Before understanding whether taking a loan is the right decision or not, you need to clearly understand the reasons you are taking the loan and which type of loan you are going for so here we have a guide all about loans in Singapore so that you can see the best choices:
A personal loan is a loan that is registered to an individual, and not a company or an organisation. Personal loans are available for a number of reasons in Singapore, including buying property and cars. Interest rates generally vary depending on the situation and the lender, so it is difficult to give an exact figure that people in Singapore can expect to pay when it comes to paying interest on a loan.
Pay Day Loans
A very popular type of loan is the Pay Day Loan. A payday loan is a loan most people usually take out to cover their expenses until their next payday. In Singapore, you will usually have to provide evidence of employment as well as monthly earnings above SGD 1800. In most cases you will also have to be aged between 21 and 64. You must also have the right to reside within the country, either by being a Singapore citizen, a permanent resident or possess a work visa.
Payday loans can be good because they are often quite fast and in most cases, you can have the money available to you the very same day. It is also one of the simplest ways to get a loan, as you can just apply online and quickly receive a loan within 24 hours. These loans are often short term, and you will be required to begin repayment once your monthly wages come in.
You should be wary however of getting stuck in a cycle where you are constantly taking out loans each month to cover your expenses. This can lead to you finding yourself in a bad situation, so loans should be taken out responsibly.
Loans are also available to those engaging in business or those who run organisations. The laws around loans related to business expenses are generally orientated in a different manner to personal loans. Financial information of a business, including income and profit margins, are often used to measure whether giving a loan is financially viable for the lender. Future profits should also be mapped out as expected, so the lender can have a good idea what kind of deal they are entering in.
Overall, there are a number of great loan opportunities in Singapore and you can see the Registry of Moneylenders in Singapore for more information. If you are in a position where a loan would be necessary, there is no shortage of high quality lenders. But make sure you do not take out unnecessary loans, as that can cause a lot of trouble for you in the future!