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What Other Loans Are You Looking For?
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Frequently Asked Questions
We get a lot of questions on Loan Advisor and some of them quite frequently! To help clear things up a bit, we’ve added a list of the most frequently asked questions to us.
There are different types of loans in Singapore for every kind of financial emergency. Here are some of the most common types of loans:
- Personal Loans: This is an unsecured loan and easily the most versatile financial product. You can use it for any of your needs, such as car repairs, home renovation, or medical emergencies. Personal loans in Singapore can also come with a fixed term, such as a wedding loan.
- Foreigner Loans: This is a personal loan accessible to Singapore permanent residents or non-citizens working, or living in Singapore. The approval for this loan will depend on the borrower’s annual income requirement, and employment pass/permit type.
- Payday Loans: This is a short-term loan in Singapore that you need to pay back on your next paycheck. With this type of loan, you can only borrow the same amount as your monthly income.
- Business Loans: Business loans in Singapore can be used to invest additional working capital, expand your business, finance inventory purchases, and more. With this type of loan, you can get a higher loan amount and longer repayment term than other types of loans. However, your business must be registered in Singapore and must meet other eligibility criteria.
- Home Loans: This type of loan will help finance your first property purchase. It is also a good financial product if you’re looking to refinance your mortgage with a lower interest loan package.
- Bridging Loans: Opt for this loan if you need help paying for the down payment of your new property purchase while waiting for the sales proceeds of your old home. This is a short-term loan with only a 1-month tenure if you’re borrowing from licensed money lenders.
If you’re planning to borrow from a licensed money lender instead of traditional banks, make sure that you are dealing with a licensed and credible money lender. The licensed money lender must be registered with Singapore’s Ministry of Law.
Here are a few questions you need to ask whether you’re taking up a traditional bank loan or a loan from licensed lenders:
- What will you use the money for? For instance, if you need funds to pay for medical bills, then you can take up a personal loan. If you’re planning to pay for the downpayment of your new property, then a home loan may be a better option.
- How much can you borrow? Depending on the type of loan you’re getting, the maximum loan amount will vary as well. Additionally, the loan amount will also depend on your monthly income, credit score, and relationship with the bank.
- What is the interest rate? Interest rates may vary depending on the financial institution. Plus, other factors might affect your interest rates. So make sure to compare the interest rates between different loan plans before making a decision.
- What are the fees and charges? Aside from interest rates, you must also consider other charges, such as processing fee, late interest rate, late payment fee, early repayment fee, change in loan tenure fee, and more.
- Can you afford repayments? When taking out a loan, make sure that you can afford the monthly repayment. Note that failing to pay the monthly repayment can lead to late fees, late interest, and other penalties.
How quickly can you get the funds?
Bank loan applications usually take between 2-5 business days. Banks have more stringent loan application processes which may affect the approval time. Licensed money lenders, on the other hand, have lenient requirements so they typically approve loan applications within a day.
Lastly, make sure that you understand the loan terms and conditions before signing any loan contract.
Financial assistance in Singapore isn’t hard to come by. However, before you apply for any type of loan, you’ll need to understand what you’re getting into. There are numerous benefits to taking a loan, but loans also have some disadvantages.
- Improve cash flow when you need extra cash
- Flexible repayment period
- Unsecured loans do not require collateral
- Easy application, you can apply online or visit the bank or money lender’s office
- Loans, such as personal loans, have fixed interest rates
- High late interest and late fees if you fail to repay the loan on time
- The tendency for your loan to snowball and your debt will get out of hand
- Depending on the financial institution, eligibility requirements may be hard to meet
The average interest rate will vary depending on the type of loan you’re getting as well as the financial institution you’re borrowing from.
For example, a traditional bank home loan from Maybank or Standard Chartered is around 1.24% per annum. Licensed money lenders, on the other hand, can only charge between 1% and 4% per month, regardless of your income.
Additionally, interest rates will always vary and fluctuate with very little notice. The deals available today might not be available tomorrow, and vice versa. Secure the best rates now by filling in Loan Advisor’s quick online form and comparing the top personal loans currently available.
You can apply for a loan from any bank in Singapore or licensed money lenders in Singapore. However, make sure that you are dealing with a licensed lender by verifying their credibility. You can find the complete list of licensed moneylenders on the Ministry of Law’s website.
If you want to apply for a loan quickly or you need cash urgently, you should compare loan quotes from licensed moneylenders in Singapore that offer fast cash disbursement.
Most licensed moneylenders will offer faster application processes than banks, usually with a final decision made within 24 hours or less. That said, it’s important to compare exactly what different lenders are offering to someone in your unique situation to ensure you are getting the best deal possible.
Taking up a loan, whether it’s with a bank or licensed money lender, will have an effect on your credit score. Being late on your monthly repayments can negatively impact your credit score.
Note that banks and other financial institutions use your credit score to determine how likely you are to repay your debts. A low credit score can lead to higher interest rates or rejection of your loan application.
The best way to get a loan immediately is to apply online for a loan. Although there is no such thing as instant approval, there are financial institutions that can offer same-day cash disbursement.
With Loan Advisor, we can get you three trusted quotes within five minutes or less if you fill in our simple online form today. However, once you’ve selected the right loan plan to suit you, you’ll need to arrange an appointment with your preferred money lender to sign all the necessary paperwork. This is a standard requirement under the Ministry of Law’s rules.
Realistically, you can expect to have your loan approved and cash in hand within just an hour, assuming you are able to organize this appointment promptly and pass any eligibility checks with no issues.
The biggest difference between a licensed moneylender and a bank is the amount of loan available to the borrower. While a bank loan oftentimes offers lower interest rates due to their access to larger sources of funds, the process of application and difficulty in approval means that smaller lenders should also be considered.
Moneylenders might not have access to a large amount of funds, but the ease of their loan application and fewer restrictions would make it easier for small businesses to obtain the funds they need for their businesses.
Loan Advisor is a completely free loan comparison site offering quick and easy access to personal loans with low interest rates from various trusted loan providers in Singapore.
If you need a personal loan to suit your unique requirements, but you don’t have time to go shopping around, try out our instant comparison service today. We’ll secure you excellent personal loans with low-interest rates and fast cash right now.