Nowadays you will get
at least one mail about instant or pre-approved personal loans in your mailbox.
The team that is working in the money lending companies and the financial
intuitions can make you feel that the offers are customized for you to provide
financial support.
But you have to select the personal loan from the
moneylender who is offering the best service.In Singapore, you can cross with
so many financial intuitions and money lending companies. All you need to do is
go through the terms and conditions of Personal loan Singapore. Several things
should be considered before you avail of the personal loans from money lenders.
At the end of this article, you will get to know about those things. So spend
some time in this article and read the following content.
Don't go with lower interest
rates
You have to read about
personal loan terms and conditions. You should make a comparison between
interest rates and choose the interest rate wisely. The personal loans are
usually offered with higher interest rates. This is because no collateral
properties are involved in the personal loan and the moneylenders will be at
higher risk when the loan applicant has failed to repay the loan amount.
Assess all-in cost
Before you are going
to apply for a personal loan you have to look for the money lenders who are
free from any additional payments. There are three types of additional payments
are available in the personal loan. They are processing fees, prepayment fees,
and late payment fees.
Processing fee
Generally, the money
lenders will charge 1-2% of the loan amount as their processing fee. Even some
money lending companies and the financial intuitions are charging flat
processing fees. The charging amount will be added to the total cost of the
loan.
Pre-payment fee
Sometimes you will
apply for the personal loans to get out of the cash flow crunch. In such
situations, the pre-payment fee is used for improving the cash flow. If you are
taking the personal loan with a prepayment fee, then you can save the absolute
interest cost. It is a key tool that is used for the borrowers to stay in the
loan and bear the full interest cost. So before applying for the personal loans
from money lenders you have to check for the pre-payment policy.
Late payment fee
This is another and
common asset payment fee. If you are failed in repaying the amount in the
scheduled time, then a late payment fee can be used. If you are in a struggle
to improve the cash flow, you can consider this low payment fee.
Many money lending
companies are having these assets options. Easy Find is one such lending company that is using these
above-mentioned payment methods.
Consider the needs and
not the eligibility criteria
You have to borrow the
loan amount that should meet your needs and requirements and not your
eligibility criteria. Even though you are capable of getting the higher loan
amount, it is recommended not to go with the higher amount and go for the loan
amount that is needed for satisfying your requirements. If you are buying the
loan amount than you need, then you have to pay the interest for the money that
you don’t need.
Go for better rates
While in the repaying
process, the interest rates are playing a major role. The moneylenders will
recommend the rates based on the credit score and the loan applicant's income.
If you are maintaining good credit scores, then you will be having better
interest rates.
Know about your
repayment ability
Only you can predict
the repayment ability of your own. Even though the money lenders and the
financial intuitions are looking at the credit scores, they do not know about
your repayment capacity. If you feel you cannot service the EMI's of the
personal loan, then it is recommended not to take the personal loan. Once you
have failed in the EMI's payment, it will affect your credit history.
Avoid additional
offers
When you are going to
apply for the personal loans, you may come across several additional offers.
Learn to say no to the additional offers. If you are going with additional
offers, then you have to pay for it unnecessarily. Even though the circumstance
is focusing you to choose the additional offers, but in the end, you are the
only person who is going to get blamed. Additional offers are one such example,
there are many types of on-off offers are available in the financial
intuition.
Last few words
The above-mentioned
are the things that should be considered before applying for personal loans
from money lenders and financial intuitions. It is recommended to go with the moneylender
who is offering the best personal loans.
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