Things to consider before availing personal loans from moneylenders

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.