There are several reasons why a person decides to take a personal loan. For instance, he might need the money for his tuition fee, for house renovation, for starting up a new business, or for hospitalization bills. The list can actually go on and on. But aside from these too urgent expenses, a personal loan can also be used for funding different luxuries such as holiday adventures and vacations. For these reasons, a personal loan seems to be one of the most accessible loans currently available in Singapore.
Personal Loan Types
Personal loans fall into two basic categories: secured and unsecured. Secured personal loans require the debtor to put up collateral against the loaned money, which can be any of his properties such as car or house. The collateral will be a form of security, and in case the debtor fails to settle his dues on the agreed date, the lender owns the right to repossess the property to recover from the losses incurred by the unsettled debt. Unsecured loans, on the other hand, do not involve any security; therefore, the lender is exposing itself to more risks. However, to make up for the absence of collateral, the lender may charge higher interest rates.
The Best Deal
Personal loan has, in one way or another, become one of the easiest ways to acquire money in Singapore. However, it is not always wise to sign just any personal loan offer that looks stellar. Remember, when making a personal loan, your best interest, as the borrower, should always be your top priority. Of course, there would be many loans that seem promising, but you should make sure that the moneylender Singapore you’re planning to pick is offering an affordable personal loan. You can tell if your personal loan is cheap by looking at its APR (Annual Percentage Rate). If the APR is low, it means your personal loan is more economical than the others.