Skip to content


July 19, 2016

LATEST SG MONEYLENDER SINGAPORE NEWS Tip for Working with Licensed Moneylenders- Understanding the Numbers LATEST SG MONEY LENDERS SINGAPORE NEWS The Truth About Personal Loans

The financial experts will tell you not all debt is bad, personal loans are useful for various life stages to help you through different stages in life or meet your long terms property investment goals.

Personal loans can be taken to purchase a property for investment as property may potentially appreciate in value over period of time depends on the market conditions.

There are many types of personal loans is taken for whatever purpose people requires. Some use it to pay tuition fees, credit card debts, other use the loans for new house renovation and to meet new expenses of a baby.

You should at least ask yourself the right questions to know what exactly you need before deciding on taking up any personal loans. There are also be extra early repayment penalty if you decide to prepay your loan before maturity.

Therefore, it is important asking yourself the right questions to determine your needs before taking up the personal loans.

    1. Do I really need the personal loans?

If the loans are taken for education, it is an investment to your future. However, if the loans are taken for a holiday, it is an expense.

    1. Am I clear about the terms and conditions of loan agreement?

Always look at the fine prints out understand all aspects of the personal loans and repayment.

    1. How am I going to repay the loans?

Understand the consequences if you can’t repay the loans. There may be an extra penalty charges can affect your credit score history.

Most importantly choose personal loans only from credible lenders such as banks or insurance companies and ensure your personal loans payment do not constitute more than one-third of your monthly income.

Depending on your needs, there are different types of loan repayment options available. Most of personal loans come with a fixed monthly instalment payment for few years, and you should commit to this agreement or risk extra penalty charges.

The monthly instalment payment is usually predetermined which gives the borrowers a peace of mind by knowing the personal loans will be prepaid over period of time.

But how do personal loans differ from credit cards? Personal loans offer a cheaper source of financing compared to credit line or credit cards.

1. Actual Annual Percentage Rate

Actual annual percentage rate is the actual cost of borrowing and its interest calculated based on the declining principal balance over the loans tenure. This means that you make monthly repayments; the principal balance is reduced every month.


2. Loan Tenure

When you considering loan tenure, it is advisable for you to take the monthly repayment commitment into consideration and take up an appropriate loan tenure based on your monthly cash flow. All the personal loan terms and conditions including computation of early settlement fees, late payment penalties, are clearly stated in all personal loan agreements.

3. Late Payment

Most personal loans stipulate late payment fees. You should go through all the terms and conditions of loan agreements thoroughly to ensure that you have clear understanding of the agreement, including conditions such as fees incurred for late payment.

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: