There are many different types of loan available in Singapore to help people with different requirements. Getting loan is not easy especially if the person does not know which type of loan is right for him and which type of loan can make things more difficult. Some type of loans is particularly for some specific reasons. The interest rate for each type of loan is also different. In some cases, the law of Singapore has fixed interest rate but there are some types of loan, which give right to the lender to increase the percentage of interest rate. There are some rules and regulations for loan, for lenders as well as borrowers. The most important rule is to apply for the loan only through licensed moneylender singapore in companies. This article will describe all the types of loans and their benefits.
Personal loan
This is the type of loan through which, a person can get money for almost every purpose. this is an unsecured loan which does not require any kind of guarantee or security. The lender puts his money on risk by giving it to the borrower without holding any kind of power and that is why this loan has higher interest rates. There are two types of personal loan, term loan and the other is revolving loan. in revolving loan, the borrower will get use a specific amount of loan at one time and if he use the limited amount, he will get another limited credit as soon as he pay the previous credit. In term loan, the amount of the loan and the time to return it will be fixed.
Payday loan
This type of loan allows borrower to get small amount of loan for short time. This is the type of quick loan, which help a person to get money within a day. People apply for this type of loan when they are in urgent need of cash for emergencies such as medical bills or house repairs. In this type of loan, a person can get his 2 to 4 months salary as loan. it is important for the lender to get the proof of borrower’s employment and income to make sure he will be able to pay the loan. In addition, this unsecured loan is why it has high interest rate https://easycredit.com.sg.
Student loan
This type of loan is to help those people who are in their studying period and do not have complete university fees. This loan helps people to get higher education when they cannot afford it. People can return this loan when they go to their professional lives and start working in a full time job.
Home loan
People apply for this type of loan when they want to purchase their house. This type of loan is the longest of all and people keep paying installments their whole lives. Different people have different incomes it is important for them to apply for loan, which they can afford easily. Otherwise, they will put themselves and their families in a very bad position.
Car loan
This type of loan helps people to purchase their own car. Having a personal transport is very important now days. It is very hard to travel through public transport. It can cause more difficulty when people need to go to a place on time and they cannot wait for bus or train. To return this type of loan, different companies give different time period but maximum type of returning this loan is five years.
