When Should I Take A Personal Loan in Singapore?  


Financially responsible means never having a balance on your credit card. But the truth is that someday you can be at crossroads and you can get hit by an unexpected financial curveball. An honest financial liability is to not only avoid the financial downfalls but also to understand how to react and work out when one inevitable financial responsibility comes on your way. You need to have the ability to handle unexpected fiscal changes and have the knowledge of what fiscal tools are available and how to use them properly. If you do not understand personal loans, credit cards, and balance transfers then you are more likely to make wrong choices in your finances making more issues or problems down the road. Personal loans in Singapore can be considered a complicated thing.

Using a Personal Loan – 

Personal loans can be considered direct and easy to know the product and it has competitive interest rates. Credit cards, personal loans, and balance transfers are 3 of the most known financial tools that are available to banking customers like you and me. Out of the 3, personal loans are one of the easiest and most stable financial solutions which is the most direct one that can be easily managed. Some of the reasons contributing towards the same are – It provides clarity by offering a fixed period for repayment. Besides that, personal loan Singapore has fixed interest rates throughout, which allows the borrower to stabilize their budget. It has low-interest rates which explain its low-cost borrowing. Personal loans are available in a different range of configurations, which means that you can get a loan according to your needs.

When Should I Take a Personal Loan? 

No matter what the popular belief, personal loans are not meant as the lender of a last resort. If used properly, personal loans can help you in any financial situation that you come into. Some of the reasons for taking personal loans are –

When Planning a Wedding

Instead of using your credit cards or feeling deprived over not having enough funds, why not take a personal loan. Cautiously plan your budget, choose a loan amount and payment period which is comfortable and go ahead and take personal loans. This way you can have your dream wedding without the need to worry about financial pitfalls. But you should know one thing your income should be around S$120,000 or more it is for Singapore citizens and PR. Plus, the annual interest rate is 20.9%.

Paying for Bills & Credit Card Loans

You have been paying endlessly for your bills but it never comes to an end. It can be because of the high-interest rates. If you use personal loans appropriately then you can stop the cycle of unending bills, especially that of credit cards. Then look for paying off your debt and choose a period for repayment of the loan and work out it. Stick to the monthly payment schedule.

Renovation of Home or Relocation

You can need a personal loan for renovation in Singapore. If you are purchasing a new home or moving into a new one then you need some money for various expenditures. For renovation also sometimes you can need some amount of money. You think of using your savings or credit card, but what if you run into an emergency and have no maxed credit or savings? So, one of the solutions is to look for a renovation loan. The renovation loan comes with a less interest rate.

Many have a question about how to apply for renovation loan? For that, you should be a citizen of Singapore permanent residence. Your age should be between 21 to 65 years. And, earning a minimum annual salary of S$24,000. If it is a joint application then, at least one applicant needs to earn this amount. Other requirements are appointed ID firm or proof of work or contractor.

Medical emergencies are also other reasons when you should take a personal loan.