Personal loans in Singapore can be obtained from three distinct quarters: banks, financial institutions and licensed money lenders. Although the fundamental idea of offering loans remains the same across sectors in Singapore, each loan providing entity will be different in its own way. Not all banks, financial institutions and money lenders offer personal loans in Singapore, so it’s important to arrive at a match between your loan requirements and the loan offering entity. Never be tempted to obtain a loan from anyone who is not licensed to offer a loan.
Let’s look at a few pointers that one needs to consider
- Pick up a loan amount that you are able to pay, easily and consistently
- A low rate of interest need not always mean a good deal. There can be default fees, other hidden penalties and the rate of
increase in your interest if you happen to default matters
- Decide if you want a fixed flat interest rate or a reducing interest
- Find out if there is an early closure fee
These key pointers apart, as a rule try to borrow from banks as much as you can, because established banks usually have their regulated norms and come under scrutiny constantly. They cannot afford to be arbitrary in their interests and policies. Money lending institutions however need not be that careful.
Luckily in Singapore, it is easier to obtain a personal loan than any other loan and there are a whole lot of loan providers. Skyline credit, Credit assist and JR Star credit are some of the known names in the licensed money lending segment in Singapore, while HSBC, ANZ Singapore, and Citibank are a some of the well known banks that offer personal loans.
Citibank Personal loans have installment choices up to 60 month tenure, an option private moneylenders might not have. Bank’s Loan interest rates too, like Citibank’s, usually reflect the averages prevailing in the market and cannot be arbitrary, while a private lender can set their own norms.
Even though in Singapore the business of lending is strictly regulated, it is always best to go with established names and not fall for the famous “ unbelievably less interest rate”. Some banks also call you and speak to you in detail if you fill up relevant information online, and personally I think its the right way to go about it, by having a detailed chat before taking a decision.