What is Personal Loan and Where to Get it in Singapore?
There will be times that you will need a certain amount of money, but your savings is not enough. It is money borrowed from a bank, or moneylender, etc. The money can be borrowed for any reason.Personal loan can help in cases of emergency. Personal loan is unsecured and can be applied whenever needed. It is unsecured that does not need collateral or any fixed assets. Personal loan has its terms and conditions too, but it does not require much paper works and verifications compared to other loans because it does not involve fixed assets. It has higher risks for the banks because it does not have collateral. To offset the possible risks, the banks tend to charge higher interest rate for personal loans than other types of loans.
Application of personal loan may vary depending on the country you will be applying it. There are different ways on how to apply for a personal loan depending on the bank, moneylender or any union that you will be borrowing the money from. Regardless of how there are requirements in applying for a personal loan:
1. Have good credit. As mentioned earlier, the banks have higher risks for personal loans. What they do to offset the possibilities is they charge higher interest. They need to be assured that the borrower is credible, capable, and responsible for paying. The purpose of checking the credit history of the borrower is to determine whether to give a personal loan and what interest rate.
Even though it is necessary to have proper credit in applying for a personal loan, the bank loan is stricter when it comes to this. In Singapore, some people may turn to legal moneylenders instead of banks.
2. Valid IDs. This is very common. Valid IDs are the requirement on any application you will do in life. This is to avoid any identity theft or fraudulent act to the customers. Moreover, this is also for the bank to secure the identity of the borrower; so that they will be able to record and track the details of the borrower.
In Singapore, NRIC is a major requirement in applying for a loan. It has 9-character alphanumeric issued by the Singaporean government. It is an identity document used in Singapore. For personal loan applications, that is the first requirement in filling out forms whether it is an online or hard copy.
3. The minimum amount of income. This may vary depending on the amount of money you will be borrowing. This will also depend on the terms of the bank, money lending or other unions you will be borrowing the money from.
Furthermore, there are platforms and websites in Singapore that will help you find personal loans that will match your requirements. They will help you have an easy loan application with quick approval. You can either go personally to a bank or moneylender office to fill out the application form or go online. Whatever you think is more convenient for you, do so.