5 Things You Don’t Know About Personal Loan

Do you intend to get a Personal Loan on your name? If yes, then you are at the right destination for it. This is because a Personal loan seems great when you look at it from a distance. At the end of the day, it is a debt loan which has to be repaid with the addition of Interest rate. A personal loan is a great option for many purposes which also includes the Consolidating other debts etc.

Due to the multiple purpose nature of this loan, there is no need for you to worry about its safety. In case of any non-payment or fraud, things might be bad for you. A personal loan is for a resident, nonresident, unskilled worker and also a loan for grab driver. There are few things which should be cleared to you. This is because a clear and informative mind is required for getting a Personal loan. Therefore, in this article, we will take a look at things you don’t know about a Personal loan.

The higher amount of money can become an issue

  • You would have heard about the fact that a Personal loan does not require any legit purpose. Being a convenient type of loan, it can be taken out by anybody. Also, the limit of getting a Personal loan is also not an issue while opting for it. There is no need for you to opt for a higher amount of loan, which can be a huge issue for you. The amount of loan cabs becomes a debt on your shoulder, which is to be repaid with the addition of Interest money.
  • You should take a loan of the amount which is required by you and not just for getting the money. While getting a Personal loan, you should keep the greed out of your head. A loan should be taken on the basis of requirement and not on the basis of greed. In this case, the koan can be easily paid if the amount is less and also the interest money will be convenient.

Security against the Loan is not mandatory

  • There are some clauses of a Personal loan too, which is not a big issue. This is because, in comparison to other types of loans, these cases are not that harsh. You should know that a loan is issued only after a personal property is lent or given as a security against the loan. In this case, you need to have a personal property on your name, which will be used as a security against the loan. This is not applicable in the case of Personal Loan because it is for the convenience of potential loan holders.
  • A personal loan does not have the compulsion of snatching away a Personal property to get a loan. In this case, you should know that any loan provider asking for personal security as a compulsion is a fraud. This states that getting a Personal loan without lending security against the loan is possible.

Different rates according to income

  • If you are thinking that getting a Personal loan in Singapore is easy, then tighten up your guards. This is because you were wrong and also some things are not known to you. A Personal loan is indeed for intending loan holders who do not want to get in complicated legal procedures to get financial assistance. This states that a Personal loan can be a huge help in your requirement of money. The thing you should know about is the rate of interest which he will be charged on the amount of loan. There are some terms and conditions which are applied on a Personal loan.
  • The annual in income for getting a Personal loan in Singapore should be above $20,000. This figure holds significant importance because, without this. You will not get a Personal loan in Singapore. Also, the rate of interest will be charged on the loan figure and also on your income in addition to that, if the annual incomes more than $30,000 the rate of interest charged will be lesser than the rate of interest in the previous case.

A personal loan is issued on the basis of Nationality

  • This might sound a little absurd but loans are issued after considering the Nationality too. The major reason behind this is the situation of non-payment, where the loan receiver gets out of the country immediately. In this case, Personal loans are also quite hard to get if you are not a citizen of Singapore. There are many complications which can arise in your way to get a personal loan. You should know that there are certain figures which are used to allot a loan.
  • As we have mentioned in the above section, annual income holds significant importance. In addition to that, you need to disclose your income coming not from Singapore. There is a personal loan limit Singapore where you have to opt under the limit offered. To be more precise, if you are not a resident, you need to show an income of more than $20,000. Therefore, you should know about the nonresidential loan allotment process.

A personal loan is more than a Loan

  • You should know that a general loan is a debt which is on your shoulder till it is fully paid back with respective interest rate. Talking about a Personal loan, you can use it for many purposes. There is no compulsion on using the money received from a Personal loan for a specific purpose. There are three major types of Personal loans in the market right now. You are free to opt for any type of Personal loans according to the purpose. You can use this money for debt consolidation where you are stuck in debt.
  • Multiple loans result in multiple debts and also multiple interest rates. This is quite tough for anyone to repay the money at different rates of interest to different money lenders. A Personal loan can repay the money to all the banks you owe. This makes it very easy for you to pay back money only to a single moneylender at single rates on interest.