Understanding 5 Different Types of Singapore Personal Loans
The prevalent economic necessity has caused a rise in the amount of loan products that now exist, and the general population now demand these loan products more than ever before. Whether you are in the money lending business, or you have a quick financial issue that you want to go away, it is important that you know the different types of loan products and their subsequent categories, as it would somehow prove helpful sometime in the future. In this article, we attempt to outline these financial products and put them in the groups that financial institutions as well as niche demographics have so far affected, focusing our scope on personal loans.
Personal loans for foreigners are also known as unsecured loans as they are not secured with any asset or collateral such as your property. There are different types of Personal loans and we shall discuss some of them here:
This is loan in which an individual applies for a loan where he or she signs a promissory note to pay up at a definite time. The period of time which they attempt to pay back the loan to the actual time they actually repay the loan is called a loan term. This may vary from 6 months to 5 years. Although there are different parameters for being qualified to borrow signature loans, the criterion for loan approval is, most of the time, based on the borrower’s credit, and not necessarily on assets. They usually come with lesser interest rates when compared with other loan sub-types and are mostly borrowed from banks, savings and loan institutions, finance companies, etc.
Credit Card Loan
These loan types which are more available to the public and do not require a credit check, mostly comes with a high interest rate and also attracts other fees for getting access to the money which vary depending on the medium used to access the loan. Using check cashing systems can reduce the interest rate and other fees that you might have to pay. This money lending system was designed for short term loaning but in the tight economic situations, it may have become a more regular option.
This is a new branch that is designed to cater for the increasing expense of weddings is the wedding loan. Wedding loans can either be secured using assets or like signature loans, without using assets or collateral. The criteria for securing this loan would depend on the financial status of the borrowers and the amount needed.
Cash Advance Loans
This is one of the easiest to secure loans as all that is required is prove of identity, prove of income and an account. Having a check is also required to secure the loan, but many who do not have it have still been able to secure the loan. However, a fast cash advance loan can be very expensive as it requires only a short time to pay back, mostly from one week to a couple of month, and in most case, you would have pay before securing it.
Automotive, Motorcycle, RV AND Boat loans
These types of Personal loans are not only signatory loans but also require assets and collateral for securing them. This is money requested to buy a car, motorcycle, boat or any other vehicle desired, and they come with a loan term that usually last from a year to six years.
Whether credit loans or wedding loans, personal loans have a way of caring for your personal needs when push comes to shove. However, it is important that you understand the risks involved with each loan type that you choose to secure. Sometimes, if not well considered, borrowing loans can result into more financial problems rather than solve the ones we are in.Posted on: March 24, 2016, by : papercut sg