How to Choose Personal Loans | Choose the Best Personal Loan in Singapore

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Are you looking to take up a personal loan? While personal loans will help you ease out your immediate cash flow, you must do your market research and apply for one that suits your needs. In this blog, we tell you how to choose personal loans in Singapore?

How to Choose Personal Loans in Singapore?

Things to Keep in Mind for Personal Loans

Prepare a repayment strategy

Before applying for a loan, always make a proper repayment plan. Don’t just borrow money and assume you’ll be able to pay it back somehow. That is the exact way one loan can lead to another. It eventually becomes a vicious circle. As a result, borrow only when absolutely necessary, and be certain that you understand how and when you will repay the loan. These are the consequences of missing loan payments that you should be aware of.

Take note of any early repayment penalties

If you intend to repay your personal loan in full ahead of schedule, look for options with low or no early repayment penalties. Early repayment fees are also known as early redemption fees, cancellation fees, or termination fees.

A lower interest rate does not always imply a less expensive loan

Aside from the fixed interest rate, keep in mind any upfront processing fees, annual fees, and other additional charges. Because these costs are included, the effective interest rate (EIR) for a personal loan is always higher than the advertised flat interest rate. Before applying for a personal loan with the lowest interest rate, carefully review the offer and terms and conditions.

Always pay off the loan in full before the promotional period expires

Take advantage of the banks’ various promotional offers, but keep in mind that it is a loan — and, as with all loans, always repay the full amount before the promotion period expires to avoid high-interest charges.

How to Choose a Personal Loan for You?

While doing your homework can be tedious, you can take the help of our experts to guide you in the process. You can reach out to us here. Weigh your priorities to help you narrow down your options even further. Here are some questions to consider:

• Is it most important to you to have the lowest interest rate and EIR?
• Do you require a loan with a term of up to seven years?
• Are you willing to pay a processing fee?
• How quickly will the loan be disbursed?
• Do you want a loan with a low or no early repayment penalty?
• Can you apply for the loan as a foreigner?
• For example, if you’re looking for the cheapest personal loan in Singapore, the HSBC Personal Loan is a good option.

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