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Different Kinds of Loans That Moneylenders in Singapore Can Offer

Posted by : Premraj | Posted on : Tuesday, July 2, 2019

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Every loan has its purpose and differences that set them apart from each other. Choosing the right kind of loan for you is important as the terms and conditions of each loan can be different from each other. If you want to avail for a loan, then you must have a general idea as to what are the different kinds of loans that moneylenders in Singapore offer.

SALARY LOAN/PAY DAY LOAN

What is a salary loan?

A salary loan is a loan that is availed by borrowers, which they must pay in full or in installments when they receive their next salary. The amount that borrowers can get from this loan is relatively small and, from the name itself, is dependent on the salary that is earned by the borrower.

What are the uses of a salary loan?

Most of the time, salary loans are availed by borrowers to pay urgent bills, school bills, travel, medical expenses, car repairs, and other financial shortcomings.

Unsecured or secured loan?

Salary loans are unsecured loans, which means that you do not need to put up collateral to avail for this kind of loan. However, it is still important to read the terms and conditions of the contract before you sign it.

Before you avail for a salary loan…

Most of the time, this kind of loan has a high-interest rate. Before availing for this type of loan, make sure that you can pay the loan on the due date. Moneylenders can charge a penalty fee if you are late in paying.

PERSONAL LOAN

What is a personal loan?

Most of the time, people confuse salary loans with personal loans. While the purpose of a personal loan can be the same with a salary loan, the repayment of a personal loan is not made by deducting from your salary, which means that you need to pay the loan personally based on the agreement between you and the moneylender. A personal loan can offer you a longer repayment plan, and you can pay through other means.

What are the uses of a personal loan?

The use of personal loans can be the same with salary loans.

Unsecured or secured loan?

Like salary loans, personal loans are unsecured. However, it is still important to confirm it with your moneylender.

Before you avail for a personal loan

Like the salary loan, personal loans have high-interest rates and penalty fees if you fail to pay the loan in time.

BRIDGING LOAN

What is a bridging loan?

Bridging loans are short-term loans that are availed by borrowers to help them while they are waiting to be refinanced or to have larger financing. Bridging loans are common for those borrowers who want to purchase a second property while they are waiting to sell their existing home.

What are the uses of a bridging loan?

Most commonly, bridging loans are used by borrowers while they are waiting for their existing home to be sold. Other uses of bridging loans are for home renovation, purchase a property at an auction, land development, and among others.

Unsecured or secured loan?

Most moneylenders in Singapore can offer you an unsecured bridging loan. However, if the bridging loan is a secured one, then they can make your existing home as collateral.

Before you avail for a bridging loan…

You have to remember that the longer it takes for you to sell your current property, the more penalties and interests your loan will generate if you fail to make any payment. Be sure that you can make the payment when it is due.

FOREIGNER LOAN

What is a foreigner loan?

From the name itself, foreigner loans are loans offered to foreigners who are working, studying, or living in Singapore. Foreigner loans are akin to personal loans that are intended to help the financial needs of foreigners in Singapore. With regards to the interest rate, moneylenders and banks can charge you with a high-interest rate because of the high-risk nature of the loan.

What are the uses of a foreigner loan?

The uses of foreigner loans can be the same with salary loans and personal loans.

Unsecured or secured loan?

Foreigner loans are unsecured loans, but banks and moneylenders may require you to have a guarantor.

Before you avail for a foreigner loan…

Keep in mind that foreigner loans are a huge risk to banks and moneylenders, which should not surprise you if they will require documents proving your status. When applying for a foreigner loan, only apply with banks and licensed moneylenders.

BUSINESS LOAN

What is a business loan?

If you are looking to finance a startup business or to pay for your business expenses, then business loans are the ideal loan for you.

What are the uses of a business loan?

From the name itself, business loans are for business purposes like to purchase equipment and inventory, to increase capital, to make salary payments, and among others.

Unsecured or secured loan?

Most moneylenders offer an unsecured business loan but remember that the terms and conditions will depend on each moneylender.

Before you avail for a business loan…

Before you avail for a business loan, remember to compute the amount of money that you truly need. If you availed for an amount that is more than what you need, then it can be disadvantageous for you. The amount of your loan will depend on its purpose. What will you do with the money? Can it generate more profit for your business?

LOOKING FOR A LOAN?

When availing for a loan from a moneylender, one of the most important factors in choosing a moneylender is to transact with a trusted and licensed moneylender. If you are looking for one, then look no further! At A1 Credit, you can avail for a fast and easy loan. The moneylender offers a variety of loans that you need.

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