The continuing economic development and rapid modernization of technology, transportation, infrastructure and science have affected the lives of most families. The need to cope with these developments has put a financial strain on individuals thereby leading them to look for other sources of income such as borrowing money from conventional and alternative lenders. The need to modernize has led people to apply for the best personal loan singapore without thinking twice about its financial repercussion.


Things to Put in Mind before Jumping in the credit pool


Consider the following; when you borrow money, there will always be an interest involved so no matter how sweet the deal is you still end up paying for more than what you have received. There are also processing fees, surcharges, penalties and other related expenses involved even before you get the loan. Second, when you file for a loan, your credit rating will be affected. This will not be a problem if you are disciplined enough to religiously follow the repayment terms but there is always that risk that something might happen along the way that intentionally or not you are not able to repay the loan. Third, borrowing from friends and family members, is also a never good idea. Borrowing money from friends and relatives is perhaps the least advisable thing to do. Money matters always put a strain on relationship. How many times have you heard of siblings fighting over money or parents suing their children because of financial matters? Fourth, borrowing money will tie you to a contract that you may find later to be very hard to follow. Once you sign the loan agreement, you are obliged to follow the same to the letter. Finally, borrowing money will surely put a lot of stress in your income management. Since a loan is an obligation it is necessary to put a priority on its payment. You will therefore need to reconstruct your expenses and more often than not you end up sacrificing a lot of necessities just to follow the loan contract that you’ve signed.

Personal loan is considered to be one of the most accessible and easiest to manage type of a loan that an individual can avail of. Personal loans are usually divided into two general categories namely long term and short term loan. Applying for a long term instant cash loan is the better choice basically because the loan is provided by established and conventional lender such as banks, credit unions, and other large lending institutions. Big online lenders are also said to be a good source for long term personal loans.


The Basics of Long Term Loans


As the term connotes, repayment terms for this kind of loan is basically longer than other loans. One might think that the longer you pay for a loan the more interest it would incur. Unless the interest rate is compounded, no matter how long the term is, the borrower will not be paying more than what he has bargained for. On the contrary, longer payment will give him more time to manage his income thereby allowing him to maximize the loan amount he has gotten. Also, since the loan will be provided by banks and other established commercial lender, there is a possibility that you will be able to negotiate a reasonable amortization for the loan amount.


Secured and Unsecured Loans


Long term loans can be secured or unsecured. Applicant for long term personal loan can easily get a sizable amount by providing assets as collateral for the loan. Properties such as house and lot, expensive cars, arts and even stocks can be use as security for the loan. With a secured long term loan, BORROWING a sizable sum of money from the lender will not be a problem. Aside from this, if the asset being secured is a lot more valuable than the amount being borrowed, there is a good chance that the borrower and the lender can come to a very reasonable agreement relative to repayment terms, interest rates and amortization amount. For long term unsecured loans, negotiation regarding interest rates and amortization may be quite limited considering that the borrower will have nothing to bargain with except his credit rating.

BORROWING cash from conventional and alternative money lenders have now become a common occurrence. Advancement in society is making it difficult for an average earner to cope with the continuing modernization and this is the reason why there is a need for him to come up with subsidiary income other than what he is earning as a regular worker or businessman. Cost of convenience such as cars, educational expenses and other family necessities have paved the way for individuals to file for various PERSONAL LOAN to finance expenses such as those mentioned above.  Personal loans are perhaps one of the easiest to access because they specifically tailored to finance multi-purpose expenses. This type of CREDIT can either be short or long term; secured or unsecured and comes with a variable or fixed interest rate. It is also one of the few loan systems that are easy to transact especially if the loan applicant is well known to the lender. This is especially true for individuals who have sizable amount of deposit with a particular bank. Big depositors are easily approved by the bank once they apply for a personal loan.


Can Anyone Apply For a Personal Loan?


As long as you’re a working adult with a steady income and preferably with a good credit rating and history, your chances of having a personal loan approved is high. However, you must understand that if you file for unsecured personal loan, you may incur higher rate of interest. Secured personal loan have lesser interest rate but there is a risk that you may lose your collateral in the event of a default in the payment of your loan.


Why Apply for Personal Loan?


Compared to other types, personal loan has been known to be the easiest to avail of and the safest. Even if your credit rating is average or a little below, chances are you are going to be approved. However, expect a higher interest rate markup. The main advantage of personal loan is that you can use it to pay other debts thereby consolidating all your debt into one. This method is also a way for you to increase your credit score ratings.

A common type of loan that many individuals avail of is personal loan. What really is a personal loan? According to Business Dictionary (BD), personal loan is a type of borrowing where an individual is granted a consumer loan specific for personal expenses (medical), family expenses (education), and/or home improvement expenses. The loan is either unsecured or secured by assets of the borrower. In some cases, the licensed money lender singapore will require the borrower to have someone co-sign the loan. Unsecured loans also known as signature loans are advance loans, because its approval is based on the borrower’s credit history, rating and ability to pay back the loan from his (the borrower’s) personal income. Repayment schemes for this type of loan are normally via fixed amount amortization with terms of six months to a few years, depending on the loan amount involved.


Unsecured Loans


Personal loans are usually categorized as secured or unsecured. Because there is no collateral attachment to unsecured loans they are usually allotted to people whose credit ratings or scores are more than above average. Most lending institutions such as banks are very careful in providing unsecured loans unless the applicant is well known to the bank or preferably a long time client and/or depositor of the bank. They also make sure that the applicant has proof of more than enough monthly income to cover the amortization cost of the loan. Since unsecured loan is not tied to any collateral, this type of loan usually incur a higher degree of interest. CREDIT cards are classic example of unsecured loan.


Secured loans


Secured loans are easier for borrowers to access. As long as the applicant is able to secure the loan with collaterals, chances are the loan applied for will be approved. Most banks would require that the collateral be of the same value or higher as that of the amount being applied for by the borrower. As compared to an unsecured loan where the risk is burdened on the lender, risk on secured loans is placed on the borrower considering that he (the borrower) may lose the asset he had secured in the event of a default.

We have earlier discussed the general benefits derived from availing payday loan sg. However we are all aware that there are two sides to everything that exist in this realm. Payday loan is no exception. Although, this type of loan is generally beneficial to individuals who have limited access to conventional borrowing, we cannot deny the fact that if accessed improperly; the borrower may end up getting himself into more financial mess. Let us therefore discuss in detail the advantages and disadvantages of availing payday loans.




Because of the loan’s easy accessibility especially to the low income group and low credit rating individuals, the loan is an ideal way to solve and cover immediate financial requirements.  The very few requirements demanded by the payday lender, makes it quite easy for the borrower to get his needed cash at the opportune time. The loan also guarantee discretion considering the loan arrangement is only between the borrower and the main lender. Second, some payday lenders, gives the borrower an option whether to secure the loan or not. Having it secured will allow you to get your loan faster and with less interest unlike if you borrowed without putting up collateral. Third, payday lenders usually offer short term loans thereby encouraging you to budget your income to ensure that you will be able to pay on time. Finally these types of lenders normally set the maturity date on the time that the borrower are normally liquid such as the end of the month where monthly, bi-weekly or weekly salary is due.




Payday loans are normally suited only for small to medium cash requirements. They are more suited for immediate cash requirements such as to augment the family’s monthly expenses. If ever the borrower is able to get a sizable amount of money from payday lender, it is for sure that he may end up paying for unexpected high interest on the loan. More importantly, credit ratings of individuals can be greatly reduced in the event that he (the borrower) is charged with late payment penalties by the payday lender.

The word LOAN on lettered dice on stacks of gold coins isolated on a white background.