Organizations offering this type of monetary assistance often work through the internet, which makes their loans a convenient and modern type of credit. One of the distinguishing features of the arrangement is the relative leniency of requirements. Sometimes, applicants rejected by banks still get a chance to improve their financial situation.
But does this mean that any borrower will automatically qualify? Of course, this is not the case. No lender wants to deal with a client who cannot repay their debt by default. Hence, although such institutions follow less rigorous procedures, they still have their criteria.
The nature of the service
As part of the arrangement, you receive the lender’s funds in the form of a lump sum. The amount is then repaid over predetermined time — typically, between 6 and 84 months.
During the agreed period, fixed regular amounts will be withdrawn from your account. As concerns the size of provided funds, in Singapore you may expect to be eligible for $2,000 — $90,000, depending on the purpose, the institution, and your individual case.
A significant advantage of personal loan Singapore is the absence of collateral. Therefore, you do not risk losing your property that serves as a guarantee of repayment. For example, a conventional lender like a bank will confiscate your home or car if it is specified as collateral in the agreement.
These loans fit a wide range of possible spending intentions.
- You may be coping with emergencies like medical treatment for an injury.
- You may feel like giving your house a makeover.
- You may even decide to pay for a wedding or honeymoon getaway with borrowed money.
Whatever goal you are pursuing, make sure it is sensible. This is not a free service. Sometimes, if you are patient, saving up makes more sense. Reckless clients may get sucked into the vicious cycle of repetitive debt.
Will You Get the Green Light?
The provider will examine your background to see if you are capable of repaying your debt. This means they are bound to consider your credit score, as well as your source of income. If your prior experience with loaned money is far from perfect, you may be offered less advantageous conditions.
The exact requirements vary from lender to lender. Some may accept no less than 700, others are more lenient. This score is quite telling since it demonstrates your ability to handle debts effectively.
In terms of age, the average bracket is between 21 and 65 years old. Other specifics, like extra fees and payment methods, also vary.