Are you in urgent need of money? Are you looking for financing options that will take care of your interest rates and also quick approval? If yes and if you live in Singapore, then here is an ultimate solution for you. You can easily get low interest rates and fast approval loans in Singapore without much hassle. The only thing you need to know is the detail that is required to be aware of the type of loans and their processes. Though getting some money from your friends and relatives may sound better since they don’t charge any interest rate at times and also don’t pressurize you for details, yet a bank is always one that won’t make you feel it has done some favor to you.
The types of loans
There are different types of loans that you can aim for in the market. The two primary kinds of loans are term loans and credit loans. These days, it is possible to get low interest rates and fast approval loans in Singapore so easily that people usually ignore the types. A term loan is basically a fixed loan that has a fixed plan for repayment. Moreover, you will have to agree to the plan even before you see the cash in your hands. However, you can be assured that you can pay back the loan slowly at your own comfortable pace. The interest rates are also quite low.
A credit loan, also called personal line of credit, is one in which the payment is flexible. It is a kind of revolving loan and a pre-approved sum of money is cashed out to you entirely or partially. However, the repayment of that sum has to be done as soon as possible, or else you may end up facing extremely high-interest rates. If you are not confident that you can pay back the money immediately, then don’t go for this. There are better options, like term loans, that offer you low interest rates and fast approval loans in Singapore.
The length of tenure
Tenure of a loan is also an aspect that requires quite a lot of attention. The term loans span usually over 1-7 years. But you will have to agree on a tenure before you can go for a term loan. This is where low interest rates and fast approval loans in Singapore provide a catch-22 situation.
- If the tenure is long, then the monthly installments will be less, but overall interest money will be high.
- If the tenure is short, then the overall interest payment will be less, but the monthly installments will be high.
It is always advisable to choose the shortest tenure possible. See how much monthly installment you can afford and then make a move to get the best low interest rates and fast approval loans in Singapore. It is always better to get rid of the loan repayment as soon as possible. This ensures that you end your liabilities at the earliest and lead a better life.
Types of interest rates
The loans always come with two types of interest rates mentioned. One is the interest rate that is written in bold and large fonts to attract the customers. This is simply called the “interest rate”. This is calculated by simply dividing the interest money by principal amount. However, here is another catch which exists in many low interest rates and fast approval loans in Singapore. The Effective Interest Rate (EIR) is the interest rate that is written in a different font color (usually a lighter one) with smaller font size. This is the one calculated by incorporating the processing fee and the repayment schedule. Therefore, be careful of what is being offered to you on the plate. The low interest rates and fast approval loans in Singapore often don’t reveal the EIR straightaway and you may need to ask about it to the bank authorities. The calculation of EIR is quite complicated and it requires you to sit with an expert on loans. Take for example, you have borrowed $500 for one year and you repay it at the end of the first year. This means that you will be richer by $500 for the entire year and then pay it immediately. However, if you start repaying from the first month itself in the form of monthly installments, then you will be rich the first month and going forward, you will grow poorer. This is what EIR takes into account. Therefore, get the low interest rates and fast approval loans in Singapore only after due consideration.
Companies in the arena
There are a couple of companies that can offer you the best low interest rates and fast approval loans in Singapore. The few companies are as follows.
- Standard Chartered
- Bank of China
The list may go even longer if a few other players are added, but we have tried to give you the names of the best providers of loans.
The documentation required for availing the loans is pretty much the same as in the other banks. You will need residential proofs, ID proofs, salary slips and other concerned documents. Some banks may take a lot of time in processing the loan, and therefore, you must be wise enough to choose only those banks that give low interest rates and fast approval loans in Singapore.
To get the loans quickly, you simply need to surface all the required documentation and get all the formalities completed as soon as possible. You may need to keep some collateral if needed by the bank’s terms. However, getting a loan quickly can ensure that the purpose of the loan is served quickly. You may need it for home construction and renovation, or for buying car, or for child’s education, or even for medical and personal use. Get the best loans at the earliest form the best providers and let your dreams be achieved as soon as possible. Let shortage of money be not the reason behind any dream unfulfilled.