Three very common types of loan available in Singapore

Three very common types of loan available in Singapore

People get loan for many reasons. When they need money for something and do not have any other source to get it, they borrow money. There are banks and money lenders and a person can borrow money either of them. Borrowing money can be very difficult and it can put a person in a bad situation, if the borrower does not know the right way of taking the money or he does not use it properly. People take money to solve their problems, which require urgent attention. They also use it to buy home or buy a car. There is also student loan, which is being given to people who are still studying to pay their fees.

Personal Loans in Singapore                                                                              

Personal loan is a type of loan through which a person can get money for almost everything and purpose. This is a unsecured loan. There are two types of personal loan with different conditions. First type of personal loan is term loan. In this type, the time of returning the money will be fixed. Even installment time will also be fixed. In this type of loan, it is important to return the money on fixed time.

The other type of personal loan is known as revolving loan or it is also known as personal line of credit. In this type of loan, the borrower gets the limited credit. People can use this credit any time they want. But a monthly payment of 2.5% or SGD 50.00 will have to be paid. After using his limit once, he will be able to get another limited credit as soon as he will pay the previous credit. In both types of loan a Singaporean needs to have monthly income minimum SG$20,000. If a person lives and work in Singapore but he is not a native, he can apply for personal if his monthly income is at least SG$40,000

Home Loans in Singapore

Many people thing that home loan is most expensive type of loan and it goes on and on for whole life. People apply for this type of loan when they want to purchase a home for themselves. It is the type of loan; people apply for when they do not have the whole amount for the loan at hand. This type of loan can be used to purchase any type of property such as flats and all kinds of private properties, which are fully constructed or are under construction. This type of loan also has interest rates. Before going for the loan, it is important to find out how big house you can afford with how much money. It is not a good idea for a person to apply for loan, which he cannot afford from his monthly income.

Renovation Loans in Singapore

This type of loan help those people who want to renovate their properties or buildings such as offices or houses or other places they own. In this type of loan a person can get money from SG$10, 000 to SG$30, 000. The time of returning the loan can be up to 5 years. The interest rate of this loan varies company to company and moneylender to moneylender.

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