Being in need of money can be a difficult issue, especially when you are not one who fancies taking loans. But the reality is that there are loans tailored for different financial situations, and you might not need to borrow a large sum of money if you do not need a large sum of money.
So, what are the types of financial loans that you can take up in Singapore? Are they fast loans or not? Let’s take a look at them below.
Personal loans are one of the most common loan types in Singapore. Financial predicaments are often unexpected, and it can be a struggle if someone does not have the funds needed to help them through it. A personal loan is a small loan account that does not need a guarantor or collateral generally and is considered as an unsecured loan. Additionally, you will need proof of regular income and a positive credit rating to have a successful personal loan application.
Personal loans are suitable for many situations, but borrowers must be able to pay them back on time to avoid incurring penalties.
Payday loans are one of the fastest short term loan types that allow you to borrow money in situations where you need emergency funds quickly, and your salary is not due for a period of time still. This type of loan is immensely helpful for people who suddenly need funds for emergency medical services, a sudden need for urgent purchase, or even for daily expenses. Payday loans are essentially utilised for short-term needs, and an arrangement is usually made to pay it back on the borrower’s next payday.
It should be noted that payday loans are not feasible or encouraged for leisure purposes such as travel trips or to fund a luxurious lifestyle.
Entrepreneurs or businesspersons who need funding for a business venture or expenditure often take business loans. There will always be costs involved in a business, and sometimes business owners may not have enough capital or might experience a lack of investors, so licensed moneylenders offers a helping hand in providing business loans for them. This type of loan is often used to purchase new machinery, stock, or even hire new employees.
For a successful business loan application, it’s necessary for the applicant to have a good credit rating and a solid business plan. In general, business loans will also need a co-signer or collateral, but this may differ for each moneylender.
Debt Consolidation Loans
This is a special type of loan that enables borrowers to gather and consolidate their various debts into a single payment plan. Trusted and licensed moneylenders extend a helping hand with this type of loan as a way to help financially-disorganised people regain balance with their finances. As different loan repayments can balloon uncontrollably, debt consolidation loans enable the borrower to manage a single point of contact only, allowing better control and lesser paperwork to deal with overall.
Debt consolidation loans are great for helping someone visualise an end to all their debts, and with the help of licensed moneylenders, it gives a new lease on life for them.