Personal loans refer to those amounts that are granted by banks or other finance entities to fulfill human wants and necessities. The borrower is obligated to repay this amount to the lending authorities after a reasonable span of time. Of course, the borrower is expected to pay a small amount of interest on the principal amount loaned in terms of small installments.
Personal loans are perhaps one of the finest offerings of Moneylender which have endeavoured to make man’s life easy. This particular loan proves greatly beneficial to people who have insufficient funds and their daily needs exceed their incomes. A Personal Loan is mainly a short term loan. Ideally, personal loans are small amount loans and are to be repaid in a short span of time -which is usually not more than 3 years.
Personal loans fall under the wide umbrella of loans of such kinds as personal, Payday Loan home related or family loans. They could be for items such as Electronics -laptops, cell-phones, refrigerators, air-conditioners etc; or lifestyle items such as wardrobes, furniture and other such interior items.
General benefits of Procuring Personal loans
Competitive interest rates
The Rate of interest for personal loans is relatively lower as compared to any other types of loans. Since the amounts are also ideally small, procurers do not feel the weight of a burden on their shoulders. The installments are to be paid from their regular incomes and the amounts of installments are ideally small and manageable.
Quick and hassle free application process
It is relatively easy to procure a personal loan. All that needs to be done is filling in a form which asks for general details like the borrowers name, address and monthly income and a possible introducer who will vouch for the lender. Simple isn’t it? The loan is approved, within a couple of days, depending upon the lending body.
Fixed minimum monthly repayments which enable effective budget planning
Most lending bodies authorize the lenders to decide the payable monthly installments. Borrowers can choose from various schemes and pick a repayment mode that suits their pocket best. Of course, the more the number of installments, the higher the interest rate. The key point is that borrowers are aware of the amount that is to be paid in monthly installment and can plan their budgets accordingly.
Money is transferred directly into the borrowers’ personal transactional account
Once the loan is approved, the money is directly transferred into the regular savings account of the loan procurer.
No early termination fees for paying off the loan earlier
Most financial bodies waive off any charges on loans that are paid off before the stipulated time. This means no additional expenses on the pockets of the loan procurer.
Personal loans, unlike other loans do not require the borrowers to produce any securities since they are ideally small amount loans to be paid off in small installments. These can be obtained in spite of borrowers having bad credit.
Borrowers save themselves the expenses of paying commission agents or middle-men. There’s some extra dollars saved!
Most Banks (especially the ones in which borrowers have a savings account) are always ready to come forward and help the borrowers. The Personal Loan is approved in a matter of a few days and the finances are back on track!
The borrower is required to fulfill simple eligibility criteria such as being an employed adult earning a fixed monthly income, residing in Singapore and willing to repay the loan in a stipulated time.
Finance Gurus advice that it is wiser to avail a personal loan rather than build up additional credit on the credit card. The interest rate on the personal loan is way lower compared to the interest that accumulates upon using a credit card.
A personal loan is not limited to a financial emergency. One can easily obtain it for other expenses -a holiday, paying off credit card bills, hospital bills or for household expenses.
It is rightly said that life is unpredictable. One cannot foresee the future or be prepared for situations of crisis that arise out of the blue. This rule is applied to the present economic climate too. It is highly unstable, and unexpected financial emergencies can destroy the normal budget. In such a case, getting a personal loan is the best choice!