How to Borrow Money When Needed
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These days, paying off a debt is becoming more and more troublesome. According to a survey conducted among 1,000 Singaporeans, 16% have taken out a loan at some point. Given the state of the global economy, it wouldn’t come as a shock to see the numbers grow.
When it comes to making ends meet, borrowing money from financial institutions is prevalent over asking friends and family to lend a hand. Just as there are many options to borrow from, there are also several ways to borrow money, depending on how much you are looking to borrow, and so on.
Continue reading to understand how to borrow money according to your financial needs, as well as where to find a reliable and licensed moneylender in Singapore.
Undoubtedly, personal loans are the most popular and sought-after type of borrowing method, both in Singapore and globally. What makes personal loans appealing to people is the level of flexibility to choose the amount you need and spend it however way you want.
Personal loans are available to almost everyone and can cover anything, from unforeseen medical expenses and travel tickets to home renovations and plastic surgery. However, it is unusual for people to take out a personal loan with the intent to pay for their education or buy a house, for example.
You can take out a personal loan at most financial establishments like banks, credit unions, online lenders, and others. In general, the reimbursement period ranges from two to seven years, but it essentially comes down to the regulations imposed by the lenders.
When it comes to interest rates, they usually range from 3% to 36%, but again, it all depends on the lender’s conditions. People looking to apply for a personal loan can expect to withdraw anywhere from $250 to $100,000.
Besides personal loans, personal lines of credit are another favorable option for lending money. This type of lending option allows borrowers to gain unrestricted access to a certain amount when needed.
Personal lines of credit come with an upper limit that’s determined after the borrower and the lender reach an agreement. You can get a personal line of credit from traditional banks and online lenders, too.
Now, when it comes to interest rates, one should be aware that those are variable, even though there’s an APR of 10% (or more) on most personal credit lines. It’s also worth mentioning that the interest rates on personal credit lines are higher than those on personal loans.
People can still borrow money with bad credit. Granted, borrowing money with bad credit can be a bit of a challenge, but it isn’t anything that can’t be done.
Since borrowers with unfavorable credit scores are easily turned down by banks, luckily, the grass is greener for them on the other side. Online lenders and investment funds tend to lower the bar on who can get a personal loan, making money-lending an option for virtually everyone.
Need access to funds for a medical emergency or simply some extra cash to freshen up your home?
Call us today, and we’ll custom-tailor a loan for you!