Singapore is one of the world’s major financial centers and the island nation’s banks offer a wide range of banking products, solutions, and services, including Personal loans. These loans are designed to help Singaporeans meet their financial needs. The interest rates offered can be very attractive and customers also benefit from flexible repayment terms to repay the borrowed amount. It is not just Singapore banks and financial institutions that offer personal loans. In fact, there are many licensed and unlicensed lenders offering personal loans in the country.
Types of personal loans
There are different types of personal loan products in Singapore which are available in “ City of Lion ” and they are as follows:
- Term Loans: These are traditional loan products that give clients the money they need and also require them to return the money with the corresponding interest within the time period specified in the contract they sign. They are offered mainly by banks and traditional financial institutions in the country.
- Credit Card Loans: Many credit card issuers in Singapore offer their customers instant cash against the credit available on their card. The loan applications are approved within a short period of time and the money is transferred directly to the applicant’s bank account. In most cases, customers can borrow up to 100% of the credit available on their cards.
- A personal line of credit – Some of the popular banks operating in the country, such as Maybank, do not offer personal loans and instead offer a personal line of credit which gives people access to funds on a monthly basis. This is a type of revolving credit that requires customers to make monthly payments to access more funds.
- Overdraft Protection: OCBC Bank and the other major banks in Singapore offer an overdraft protection facility with their savings account whereby they can withdraw more money than is available in their account. The additional money withdrawn is considered a loan and customers are expected to repay it in monthly equivalent installments (EMI).
Banks offering personal loans in Singapore
Some of the major banks are follows:
The application processes
If you are an adult with a stable income and a good credit rating, you can go to one of the banks in the country and apply for a personal loan. You can visit one of their branches or contact their customer service team. Some of them will also offer you the possibility to apply for a loan online on their website.
Amount of the loan
The amount offered will depend on your annual income, your credit history, and your general profile as a borrower. You can expect to borrow a larger amount if you have a high annual income and a lucrative credit rating. Likewise, the interest rates offered to you will also depend on the factors mentioned above and you will be able to get a better rate if you are one of the loyal customers of the bank, that is if you have already opted for other products offered by the bank.
If you want to apply for personal loans in Singapore, or if you want to know the types of loans available in the country, visit Personal loans singapore.