There are many credit loans in Singapore, but the key credit loan in Singapore are mainly unsecured loan, payday loan and personal loans. Today, the financial industry is rapidly advancing plus the cost of living is rising and that is affecting quite a number of Singaporeans. And a combination of social needs and living standards have made several turn to getting loans to maintain their social lifestyle.
One of the most common loan types is unsecured loans. This loan model allows borrowers to avoid pledging any form of collateral of the lending company. So there won’t be any risks to your home property should you default. One does not have to worry about the other assets that they own.
The application process is simple and it is commonly done through online quotations and with lenders responding with a quotation or reasons if you are rejected. The borrowing limit limit applies only to interest bearing balances incurred on unsecured credit facilities such as credit cards and unsecured personal loans.
This is a scheme which allows borrowers to take up short term loans based on their income. Similar to unsecured loans, no collaterals are needed and loan repayments are tailored based on your income ability. Payday Loans is highly flexible and tends to be fast in getting loan approval.
Disadvantages of Credit Loan in Singapore
Unsecured Loans & Payday Credit Loan
One of the main issue about unsecured loans is that the loan amount tend to be smaller. This is due to the large amount of risk that the lender has to uptake should you default on your loan repayment.
This in turn leads to higher interest rates imposed hence borrowers might look at other loan options or just stick to what the lending company offers.
Final Word on Credit Loan in Singapore
Each credit loan type has their own advantages and disadvantages, the main point is that one has to be aware of their financial situation and be smart about repaying off any form of loans. Some money management has to be learnt, and one has to be prudent about saving money.
At the same time, one has to be aware of their credit rating. Bad credit ratings usually lead to loans being unapproved and some will eventually turn to unlicensed moneylenders which can cause a wreck on one’s life.
The is help available for those having issues with repayments. The Repayment Assistance Scheme (RAS), a centralised debt repayment solution by Credit Counselling Singapore in partnership with the banking industry.
It’s a scheme which allows highly indebted borrowers to have a assistance scheme. Borrowers who are eligible for the scheme will get letters from their financial institutions with information on their outstanding credit debt. Learn more about RAS and how it works