Loan and different types of Loan in Singapore
Money is an important thing at every stage of one’s lives. Sometimes people unable to fulfill his/her dream due to lack of money. A loan can be one of the best options to fill-up the dream. Besides if a person wants to form a new business one of the main source of the capital can be a loan from money lenders.
A loan is a sum of money borrowed from an entity (organization or individual) to another entity. The borrower is required to pay back the loan, including the interest charged over a specified period.
Different Types of Loan in Singapore
There are various types of loans is popular in Singapore to ensure and meet all your needs.
A personal loan is one of the most popular loans in Singapore. In general personal loan has a lower value compared to other loan and people usually take this loanto mitigate the livelihood needed like to buy a car, electronics appliances, and so forth. Normally the personal loan bear fixed interest rates and Repayments against the loan are the same each period.
Payday loan is another type of loan which is popular in Singapore allows someone to borrow a small amount of money at comparably high-interest rate which needs to be paid back in as little as 30 days or at your next paycheck. Also, this type of loan is easy to qualify and approve rapidly by money lenders.
If a foreigner has valid work permit in Singapore, he/she is able to take foreigner loan. In some cases, the borrower needs to put some collateral against the loan amount as a security. For this type of loan interest rate is lower and a minimum number of documents is required for approval the loan.
A business loan provides an entity (persons/ business firm) in the form of capital to start a business venture. The money lenders provide the borrower with the money and the borrower is required to make the repayments after an agreed period of time. The short term business loan may resolve cash inflow of a business. The qualification of the borrower, the interest rate, repayment date, and the loan amount are all variable in case of a business loan in Singapore.
Cash Advance Loan
Cash advance loan is extremely the same as payday loan within the sense that somebody is able to borrow an exact quantity of cash from a money investor before your payday. While most individuals qualify for these types of loans, they do carry a high rate of interest. For this type of loan, no collateral is needed. How much cash are often borrows by recipient depends on his/her financial gain.
Education or student loans are specifically design for aiding students to pay for university tuition fees, living expenses and books and they’re usually offered by money lender. And a low-interest rate is offered by moneylenders and in that case, the approval rate is very high in Singapore. Since collateral is not required for education loan so any students who apply for education loan can easily qualify.
Short Term Loan
Short-term loans are also know as caveat loans in Singapore. So these types of loans are design to help businesses which firms are facing a problem with their cash flow. This loan helps to fix cash flows issues and improve the business strength. Approval for the loan is very easy, flexible and the approval period is very short.
And based on security or collateral there are two types of loan which are secure loan and unsecure loan.
When the loan is under protection by any collateral or security then it is know as secure loan. A mortgage loan is one of the common secure loans in Singapore.
The loan for which there is no collateral is require is call the unsecure loan. In Singapore, Education loan, Credit card loan, Personal loan are the types of unsecure loan which is very popular in Singapore.
Other loan schemes:
Some other types of loans are also popular in Singapore like Instant Cash Loan, Renovation Loan, vacation loan etc.