Before You Get a Personal Loan

 Before You Get a Personal Loan

 

It can happen to anybody, one day everything is fine and the next your car breaks down or you are faced with a major home repair. If you are like the majority of Personal Loan Singapore  people, you do not have several thousand-tucked back for these eventualities leaving you with few options. It is at this point a personal loan begins to look very enticing. However, there are a few things to consider before signing on the dotted line.

Terms

As a general rule, the terms of a personal loan from a moneylender will be similar. Nevertheless, this does not mean they are perfectly identical, so you need to do your homework. What is the length of the agreement? How soon will you be required to pay the loan back in full, and perhaps most importantly what are the interest rates? You may need money fast, but this does not mean you should not shop around.

Collateral

Are you required to put up any form of collateral for the loan? This could include a caveat to your agreement, which allows the lender to sell any real property, you own to satisfy the terms of the agreement. Do you want to risk a lien on your home or vehicle should you be unable to repay the loan or if you are late on a payment?

Borrowing Limits

What is the maximum amount you can borrow? Personal loans from a moneylender, particularly those that have no collateral, are based on your income. Some lenders will use your annual income while others prefer to look at your most recent weekly or bi-weekly pay. Depending on your income and the particular lender you choose, amounts could range from a few hundred to several thousand dollars.

Understand the Fees

What other fees is the moneylender entitled to? Once again, this will likely vary from one lender to another, but you can usually be prepared to face extra fees for late payments or any legal fees the lending company may incur trying to recover the loan in the event you default.

Final Thoughts

 

 

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