Loans in Singapore vary depending on the payment mode or period. While some loans can go on for days and weeks, most loans are payable in monthly instalments. Most monthly instalment loans in Singapore give you ample payment time and flexibility to repay your loan within the time frame as compared to other loans.
30 days is sufficient to make enough money for both you and your repayment plan. Therefore, if you have several options in mind, here are some key benefits as to why a monthly instalment loan is most suitable for you.
1. No collateral
Very few loan options offer loans without collateral in Singapore. This makes it suitable for a start-up business with nothing to show to convince other financial institutions to give them loans. All you need is your financial statement and perhaps tax statements to determine how much loan you are qualified to receive. Also, there is no need for a proper plan to help convince other financial institutions for a debt consolidation loan in Singapore.
2. Ease of payment
Apart from business enterprises, most people get their payments every month. Since you know what day of the month you will receive your salary, you must make it coincide with the payment period. In some cases, you can instruct the bank to remit the monthly instalment to the lender even without your permission. Such practice will spare you the stress of forgetting to remit your payment or channelling the money to other uses before it is too late.
3. Easy application
Consolidation loans are relatively easy to apply. As mentioned earlier, the application can be made easily by filling up the necessary loan application forms. All the requirements and qualifications are to be indicated in the application form. Once you have made an application, you will receive feedback on whether you have qualified for the loan or not.
4. Qualification for a monthly instalment loan
Whether you are a Singapore citizen, a permanent resident or a foreigner working in Singapore on an employment pass or work permit, you must meet the qualifying annual income to be eligible for a monthly instalment loan. If your income is below the prescribed minimums, it does not mean you are completely shut off from obtaining a monthly instalment loan, but further considerations may allow you to receive the loan.
Here is what you need to apply:
- Must be 21 years old and over
- Identity card
- You should know your SingPass
- A tenancy Agreement – only applicable when renting a flat
- A letter of employment accompanied by your most recent payslip
- Recent bill or letter addressed to the applicant as a proof of residence
For a foreigner
- A valid work permit for a foreigner
- A tenancy agreement
- Bank statement from an accredited bank
- A document showing proof of employment
Over time, the number of loan borrowers in Singapore has increased due to difficult economic times. The best way of minimizing interest rates is by taking a loan payable within the shortest period. A monthly instalment payment mode is the most popular loan payment method across Singapore. The chances of missed or late payments are minimized since the loan payment period coincides with your payment period. Also, due to the fact that you are making a one-time monthly payment, the interest rates will be low too.