The most common type of cash loan that is widely preferred by borrowers is personal loans. The reason is simple. Personal loans can be used for multiple purposes. From renovating your home to investing in your child’s education to planning your daughter’s marriage; personal loans can come in handy for your urgent financial requirements.
If you do have a good credit score, you can approach a licensed moneylender for quick loans to help you financially. It is important to note that personal loan is classified into various types.
Based on your requirements, you can choose any of the following types of personal loans.
Car Loan
A car loan is preferred by individuals who are planning to purchase a brand-new car or a second-hand vehicle. However, Singapore car loans do not cover the full purchase price of your car. For example, if you are investing in a car that costs $20,000, then only 60 per cent of the total purchase price of the vehicle will be covered by personal loans.
If the price of the vehicle exceeds $20,000, personal loans can only cover 50% of the price. Furthermore, the payment period is up to 5 years. The borrower has to repay the loan along with interest within five years.
Home Loan
We all know that real estate investment can be the most significant and expensive investment for aspiring homeowners. Buying your dream home has now become easy with a home loan. You can borrow home loans to either construct your building or buy a pre-built apartment. Either way, a home loan is used to finance your home requirements.
The repayment terms of this loan can vary depending on the principal amount, interest, and the financial institution. Before you approach the lenders, evaluate the total amount you need to construct or buy the apartment. Only borrow the necessary amount, unless you are okay with paying a hefty interest rate.
Education Loan
Personal loans also involve educational financing options that allow users to finance their regular educational expenses, coaching fees, school or college fees, and other educational needs.
In other words, it provides a lower interest rate and presents itself as a flexible repayment option for students. Depending on your income and financial condition, you can either repay the loan and interest amount monthly or pay only interest each month. You can start to repay the loan amount once you graduate.
Renovation Loan
Another type of personal loan is a renovation loan. If you are planning to renovate your home or a particular area of your property, you can opt for a renovation loan. You can expect anywhere between $10,000 and $30,000.
The interest in renovation loans can be from 3-6 per cent, depending on the financial institution you choose. The repayment period is up to 5 years.
