An Introduction to Personal Loans in Singapore

Loan Singapore

Singapore is among the top financial centers on earth and the banks in the island country provide a wide selection of banking products, solutions and services including personal loans. These loans are intended to help the people of Singapore in meeting their financial needs. The interest rates provided could be quite attractive and the clients also enjoy flexible repayment tenures to repay the borrowed sum. It isn’t only the banks and financial institutions in Singapore offering personal loans in Singapore. In actuality, there are lots of licensed and unlicensed moneylenders that provide personal loans in the nation.

Kinds of Personal Loans

There are different types of personal Loan Singapore that are available in the ‘Lion City’ and they are as follows:

1. Term loans – these are conventional loan products offering the consumers with the money they need and require them to repay the money with the applicable interest over the duration specified in the contract they sign. They are primarily provided by the banks and conventional financial institutions in the nation.

2. Loans from Credit Card – many of the credit card issuers in Singapore provide their clients with immediate money against the available credit on their card. The loan applications are approved in no time and the money is transferred directly to the bank accounts of the applicant. Typically, the consumers can avail up to 100 percent of their available credit of the card for a loan.

3. Personal line of credit – a few of the banks operating in the nation, such as Maybank, don’t provide personal loans and rather they provide a personal line of credit that provides individuals with access to funds on a monthly basis. It’s a sort of revolving credit that needs the clients to make monthly payments for obtaining additional money.

4. Overdraft protection – OCBC Bank and other leading banks in Singapore offer overdraft protection centre with their savings accounts with the support of which they could withdraw more money than that’s available in their account. The extra money that is withdrawn is considered as a loan and the clients are expected to pay it back through equated monthly instalments (EMIs).

Banks Offering Personal Loans in Singapore

Some of the top banks that offer personal loans in Singapore are as follows:

OCBC Bank;
DBS Bank;
HSBC Singapore;
ANZ Singapore;
Citibank etc..
The Application Procedure

If you’re an adult with a steady income and a high credit rating, you can approach any of the banks in the country and apply for a personal loan. You may either stop by any of the branches or contact their customer care team. A number of them will also supply you with the option of applying for the loan online on their site.

Loan Amount

The amount offered will depend on your yearly income, credit history and general profile for a borrower. You can expect to borrow a greater amount for those who have a high yearly income together with a lucrative credit rating. Likewise, the interest rates offered to you will also be based on the factors mentioned previously and you can avail a better rate if you’re among those loyal customers of the bank i.e. if you have opted for different products supplied by the bank.