5 benefits of availing of a personal loan

In the 21st century, changing lifestyle requires a good amount of money. At times, one often tends to reach out for outside help for managing the funds required for buying any home appliance or for a medical emergency. At such times personal loans are useful. There are many best money lender in Singapore available that lend money at affordable interest rates.

A personal loan is money borrowed that you may use for any purpose without the need to specify the same. You borrow money from a lender or a bank then repay it at fixed terms and conditions in the form of monthly instalments at a certain interest rate. It is the most simplest loan type as you may use the fund for any personal requirement.  Here are some benefits of personal loans that you need to know about.

Unsecured loans

Personal loans are unsecured loans which means the lenders will not require any assets or a guarantee. This loan type depends largely on the credit history of the borrower. This is why a good credit score proves to be a great help to approve personal loans.

Easy application process

The process of applying for a personal loan is quite simple. It only requires documents that would show the borrower’s authentic income, age, address and identity. The lender verifies these documents and checks the eligibility and once all seems right, the loan instantly gets approved. Thus the whole process from application to documentation and then release of funds is much easier as compared other kinds of loans.

Deduct the debts easily

Another vital benefit is that personal loans help in paying off the debts such as that of secured loans or high-interest credit cards. This generally tends to be a great scheme for salaried individuals, as they get the extended time necessary to clear their dues.

Low and attractive interest rates

If you have a credit score of 750 or more, you are eligible to be charged a lower interest rate on personal loans.

Lower interest is directly helpful as you’ll have to pay a lesser amount on the principal amount.

Flexible tenure period

There is no fixed period but a flexible repayment duration to repay the loan amount that needs to be fixed during the documentation stage. The period ranges from a minimum of 12 months and a maximum of 60 months respectively. Here you have the freedom to choose a tenure as per your financial situation. A lower tenure means lower interest amount to be paid.

Conclusion

Personal loans are a great help during financial crunches. Since personal loans are instantly available and unsecured, they are quite popular. Also, the disbursement process is quick in this type enabling you easy access to money. Note that, it is important to decide the loan amount after ensuring you’ll be able to repay it.