Personal loans are often a good solution for urgent money needs. They are unsecured loans that allow people to borrow money for a short or medium-term period and pay it back in monthly instalments. Personal loans are offered by banks and licensed money lenders in Singapore. In order to qualify, borrowers must be above the age of 21 and must meet income requirements. Licensed money lenders also require the borrower to provide proof of income such as payslips and CPF statements.
Choosing the best personal loan singapore for your needs can be difficult, especially with so many options available. There are many factors to consider, from the maximum borrowing limit to interest rates and fees. It is a good idea to shop around and compare the different personal loan offers before making a decision. The best personal loan may be one that suits your specific circumstances, but finding it might take some time.
The Monetary Authority of Singapore (MAS) has capped the maximum amount of unsecured loans that individuals can borrow at 12 times their monthly income. This includes credit card debts and lines of credit. It is possible to borrow more than 12 times your monthly income if you have other loans that you are paying off, but it will be more difficult to qualify.
Some licensed moneylenders offer personal loans with a minimum repayment period of five years, which can be useful for those who want to save on interest costs. However, if you wish to repay your personal loan early, be aware of the potential fees involved. These may include a penalty fee of up to $150 or 3% of the outstanding loan principal.