Understanding Different Types of Personal Loans and How They Work

Understanding Different Types of Personal Loans and How They Work

Personal loans are of four types, which people can get from any Money Lender Singapore. Lender SG is one such financial institution and people can visit the Lender SG Website to know the details of these personal loans. People take the loan to meet the expenses during the time of emergencies. Such emergencies include hospital bills, educational expenses, house renovation and many more. In this article, we will discuss these personal loans, their working, and other information.

Personal Installment Loan

A personal installment loan is provided by different banks and financial institutions. This loan is available with different names in different banks but the principle of processing the application and repayment is the same. People can borrow the required sum of money by giving processing fees only once. Some banks even do not charge this fee. The repayment of the loan is every month and the amount of repayment is fixed. The repayment time may go up to 60 months depending upon the loan that an individual has taken

How personal installment loan works?

A personal installment loan is a type of loan, which an individual can use to borrow a large sum of money. The repayment of this loan can be done in installments every month. The processing fees and interest rate is based on the total amount that the individual has taken as a loan.

Fees

The processing fees for this loan range between 0% and 3%. The interest rate depends on the financial institution from which the individual has planned to take the loan. The rate of interest varies from one bank to another and can go up to 3% and above. During the promotion period, banks may not take any processing fees but the rate of interest could be more.

Loan amount

The amount that an individual can take as a loan depends upon the credit limit that is available on his/her personal loan account. The maximum amount that the individual can withdraw can go up to four times his monthly salary. If the annual income is more than $120,000 then the loan amount can go up to ten times the salary.

Repayment

The tenure of the repayment of the loan can be between 12 months and 60 months depending on the amount withdrawn.

Usage of the loan

The loan can be used for big expenses, which can be related to a family emergency, hospital bills, educational expenses, and many more.

Line of Credit

This is a type of personal loan, which consists of an overdraft facility. The interest rate is based on the amount that the individual withdraws from the loan account.

How a line of credit works?

People can withdraw the required sum of money from the loan account after it has been approved. The amount can be withdrawn through ATM, internet banking, check, etc. The interest rate is charged only on the amount withdrawn. After the payment of the amount, no interest rate needs to be paid.

Fees

The annual fees of this loan range between $60 and $120 and the rate of interest range between 18% and 22%. If there is any promotional offer, the interest rates can be reduced.

Loan amount

People can withdraw the amount two times the amount of their monthly salary. People can draw more amounts if other credit facilities are also included.

Repayment

There is no repayment tenure for this loan. People can withdraw the money and the interest is charged based on the withdrawn amount. People can repay the amount and no interest rate will be charged.

Usage

This loan can be used to meet unexpected expenses. Emergencies can occur any time and in this case, this loan can act as a boon.

Funds Transfer

This is a loan that depends on the credit that is available on the credit card. A borrower has to pay the processing fees only once and interest can be very low or even 0% for the first 3 to 12 months. After that, if the borrower is unable to repay the amount, rate of interest is charged between 18% and 29%.

How does fund transfer work?

This loan can be taken by those people who have one or more credit cards. People can get the required cash quickly at the time of emergency. The processing fee is charged only once.

Fees

The processing fees can be in the range of 1% to 5%. Some financial institutions may not charge the fees.

Loan amount

The minimum amount that people can withdraw is $500 but it can go to several times of the monthly salary.

Wrapping Up

These are some of the personal loans that people can take from Money Lender Singapore like Lender SG Website to meet their emergency expenses. The rate of interest is low and repayment time is also flexible. Some banks may or may not charge the processing fees.

About author

You might also like

Featured

What Are The Safe And Best Ways To Increase The Level Of Testosterone

Testosterone is one of the most important male sex hormones. It regulates several different types of functions in the body. Low T levels can lead to overall hormonal imbalance and

Featured

Finding the Best Deals for Used Ford EcoSport Online

When it comes to grabbing a good deal on Ford EcoSport, your best bet would be to Search for used Ford EcoSport in Bangalore online. Among the several online portals

Featured

About  TOP-UP SIP AND HOW it HELP?

A lot of investors use a Systematic Investment Plan ( SIP) as a tool to invest in mutual funds. But, as our income grows over time, you are likely to