Understanding Loans And Their Benefits
The need for money is an infinite one. Credit facilities understand this and offer loans to those in need of a financial boost for one reason or the other. There exist different types of loans and each comes with a different set of benefits. Before you go seeking out a cash loan Singapore, it is important that you know the type of loan you are applying for and the benefits that come with it. The aim of this article is, therefore, to shed some much-needed light on the different types of loans and the benefits associated with each type. Personal Loans The intended use of a personal loan can vary depending on the person seeking the loan. Such a loan can be channeled towards payment of debts, the purchase of electronics, and the payment for car loans among other needs. Personal loans, while they may be of a lower value compared to other loan types, come with a number of advantages. The first advantage is the ability to borrow a sum equivalent to the sum total of your income for four months. Secondly, you have the option of making early payments on the loans. Should you choose to spread out the payments over a couple of months, you will have the same amount to pay every month. This makes it easier to plan your payment plan. Lastly, this loan option comes with a fixed interest rate. Payday and Instant Cash Loans These loans are meant to cater to those who need a small amount. Here, you can borrow money provided that you pay it back within a thirty day period. The benefits of these loan options lie in their convenience as well as their ease of approval. With instant cash loans, you can borrow up to four times of your monthly income. The downside, however, is the fact that this loan has a higher interest rate than most. Cash advance loans also work much in the same way as instant and payday loans. Foreigner Loan As the name suggests, a foreigner loan is designed for consumption by foreigners. However, they need to either have a work permit or an employment pass to work in the country. In some instances, the borrower will require some form of collateral in order to gain access to the borrowed amount. The upside of this loan is that one can borrow money without having to undergo a grueling background check. This loan also has a low-interest rate and takes short time to process. Business Loan Business loans in Singapore can be sought after by an individual or an organization for the intended use of the funds being of a business nature. Short-term loans can be sought after to solve immediate or short-term cash-flow problems. They have a relatively fast approval rate and come with a number of repayment options. You can, therefore, tailor your repayment plan according to your needs. Education or Student Loans This category of loans is tailored for consumption by students. The sole purpose of this loan is to enable university students to pay for their tuition, upkeep and any other necessary materials during the course of their university studies. This loan attracts low-interest rates and repayment commences after graduation. Another benefit is its high rate of approval. Renovation Loan This loan is meant for the sole purpose of making improvements to one’s home. It comes with a large credit ceiling and a flexible payment option. Borrowers can decide between variable and fixed interest rates. Vacation Loan This is a cash loan Singapore that allows people to go on holidays even when they are a bit cash-strapped. Here, one can access the money immediately and this loan does not attract any hidden fees. Loan repayment, however, commences soon after your return from the holiday.