A large number of people in Singapore are now taking personal loans to finance personal purchases and meet financial shortfalls in their lives. However, there are some who have been trying to apply without success. In this post, we take a closer look at these loans to help you answer the main question, “What is the best way to apply?”
Personal Loan SG: How Does It Work?
Before we can look at the best way to apply for a personal loan in Singapore, it is crucial to understand how they work. A personal loan is a type of credit offered by a lender to a borrower in a lump sum and paid in installments. Unlike other types of loans, such as car loans or mortgage, which come attached to a specific use, there are no restrictions when it comes to personal loans.
It is also important to point out that personal loans in Singapore are unsecured. This implies that a lender will not require collateral to approve your loan. It also implies that you are not putting personal assets, be it a car or property, at risk of being sold if you default paying the loan.
NOTE: Although your assets are not at risk, which is a good thing, the risk of defaulting can be equally serious. For example, failing to repay the loan can pull down your credit score and make it difficultfor you to access credit from other lenders in Singapore.
How Do Lenders Approve or Decline Personal Loans Applications?
If you ask most people, especially those going for payday loans, one of the reasons they give is that their applications for personal loans were declined. So, here are some of the considerations that lenders factor to approve or decline a loan.
- Assessing Your Personal Repayment Ability
When a lender in Singapore approves a personal loan, the expectation is that you should be able to repay. Therefore, the lender will check your income to determine the amount that you can comfortably repay without straining. You might want to increase your income levels before making the next application.
- Assessing Your Credit Score
Because personal loans are unsecured, lenders use credit scores to assess your creditworthiness. If your credit score is poor, the loan is likely to have a high-interest rate. Therefore, you might want to improve your score to keep the loan cost as low as possible.
- Past Repayment History
The lender will also want to see how good your repayment history is to ensure only low-risk clients are loaned. So, if your credit score is tainted with cases of defaulting, the lender might decline the application.
Lendela: The Best Way to Apply for Personal Loans in Singapore
Taking a closer look at the process of loan approval by lenders, you will realize that picking the ideal one can be tough. Imagine having to make more than ten applications after comparing the terms and conditions of every lender. Now, we have some good news for you – applying for a personal loan Singapore can be as little as a couple of minutes through Lendela.
Lendela is a loan comparison site designed to help simplify the process of applying for loans. Instead of taking weeks or months trying to apply for loans, Lendela handles the bulk of the work. So, getting a loan requires only a few steps. Have a look:
- Visit Lendela website to make a short application. This should take you only a couple of minutes.
- Receive offers from different lenders.
- Select the preferred option.
- Lendela books an appointment with the lender.
- Sign the loan. You have done it, congratulations!
A personal loan SG might be all that you need to make your most important purchase, consolidate debts or pay for college education. Work with Lendela to make the process of loan application faster and enjoyable!