For many people in Singapore, taking loans is the best way to get back on track. During financial difficulties, borrowing money from a trusted financial institution helps save families and individuals.
For many, the best type of loan to look for is a 12-month loan lenders Singapore with reasonable interest rates so they can have enough time to pay back the loan amount they owe. In this article, learn about 12 months loans in Singapore, where to file an application, and why you should pick them over other options.
Also, learn about what to look for in choosing an excellent money lender in Singapore.
How To Qualify For 12-Month Loan Lenders Singapore?
Just like any other types of loans, the first thing you have to do to qualify is to show to the licensed moneylender that you are capable of repayment. No money lender will trust you with their money if you are unlikely to make any repayment.
One way to show your trustworthiness as a borrower is by showing a good credit rating. In order to achieve a good credit rating, you must build a good excellent portfolio by paying back any loans in time, avoid late credit card payments, and keep balances low. Learn more on how to improve bad credit rating today.
It is important that lenders see that you have a good history of paying back what you borrowed from others.
Another way to convince a money lender in Singapore that you can be trusted is to show that you are financially ready and responsible to get a loan. In your application, indicate your capacity to pay regularly. Include proof of residency, payslips, proof of assets, monthly income, and many other more.
Note that each moneylender in Singapore has its own requirements and qualifications. It is best to ask the money lending business their specific requirements before filing an application form.
Major Benefits Of Applying For 12-Month Loan
You Have Enough Time To Sort Your Finances
The biggest benefit of this type of loan is that you have ample time to pay back what you owe. You can apply for various repayment plans while you work out how to come up with enough money to give back what you owe. You have one year to sort your finances and eventually settle your debt from the loan providers.
Another benefit of having this loan is that it is often offered as a fast cash loan. This means that loan providers approve your application fast. At times of emergencies, this arrangement could help you greatly. You do not need to wait for a long time before you get your cash.
Moneylenders Approve Your Application Fast
Also, these loans have better interest rates compared to other types of credit. As a borrower, you do not have to pay back a lot of money. You do not have to think about paying exorbitant fees. The lending company truly helps you to cope with any financial difficulty you are having.
What Kind Of Loan Can I Apply for?
These are the three main types of credits you can take under this scheme. Note that each of them is specific for certain groups and needs. It is important that you know what type of money you need, so you can determine which of these you need to get.
Moreover, remember that when applying for these loans. Lending companies might have to ask you specific documents to submit depending on the type of loan you are applying for.
1. Personal Loan
Personal loan refers to the money you borrow for any personal purpose such as buying a new appliance, to afford a vacation, to consolidate debt, to pay bills, and many other more. It is called a personal because the cash you get from it is for personal use. You get to pay this type of loan for around 12 to 84 months depending on the terms and conditions indicated in your credit contract. You then get to pay this loan each month with interest.
2. Business Loan
Business loan is made to fund a business venture. The cash borrowed from this loan can be used to settle debts, buy new tools or services, or add to the capital. To take a loan like this, you must prove to the lending company that the money you are borrowing is only for entrepreneurial purposes. You should not use the money for personal purposes.
3. Foreigner Loan
In Singapore, personal credit is only for citizens and permanent residents. For foreigners living in the country, you have to apply for a different type of cash loan called a foreigner loan. Here, the approval of your loan depends on your income, salary, employment pass, permit type, and many more. Remember that in Singapore, credits, debts, and financial grants are often different for foreigners.
Difference Between Personal Loan vs Payday Loan
Personal loan is a type of unsecured credit which means that the credit company does not ask you for collateral. This arrangement is risky for moneylenders because it means that they do not have something to sequester in case you fail to pay the amount you owe them.
In order to manage the risk, the credit company would want to assess your credit rating to make sure that you have a good record of paying what you owe.
Here, you are given a year or three to pay for your credit. Also, you can use the loan amount you borrowed on anything as long as you pay the monthly repayment dues.
This type of loan is useful for those who wish to have more ease in sorting their finances. Also, it is good for individuals who have to pay emergency bills and other emergency expenses.
On the other hand, a payday loan does not require borrowers to present their rating. It has an easy application process but has a high high-interest rate. Under this type of credit, you have to pay back the money on your next payday. If you fail to do so, you will be charged with a high-interest rate and other fees.
Where Can You Get 12-Month Loans In Singapore?
The safest place to get this type of loan is from a licensed moneylender in Singapore. Make sure that you only deal with moneylenders who are included in the official Registry of the Ministry of Law.
Only moneylenders with a license are included here. Hence, you are assured that you respect your rights as a borrower. Also, you must make sure not to deal with loan sharks or unlicensed lenders to avoid harassment and intimidation from these illegal businesses.
Legal moneylenders in Singapore are popular in giving good loan packages. Since they are under the mandate of the Ministry of Law, you are assured that you will not be asked to pay unnecessary fees or to sign unfair terms.
They have provided help to thousands of clients in the past, which means that you can expect good service and a quick hassle-free application process.
Remember that not all lending companies with a license in Singapore are the same. They offer different types of service, and they specifically provide certain types of help.
You have to make sure that you find a moneylender with least fees, fastest application, and most reasonable terms. To do this, you can check out online reviews and customer feedback to know the quality of service that the company offers.
You may also want to check out 365 Credit Pte Ltd to avail a 12-month or any other type of loan. We are a legal money lender with a license to operate from the Ministry of Law.
To know more about our fees, terms and deals, you can send your queries here on our Contact us page. 365 Credit Pte Ltd. provides the best service even to those with low income or those without a good credit rate.