is a Personal Loan
A Personal Loan is an unsecured loan given to an individual usually
by a financial institution. Individuals can use the money for any
personal use. Most Personal
Loans in Singapore require a minimum annual income of $20,000
to be eligible although there are usually preferential interest
rates for those with annual income of $30,000 and above. Personal
Loans in Singapore can have tenors ranging from 12 to 84 months
and their interest rates vary according to the financial institution.
Best Personal Loan in Singapore
When choosing a personal loan, do take note that the stated interest
per annum does not reflect any insurance, annual or processing fees.
These fees can be quite substantial and are usually paid up front
when you get the loan. As such, it is better to look for the stated
effective interest rate which takes into consideration of all the
extra fees. Generally, foreign banks in Singapore give out loans
for lower interest as compared to the local banks.
The lowest interest rate offered by banks tracked by Money Lobang
is an offer by HSBC
Personal Loan which offers an exclusive effective interest rate
of 7.00% for new customers with minimum tenor of
onr year and minimum loan of $5,000. Borrowers can also consider
a promotional offer by DBS
Personal Loan which offers an effective interest rate of 7.56%
with minimum tenor of five years and minimum loan of $30,000. It
is also worthwhile to check out other Personal
Loan Interest Rate offers to choose a loan with the most suitable
tenor and interest rate for your needs.
Personal Loan vs Credit Line vs Credit Card Debt
Personal Loans offered by banks usually offer a much lower interest
rate (usually around 12.00% per annum) with a fixed tenor for loans
as compared to Credit Line or Credit Card Debts. Debts on Credit
Cards usually incur interest of around 24% per annum while debts
on Credit Line incur
interest of around 18% per annum. There is no fixed repayment for
debts on Credit Lines and Credit Cards with the minimum repayment
on debt balance the only thing you need to take note of every month.
However, the amount could snowball if you let your debts accumulate.
The lowest Credit Line interest rate offered by banks tracked by
Money Lobang is OCBC
EasiCredit which offers an effective promotional interest rate
from 6% p.a. until 30 Jan 2020. Check out other Bank
Credit Line Rate to choose a credit line with the lowest interest
if you are interested.