Many loan products exist in Singapore today. With so many choices, it may be hard to pick the best one, especially if you have a pressing financial need. But knowing the right loan product is a crucial part of your decision making.
Here are four advantages of knowing the right loan products to take out from a licensed money lender Singapore.
You will more likely get approved
If you know the right loan to take out for the purpose you need, your application will have a higher chance of being approved. Deciding on a loan is not just about having enough money to repay it; it’s also about knowing what you will use the loan for.
There are business loans if you need capital for your business, education loans if you need extra funds to study, emergency loans for sudden hospitalizations, and many others. Knowing which type of loan to take out depending on your purposes is an essential first step.
You will get favourable terms
If you choose a loan product that matches your purpose, you can also benefit from good terms, tenure, and interest rates. For example, if you take out an emergency loan for a sudden hospitalization, the lender may give you more time to repay the loan, as well as a lower interest rate. With that, you will have more time to secure cash to pay off your loan. At the same time, the loan will not cost you too much because of the lower interest rate.
In some cases, and if your lender allows it, you may be able to negotiate the terms of the loan. You can request a longer repayment period, smaller monthly repayments, or even a much lower interest rate. You could even ask for flexible repayment schedules.
You will most likely repay them on time
Choosing the right loan is also good news for repayment. Having a loan with good terms means you will most likely be able to make all your monthly repayments on time. This is important, as any delayed or incomplete repayments may bring down your credit score.
But if all your monthly repayments are made on time and in full, your credit score remains healthy. It may even go up if you are consistent in your repayments until the loan is fully paid back.
You can avoid ‘hidden’ charges
Most of the time, ‘hidden’ charges are only hidden because borrowers don’t know what they’re getting into. But if you know the type of loan you’re about to take out, as well as the terms laid out in the contract, you would not be surprised by these ‘hidden’ fees.
More often than not, you will find all associated fees stated somewhere in the loan contract. If you disagree, talk to your lender and see if you can negotiate those terms. If the lender won’t allow it, you have the right to refuse and find an alternative.
Conclusion
You need to know the right loan product for your needs to make the best decision. Know your purpose for taking out a loan, then find the appropriate loan product. This way, you can get more favourable terms, and you can make sure that you can repay the loan on time.
Remember that you can shop around for the best lender and loan product for your purposes. You are under no obligation to sign the first loan contract that you read. Any time you find terms that you don’t like, you can refuse to sign the contract and find another loan.