Personal loan is a loan for which one applies for on an emergency purpose. They are the means by which a person fulfills his or her personal emergency economic needs. When this loan is unguaranteed or not secured, it can be used for various reasons like marriages, medical bills, modernizing the homes and paying for the dream vacationing spot.
Despite of any purpose there are many banks offering personal loans. It’s a pliable amount of cash lent by the banks in the time of the person’s need despite of their goals to use the loan. These personal loans are charged with some interest rates. Interest rate is the certain amount percentage added by the bank on the benefit provided to the borrower. As these loans are unsecured the interest rates on the personal loans are considerably high.
Benefits of the Personal Loan
There are some points representing the benefits to get a personal loan. They are:
- After the approval of the application, money gets transferred to the account of the borrower within no time.
- Flexible holding time is provided by the bank to the borrower like 12 or 60 months
- Online services are provided by the bank to the borrower to keep in track with the application status and regarding any assistance all the time
- Official paper work is less needed
- Whatever is the interest rate is, remains fixed throughout the proprietorship.
- This loan is unsecured.
- Only the customers who have completed their online confirmation and accepted the final offer, can avail the benefits of the personal loan.
Circumstances under which personal loans have proved to be a good idea
There are five circumstances under which personal loans have proved to be a good idea. They are:
Merging Credit cards
One of the good ideas of getting a personal loan is when a person’s one or more credit cards have maxed out, and can opt for a personal loan and merge all his charges into one monthly amount. Now there are reasons why this option attracts people like the interest rates are much lower are the person is relaxed on the increment of the credit limits.
Recapitalisation of the student loans
Recapitalisation of the student loan, relieves the financial stress on a person, a great idea to apply for personal loans. The interest rates are medium to higher on the student loan. To get rid of the loan faster, customer can choose a loan on which interest rates are cheaper.
An allied student loan comes with reimbursement, adjournment and endurance. Recapitalization of the student will not be accepted, if the councilperson offers forgiveness on the loan hereafter.
Funding the purchase
If taking a personal loan and paying to the vendor in cash is a better option. The funding depends on the want and need of the customer. Although making a quick decision on funding is not a good idea. Asking the seller his offers and match with what benefits a personal loan can apply. Then the person should make the decision.
Marriages are big events for which people can apply personal loans. The expenses of these events cannot be paid by the credit cards. Since the interest limit on the cards are more than the personal loans. Huge amount of interest on the credit cards is impossible to pay in one month duration. So people prefer personal loan, as their tenure is more than that of the credit cards.
Improving the credit score
Improvement of the credit score can be done when the reports shows the credit card dues, mixing of the account is the better option. The loan should be paid back in the time limit, which is also good for the credit score.
Eligibility for applying for personal loans
- Person should be employed.
- Amount of income of the person
- More than 18 years of age
- Occupation of the person
- Maximum loan duration can 1 to 4 years and 12 to 60 years.
Documents required for the loan
- Pay slip of the employee/ Income tax return slip for the self employed
- Valid pass of working in Singapore
- Bank statement for at least 6 months
- Degrees of the education / license for self employed
As far as now it is understood about the personal loan and how it helps an individual to get immediate cash in the time of emergency. The circumstances like marriages, to pay credit card debts are suitable for the personal loan application. A person should meet the above-mentioned following eligibility criteria and the required documents to apply to get a personal loan. The individual should be aware the amount he has to pay should be covered with the amount of the loan and about the tenure of the loan. The loan should pay back in the time provided as it is an unsecured personal loan. Find more about the advantage at EasyFind – fast personal loans.