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Why Would Someone Need a Personal Loan?

A personal loan can help you with a lot of things. Even if it’s about building a new house, going on a trip or planning a wedding, this kind of loan can be the best choice. So, if you find yourself in a situation where you need a large amount of money, you have a lot of options and all you have to do is search for them.  

What Is a Moneylender?

A moneylender is usually a company that offers loans. In other words, it offers large amounts of money to people in need in exchange for a fee that the borrower will pay over time. That fee is called the interest rate. A moneylender is different from a bank because it just lends money and doesn’t offer all the other services a bank does.

It is very convenient to find a reliable moneylender and build a long-term partnership with it. It’s also very important to make sure that it is accredited and licensed. In order to be sure you are making the best choice, you can ask a friend about a reliable moneylender in Singapore or you can read some testimonials. A trustworthy moneylender offers good terms, a low interest rate, transparency and a strong privacy policy. In this field, confidentiality is very important, so you must make sure everything is perfectly done.  

What Does a Personal Loan Mean? 

A personal loan is represented by an amount of money a person borrows in order to accomplish a goal. According to the moneylenders, the most popular reasons why people are getting personal loans are renovations, weddings, trips, cars, studies, etc. The personal loan can fulfil almost any of your desires. For example, renovating a home requires a lot of time and a lot of money.  

There are a lot of people who decide to renovate their homes and they don’t have enough money to do it as fast as possible. It is not necessarily a funny thing to have your house upside down for a long period of time. If you want to do this faster, you can apply for a personal loan. By doing this, you will renovate your house within a convenient period of time and without struggling with money.  

Personal Loans in Singapore and Their Benefits 

The personal loans in Singapore have a lot of advantages. It really is a deal to contract with the company from that area because its terms are in the client’s favour. The first one and maybe the most important one, is that they have a very good interest rate. Every time you search for these kinds of services, the interest rate should be the first thing you are interested in. Why? Because the interest rate practically represents the fee you pay for your loan.  

The second reason is that the approval for personal loans is very fast. Everything happens quickly in order to save your time and start your project. A lot of other companies have a very long approval period and this can be quite annoying. When you have a goal and you count on the company from Singapore, you will see that they will do everything in order to help you achieve it as fast as possible.  

Another aspect is confidentiality and security. Both your financial data and your personal data must be secure and safe. Usually, the only person who has access to the important information is the client and the moneylender under a confidential code.  

The Diversity of Loan Types

There are a lot of loan types and they all have advantages and disadvantages. Based on what people want, they can choose from a large variety of loans with different characteristics and terms. Now, even if you choose a type of loan, a reliable moneylender must be able to listen to you, understand your desire and your financial situation and make you a personalized offer. In this way, the moneylender shows you that he understands your needs and tries to help you with your project. Here is a list of the most common loans:

• Personal loan 

• Debt consolidation loan 

• Payday loan 

• Instant loan 

• Lifestyle loan 

• Business loan  

• Study loan 

What Does the Interest Rate Mean? 

The interest rate represents the fee you have to pay for the service. It is the way the moneylender makes a profit. According to Investopedia, In a loan, the interest rate is the percentage of interest relative to the principal. It is either what lenders charge borrowers or what is earned from deposit accounts. The interest rate on a loan is typically noted on an annual basis and is expressed as an annual percentage rate (APR).So, as you can see above, there are two terms: principal and interest. Well, the principal refers only to the money you borrow, like the original amount of money. The interest represents the cost of using the principal.  

There are two main types of interest rates. The first type is the fixed one. This one is usually more wanted by the people because of its predictability. The fixed interest rate is calculated from the start and remains the same. For a lot of people, this kind of deal is safer, because they know from the start the sum they have to pay every month or every year. 

The second type is the variable rate. Well, this kind of rate can change from month to month or year to year. This is not predictable at all and it scares a lot of individuals. This is what Wikipedia says about it: A floating interest rate, also known as a variable or adjustable rate, refers to any type of debt instrument, such as a loan, bond, mortgage, or credit, that does not have a fixed rate of interest over the life of the instrument 

The interesting fact about this kind of rate is that even if it scares people, there are some situations when having to pay back a variable interest rate can cost them less than having to pay a fixed one. But even so, people choose to pay more in order to have stability and to know the amount of money they have to pay periodically. So, a personal loan, for example, can have a fixed interest rate or a variable one, based on what you want.