You are probably wondering if you should opt for a loan, particularly when you have several bills to pay without sufficient cash at hand. However, before you decide to consult a loan company and send in your application form, you need to consider your circumstances. For instance, do you have any existing assets, an active credit or debit card, and a serious need for extra cash? If so, then a personal loan is a suitable option for you.
Why Go For Personal Loan?
When you need fast cash and dislike going through the burden of applying for a traditional bank loan, then the perfect option for you is a personal loan. With this type of loan, you can get the amount you need without going through the stressful process of preparing your documents and tedious paperwork. You can even get your loaned amount within 24 hours in some cases to less than a week. By simply filling out the application form, submitting necessary requirements and waiting for the approval of your lender, you can expect to receive your cheque in a few days.
There are instances when the money is credited straight to your bank account, although this is common when you have an existing savings account with your lender. Hence, there is so much ease involved with a loan – something you cannot expect from a regular bank loan. However, you need to be aware of the benefits and limitations that come with a loan, so you can make the best decision for your concerns.
Benefits and Limitations of Personal Loan
Generally, a personal loan is great for a wide range of purposes. You can use the money for your travel or medical expences, or when you need sufficient cash for car improvements or to purchase expensive gadgets.
In addition, you will like how applying for and having your personal loan application approved can get so fast. For emergency expenses, this type of loan is indeed the most practical option you can get. What’s more, there is only a need for minimal documentation, so that also speeds up the processing time.
With a loan, there is no required collateral. Thus, there is less risk for you since being unable to repay the loan does not cause you to lose your assets. You can expect your security to be forfeited with loan, which is something you can not experience with other loan types.
On the other hand, you have to realize that personal loans come with a higher interest rate since there is no collateral involved. This means, you will have to be sure of your financial situation, since the last thing you want to happen is to default on your payments. It is also important that you understand completely the conditions set by the lender, as this can prevent you from going through even more serious financial constraints after taking out a loan.
With all these things in mind, it is worth weighing all your options before taking out a loan. Most importantly, you should check carefully the reputation of the Singapore lender you have in mind. Always conduct business with and licensed moneylenders in the country to avoid serious regrets and more problems in the long run.