Low-interest personal loans certainly sound appealing if you need cash urgently. Anyone who has borrowed money before understands how difficult it is to obtain a low-interest loan, particularly one with the lowest personal loan interest rate. You can, however, try to find the lowest interest rate personal loan Singapore by deciding whether to borrow from banks or regulated moneylenders in Singapore, and then following a few simple steps.
What is a low-interest loan?
A low-interest loan is usually a business or personal loan that the loan provider charges at a competitive rate of interest.
The exact rate of interest charged by a loan provider to a borrower is subjective, as it is decided by factors such as income and credit history. The better your credit history, the more likely the loan provider will offer you a lower interest rate.
Where can you get low-interest personal loans?
Another vital detail that all borrowers should understand is that there are two primary sources from which you can obtain a low-interest personal loan Singapore: banks and licensed lenders.
Banks
Personal, housing, car, and education loans are the most common types of bank loans in Singapore. Bank loan interest rates for personal loans fluctuate and change over time. As of the time of writing, annual interest rates range from 1.90% to 5.42%, depending on the borrower’s income, loan tenure, principal amount, and creditworthiness.
In case you didn’t know, banks conduct very severe credit checks on borrowers’ credit files with the Credit Bureau Singapore (CBS).
Bank loans with interest rates of around 1.90% per year may be an appealing alternative for those seeking one of the lowest personal loan interest rates, especially when combined with other bank offers and deals.
Licensed lenders
Singapore’s licensed lenders are highly controlled by the Ministry of Law’s Registry of Moneylenders. Strict limits on moneylending have produced a competitive environment that benefits borrowers. The most essential of these regulations is an interest rate cap. Currently, a registered lender can charge a maximum monthly interest rate of 4% on all sorts of personal loans.
There are no lower restrictions; however, lenders can charge rates as low as 1%, 2%, or 3% per month. This might fall much lower with special offers and discounts for repeat consumers. Some applicants may be qualified for interest-free loans from Singapore’s lowest interest rate money lenders.
Before licensed lenders can offer applicants these attractively low interest rates, they have to first check with a governing body called the Moneylenders Credit Bureau (MLCB), which stores data on borrowers’ loans and repayment history with all licensed lenders in Singapore. This is done through the Loan Information Report.
What are the requirements for a low-interest personal loan?
Banks
If you want to get a personal loan from a major bank, be aware of its eligibility guidelines. First, you must be at least 21 years old and have an annual salary of at least S$20,000. If you are a foreigner (with a Work Pass that is valid for at least 12 months), your annual income must be between S$40,000 and S$60,000.
Second, you must have a strong credit score and a track record of timely repayment. Banks are more likely to offer you their lowest personal loan interest rates if you have a reasonable income and have proven yourself to be a financially responsible borrower, as seen by your good credit score.
Licensed lenders
The requirements for obtaining a low-interest personal loan from a licensed lender are relatively straightforward. All you need is the application form (which you can fill out online), plus other supporting documents that include:
- NRIC
- Proof of income for the preceding 3 months before loan application (e.g., payslips, commission statements, bank statements)
- Income tax statements or CPF contribution statements
These supporting documents are required of foreigners:
- Original valid Work Pass
- Passport
- Proof of income for the preceding 3 months before the loan application (e.g., payslips)
- Proof of home address (e.g., rental agreement, utility bill, mobile phone bill)
Note: There is no minimum income requirement you need to meet when it comes to loans from licensed lenders.
How can you gain from taking low interest rate personal loans from legal money lenders in Singapore?
There are numerous advantages to acquiring low interest personal loans in Singapore from money lenders:
- Flexible repayment period: Before you sign the loan contract, you can negotiate a repayment period that works for you, as late payments will result in late interest and a penalty.
- Can be used for any expenses: Personal loans from money lenders can be utilized for a variety of purposes, such as funding a dream wedding or expanding your business.
- Fast approval: Licensed money lenders have a faster approval rate than banks, with most loans being authorized in under 30 minutes. This makes certified money lenders the ideal choice if you require immediate cash loans for time-sensitive situations, such as funeral expenses or medical emergencies.
- Reducing interest rates: Interest rates for loans from registered moneylenders are decreasing rather than increasing. This means that your interest rate is determined based on the outstanding balance at the end of a specified period. For example, if you borrowed $14,000 and repaid $2,000 of the principal loan amount (without interest), the interest on your next payment will be computed using the remaining $12,000. However, the lowest interest rate personal loan is not always the best option. There are other factors to consider, such as the repayment period and high late interest fees. Before agreeing to a loan contract, always read it thoroughly and ensure you understand all the terms.
- No collateral: Personal loans usually are unsecured, which means you do not need to provide any security to apply for them. Collateral is a type of guarantee provided by the borrower in the event of a loan default, such as a car or a piece of expensive jewelry. An unsecured, low-interest-rate personal loan is a popular choice for borrowers who do not have any valuable assets to use as collateral or who are concerned about the potential for their assets to be seized if they fail to make timely payments.
Conclusion
Golden Credit’s personal loans have relatively low interest rates, making them an affordable source of funds for any need. We continue to offer low-interest-rate personal loans, so you don’t drown in high-interest rates on your financial obligations. Golden Credit’s flexible terms, straightforward fees, and customer-focused service make the company the ideal choice for affordable financing.
Apply for low interest rate personal loans from a licensed moneylender in Singapore.
Golden Credit offers competitively priced, low-interest-rate personal loans with flexible repayment terms. Just so you know, we have rapid approval rates and polite, professional service.
Interested in our loan services? Simply apply for a low interest personal loan with us online today! Our loan officers will be in touch with you shortly.
