A Beginner’s Guide to Comparing the Personal Loans Available in Singapore

So you’re in need of a personal loan and don’t know where to start – don’t worry, we got you! You might have heard people talking about these loans here and there but you’re not sure what they are, when to use them and how to use them. If that’s you, then this article is for you. We’re going to start comparing the personal loans available so that you can make an informed decision, one that best suits your interests, are you ready? Let’s get started!

First and Foremost - What is a Personal Loan?

Forget what the others have told you. They most likely over-complicated things. You can get this credit line without the need to provide collateral (aka your home or car as a “guarantee”). This is often referred to as an “unsecured” loan – it doesn’t mean it is not secure for you to get one, it means that you don’t have to put down collateral to get it.

These kinds of loans, as you can probably guess by their unsecured characteristics, are very appealing. People of all ages get them for all kinds of purposes, purposes which we are going to discuss now. From happy to not-so-happy occasions, these loans can help you in many scenarios.

Comparing the Personal Loans Available in Singapore

You might have heard your parent getting this loan to pay off other more complicated debts, you might have heard your friend’s family get one for life celebrations such as weddings or anniversaries. Both of these reasons are valid. In fact, there are (typically) four main reasons one may decide to get a personal loan in Singapore. It is important you know all four of them so you can start comparing the personal loans available in Singapore and make an informed decision.

The four main categories are:

• Health emergencies
• Life celebrations
• Educational needs
• Credit card debt

We are going to take each one by one and discuss more about the ways in which a loan can help you manage these situations.

1. Health Emergencies

No one ever wants to talk or even think about a situation in which you find yourself in need of large amounts of money while you or someone loved is in the hospital. The circumstances of this scenario are often tragic or traumatic and people often become more desperate when they realize they do not have the money to cover the medical bills or medical procedures. No one should have to go through that but, as we know very well, these kinds of situations come unannounced, often overnight.

This is why the use of such a loan for medical expenses is so popular. Because you do not need collateral, you can get the money that you need fast, without additional worries. Nothing should have to depend on money, especially you or your family’s health. These loans can help you rest assured you did all there could possibly be done for the well-being of you and your loved ones.

2. Life Celebrations

To lighten up the mood a bit let’s continue to a happy scenario in which people go for this type of loans, life celebrations. Oh, the joy of finally marrying off your son! How joyous it is to get to celebrate with your extended family an anniversary! These are the beautiful moments in life and they deserve to be celebrated properly.

We all love celebrations, but it would be a lie to say they don’t cost a ton of money. This often deters people from celebrating life milestones and, before you know it, life goes by. It would be a shame not to live life’s beautiful moments to the maximum because of monetary constraints.

This is where these loans come in handy. Life goes by too fast, celebrate the moments that deserve celebrations. Go to that cousin’s wedding. Take your parents on a vacation on their 30 years anniversary. Go and spend your daughter’s 8^th birthday at Disneyland or at Universal Studios here in Singapore. Money comes and goes but you never know when you’ll next get to spend these moments. Nothing is granted in this life, enjoy the beautiful moments. Do not let money get in the way of living and enjoying life.

3. Educational Needs

Education is, obviously, a matter that should not be postponed – not because of money, at least. You won’t be young forever and a time will come when you won’t have the time (or capacity, to be honest) to get back to your studies no matter how hard you try.

Invest in your education. It is one of the best investments you can make in this life. Go get that degree. Go study nursing if that’s your dream. Go study business management and open that coffee shop here in Singapore. Make your dreams a reality. All you need is a loan and a big dose of determination and, luckily for you, one of these is very easy to get (and that’s the loan if it wasn’t clear enough)

4. Debt consolidation

The last usage is the most technical one. This one doesn’t give you an education, it doesn’t pay your medical bill nor does it take you on a vacation, but it gives you something else that is very valuable; it gives you peace of mind.

Debt consolidation is used when you take out a loan with low interest rates (such as a personal loan in Singapore) and you it to pay your other scary rates (like mortgages and car rates). This simplifies your payment plan and makes it easier for you to keep track of your loan expenses.

Comparing the personal loans available here doesn’t have to be difficult and we hope we’ve made it easier for you to understand them. They all address different needs, but they are varied enough so that whatever it is that you might need quick money for, you can get it.