Menu Close

Low interest loan

Getting Loans with Low Interests – The Deciding Factor of Loan Purchase

low interest loan

In the present day, numerous lenders offer loans with low interests in order to make them more affordable and attractive for borrowers. As a result, it has become more difficult for borrowers to decide which loan to purchase. This is where the importance of comparing different loans comes in. By comparing loans, borrowers can not only find the loan with the lowest interest rate, but also get an idea of the different terms and conditions offered by different lenders.

Most Singapore personal loans enable customers to borrow a specific amount for a set period, generally at a fixed interest rate. Repayment terms are then spaced out over time based on the terms and circumstances of the loan contract, interest rate, monthly wage, processing costs, and repayment capacities. In a nutshell, these are financial loans that one can use any way they see appropriate. Still, getting a personal loan rather than a moneylender is often a considerably cheaper and safer option under the category of low interest financing definition.

Business Finance

The MAS SGD Facility lends Singapore Dollars at an interest rate of 0.1% per annum to eligible financial institutions. These financial institutions then use these funds to support their lending to SMEs under the Enterprise Singapore Loan Schemes. The schemes comprise the Enhanced Enterprise Financing Scheme – SME Working Capital Loan (EFS-WCL) and the Temporary Bridging Loan Programme (TBLP).

The government intends to share 90% of the risk on such loans and MAS is providing funding at almost zero cost under the Facility. This means that banks and finance companies will be able to make more loans to SMEs at lower cost. MAS believes that this will help Singaporean banks originate loans to small-to-medium enterprise borrowers more affordably.

Under the Temporary Bridging Loan Programme, SMEs that need working capital beyond the bridge loan program can apply for the SME Working Capital Loan program.

Low-Interest Financing

Low-interest loans are loans that meet or surpass the interest rate necessary to cover the authority’s expenses of issuing and servicing such loans but do not exceed the rate of interest indicated in the sub. To get the best interest rates for a loan, there are a few things that need to be considered.

Down Payment: A more significant down payment allows for lower interest rates since the lender assumes less risk.

Early fixing the rate: If one locks in their mortgage early, the lender will be unable to raise the interest rate between the time they apply for a loan and the time they are accepted.

Request a loan with a shorter repayment period: Shorter loan durations, such as 15-year loans, might offer lower interest rates than 30-year loans.

Higher Credit Scores: The higher the credit score, the lower the interest rate.

Organize finances: A lender will want to properly examine how probable it is that one would repay the loan, and to do so, they will go beyond people’s credit scores and into the finances. This implies one should pay off large debts and obtain a thorough knowledge of the whole financial picture based on their income.

Wedding Loans

Few life occasions necessitate such a significant monetary expenditure all at once as a wedding. From the dinner to the honeymoon, many couples are willing to splurge to have the wedding of their dreams. The fact is that this might strain their finances at a time when other large expenses, like as down payments and renovations, may arise. This is where a low interest wedding loan might come in handy. These, often known as personal loans, might help you get by when you need to make a major purchase. What distinguishes wedding loans is that they provide a quick line of credit without the necessity for collateral.

Banks and financial organizations need candidates to be employed, of a specific age, and earn a certain income in order to qualify for such a loan. A copy of your NRIC, your IRAS Notice of Assessment, your CPF statement, your last few months’ pay stubs, and documentation confirming your billing address are often required for application. The loan might thus assist in covering a sum ranging from $10,000 to S$70,000, depending on what one wishes to include in their wedding. The red packets they’ll receive during their wedding may mitigate some of these costs. However, because this amount is not guaranteed, they should ensure that they have the adequate cash flow to meet all of their bills.

Short-term Loan options in Singapore

Licensed Money Lenders: The first option for a short-term loan in Singapore are the licensed money lenders. The process is simple and straightforward, and you can get your hands on the money you need within a day or two. The downside is that the interest rates are quite high, and you will need to have a good credit score to qualify.

Banks: If you have a good credit relationship with your bank, you may be able to take out a short-term loan from them. The interest rates are usually lower than those of licensed money lenders, but the approval process can be more complicated and time-consuming.

Credit Cards: Another option for a short-term loan is to use your credit card. This can be a quick and easy way to get the money you need, but the interest rates can be high.

Personal Loans: You may also be able to take out a personal loan from a friend or family member. This can be a good option if you have good credit and can get a lower interest rate.

Final Words

Apart from the banks, some may prefer to go to licensed moneylenders if they do not match the banks’ standards. While this may be a realistic alternative, proceed with care. Check the list of licensed moneylenders maintained by the Ministry of Law to ensure that the lender is legitimate. They are also more likely to give smaller loans at higher interest rates than banks, so one has to be sure that one can afford the repayments before deciding to take out a loan.

Licensed Moneylender in Bugis– Singa Credit Pte Ltd

Established in 1992 and previously known as Yong Seng Credit,
Singa Credit Pte Ltd is Licensed Moneylender in Bugis regularly updated with the latest regulations to be in line with the requirements set out by Registry of Moneylenders.

Please feel free to call 66946166 for more info on our lowest interest rate in Singapore or walk in our office 470 North Bridge Road #02-01 Bugis Cube Singapore 188735.