The Different Types of Loans Offered by Licensed Moneylenders in Singapore
Introduction
A loan is a sum of money you borrow from a lender, with the promise to pay it back over time.
Moneylenders in Singapore offer loans in various forms, including personal, business, and foreign loans.
Loans are an important part of life for many Singaporeans. However, there are many types of loans available today that you should be aware of before applying for one to choose the one most suited to your needs and preferences.
Personal Loans
Personal loans are short-term loans that are used for personal expenses. Personal loans are available in amounts ranging from S$2,000 to S$30,000.
You can use personal loans to pay for your wedding expenses or renovate your house.
This may also cover the cost of medical treatment where you have no insurance coverage or if you need to pay off an unexpected bill such as replacing broken glass on your car windows.
Personal loans should not be used to pay off bills such as credit card debts, utility bills, and other outstanding loan payments.
Business Loans
Business loans are used to finance your business. They are unsecured and can be short-term or long-term loans.
Business owners usually take out a business loan to pay for capital expenditure (CAPEX).
CAPEX refers to expenses that are incurred when you start running your business. For example, if you want to set up an office space, furniture and equipment have to be purchased before the office can be opened. These items will have been considered as part of the cost of setting up a company, but they do not contribute any income until after they have been purchased and put into use.
Foreigner Loans
Foreigner loans are typically for foreign workers looking to cover expenses while they are in Singapore. These loans offer a longer repayment period, usually between three and six months.
They are also provided at a higher interest rate than other moneylending services because they have a high risk of default.
This type of loan would be used by foreign workers who have just arrived in Singapore and need cash until their first paycheck arrives or if they need extra money for school or healthcare costs.
Licensed Moneylenders such as [Loan Link] provide foreign loans with competitive rates, flexible terms, and quick processing times so that you can get the cash you need when you need it most!
Emergency Loans
Emergency loans are short-term, unsecured loans that can be used to cover unexpected expenses. These unsecured personal loans are usually repaid within a few months.
An emergency loan is typically available for up to one month at a time, with the repayment period anywhere from six months to five years.
The loan amount you can borrow will depend on your credit score and income level; it will also be affected by whether or not you have other outstanding debts with us or another financial institution.
Payday Loans
Payday loans are short-term loans repaid when you receive your next paycheck. Because the loan must be repaid within a few weeks, payday loans can have very high-interest rates and fees.
However, they can be useful in emergencies or when other sources of credit are unavailable.
Payday lenders offer a variety of payment plans to borrowers based on their income and ability to repay their debt. If you choose to use this type of loan, make sure that you understand all terms before signing any agreements so that there is no confusion later on while paying back the borrowed amount quickly after getting paid.
Renovation Loans
Renovation loans are the perfect solution for property renovations or refurbishment. The flexible repayment terms of this type of loan make it ideal for almost any renovation, whether you’re building a new house or renovating an existing one.
Renovation loans can be used to pay for repairs, renovations and refurbishment. They have lower interest rates than traditional home loans and flexible repayment terms that allow you to pay back your loan in installments over time instead of one lump sum at the end of the term.
Conclusion
You can now see that many types of loans are available in Singapore. Each type offers unique features and benefits, from personal loans to foreign loans. All you have to do is find out which one fits your needs best.
We hope this article has given you some insight into how loan repayment works and how much moneylenders charge for their services.