1. Understand When You Should Take A Personal Loan
According to SingSaver, personal loans should be used only for necessities. In this case, personal loans can be used in the event that your home renovation budget goes beyond budget due to unforeseen circumstances.
Instead, homeowners should first opt for a home renovation loan from their preferred banks. However, as most renovation loans have a cap of $30,000, it might not always be enough to cover the cost of a home renovation — this is where a personal loan comes in.
A personal loan can easily be used to make up for the difference to help cover the cost of your home renovation.
2. Understand That There Are Different Loan Types
Personal loans are loans that are flexible and can be used for almost any type of purpose. Here are some types of personal loans and what you need to know about them:
- Personal installment loans: These loans are the most common type of unsecured bank loans. These loans are credited to your bank account and you can use them for items you need. Each month, you are required to pay off monthly installments and the interest till the end of your loan tenor.
- Credit lines: Just like a credit card, this loan lets you access cash immediately by withdrawing from an ATM or writing a cheque from a checkbook that’s linked to your credit line account. Alternatively, you can also transfer cash to your savings account. You’ll then have to pay the borrowed money through monthly installments and interest.
- Balance transfer loans: Such loans lets you transfer the existing balance of a credit card into a different card at 0 per cent interest. You’ll then have to repay the full amount within a period of time (usually six to 12 months) or a regular interest rate of up to 26 per cent can be charged to whatever is left.
3. Always Research On And Compare Personal Loans Before Applying
Working together with the most trusted lenders in Singapore, SingSaver lets you compare loan offerings between banks like POSB, OCBC and so much more all in one place.
Besides giving you proper break downs of monthly repayments, SingSaver also shares the various features and benefits of each loan; allowing you to make an educated decision.
Additionally, the site also gives information on the lenders so potential customers know exactly who they’re working with on personal loans.
For more information about personal loans, be sure to visit SingSaver’s personal loan page.
This June, SingSaver is running a promotion for personal loan applicants. Simply apply for a personal loan through the site and get the first three month’s interest rate for free (amount is capped at $250).