An Introduction to Personal Loans in Singapore

Singapore is one of the top financial centers in the world and the banks in the island nation offer a wide range of banking products, solutions, and services including Personal Loan Singapore. These loans are designed to help the people of Singapore in meeting their financial needs. The interest rates offered can be quite attractive and the customers also enjoy flexible repayment tenures to pay off the borrowed amount. It is not just the banks and financial institutions in Singapore that offer personal loans in Singapore. In fact, there are many licensed and unlicensed moneylenders that offer personal loans in the country.

Types of Personal Loans

There are different types of personal loan products that are available in theLion City’ and they are as follows:

  1. Term loans – these are traditional loan products that offer the customers the money they need and also require them to pay back the money with the applicable interest within the term specified in the contract they sign. They are mainly offered by the banks and traditional financial institutions in the country.
  2. Loans against Credit Card – many of the credit card issuers in Singapore offer their customers instant cash against the available credit on their card. The loan applications are approved within no time and the money is transferred directly to the bank account of the applicant. In most cases, the customers can avail up to 100 percent of the available credit of their card as a loan.
  3. A personal line of credit – some of the popular banks operating in the country, such as Maybank, do not offer personal loans, and instead, they offer a personal line of credit that provides people with access to funds on a monthly basis. It is a type of revolving credit that requires the customers to make monthly payments for accessing more funds.
  4. Overdraft protection – OCBC Bank and other top banks in Singapore offer an overdraft protection facility with their savings account with the help of which they can withdraw more money than that is available in their account. The additional money that is withdrawn is regarded as a loan and the customers are expected to pay it back through equated monthly installments (EMIs).