There are various types of personal loan available to borrowers in Singapore and here are the following:
- Personal Instalment Loan – Providing a sum of money that is expected to repay on a monthly basis. This is vital in paying big expenses or a one-time expense.
- Personal Line of Credit – Another type of personal loan wherein lender allows borrowers to withdraw funds with a certain credit limit. Then, the interest is only charged based on the amount withdrawn. This is ideal to finance sudden expenses or emergencies.
- Balance Transfer – This type of loan allows a borrower to transfer existing loans to a new one. It’s a short-term loan with 0% interest. Most lenders offer a grace period of about 3 months to a year. This is best to use in debt consolidation such as existing credit card debts.
- Debt Consolidation – An instalment loan that offers a lump sum of cash used to pay off any type of debt. This is ideal to use if you are struggling to pay off multiple debts.