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The Advantages of Getting Low-Interest Rates on Personal Loan

In this article, we’ll be discussing the best long term personal loans and personal loan money lender Singapore. But before digging right into the topic let’s see how actually interest rates matter in personal loans.

  1. AIR: AIR stands for Advertised Interest Rate which is the annually calculated. It does not give detailed information as to where and how your money is going and also fails to provide admin and processing fees.
  1. 0% interest personal loans: Some personal loan money lender Singapore offer this facility on short term loans. But they do have other policies to compensate and create balance like they charge higher processing fees. Such policies are made for attracting more public. They don’t take payment later as interest but they do charge them hidden in an upfront manner.
  1. EIR: EIR stands for the effective interest rate. It is an umbrella term for all the fees that are involved in getting a personal loan. It also showcases your repayment information.  

The advantage of getting a low-interest rate on personal loan:

  1. Low-interest rates mean low borrowing costs. This is the right time to consider major finances and purchases while you can afford to repay them.
  2. Low-interest rates also open doors for refinancing existing debt. You can refinance any of your previous loans in order to pay comparatively low then you will eventually pay for a lifetime. It is a good and beneficial way if you use it wisely.

As a coin has two sides so is the low-interest rate situation. It may help you in refinancing but it will hurt your yearly yields, cash management and savings. This tends to increase risks but you can play it cool too.

A personal loan is one way which connects our needs and wants. It is definitely not necessary that the amount of money you earn every month is sufficient to fulfil your or your close one’s demands. This is where personal loans come in handy and get the lowest interest rate personal loan in Singapore is more than easy, affordable and flexible now.

Banks along with licensed moneylenders have also started to inculcate personal loan money lender Singapore that offer loans for business, housing, education, car, etc. The packages are comparatively good and beneficial too.

After talking about the importance of personal loan and various sources you can purchase one from, let’s see how you can get the best long-term personal loans:

  1. What do you need?

You know the reason why you want a loan, stick to it and be sure about it, check all the pros and cons and then apply for a loan.

  1. Types of loan available:

Now you’ve decided what you want the loan for, now go and research, see the options available and choose the one that fits your needs the best. Remember no loan will be accurate for you. You have to choose the fittest option available.

How to get a personal loan at a lower interest rate?

  • When you apply for a loan, be it in a bank or to a licensed moneylender, he or she peeks into your income and expenditure history. Moreover, he or she looks at how punctual you have been with repaying the debt of your previous loans. This analysis that they perform helps them in knowing whether you will be able to repay the loan amount in later stages or not. Questions like do you generate enough income to withstand the crisis, provide x amount of loan to you, be safe for them, how stable your primary income is, etc. gets answered by observing your money relations. Hence, it is very important for you to maintain a clean and crisp profile with respect to money relations. If not done so, there might be a risk associated with lending any sort of loan to you. Fast and low-interest rate loans might seem out of your league.
  • Just like online shopping portals have a sale or seasonal discounts running on to increase their sales, banks and licensed money lenders also provide seasonal offers. These can be available to you in the holiday season or summer or any festive season. You can smartly take advantage of such seasonal schemes and get your hands on a personal loan at much cheaper interest rates. Make sure to research enough and then apply to a particular bank or licensed moneylenders as the interest rates might vary from one to another.
  • Similar to the first point, you should maintain a good CIBIL score. A CIBIL score of 750 or above implies that you have a healthy relationship with money, a responsible borrower, you have a good repayment track and hence lending you money is not risky at all. This will help you with getting personal loans at interest rates lower than the standard ones and open the doors for negotiation which in turn is helpful for you. Another tip over this is to choose a lender Don’t go where the herd of sheep are. Take the path that seems right and advantageous in long term. Don’t think of a short tenure but a long one always. This can help you with the flexibility of repaying your finances.
  • Preferring your old money lender is always a good idea as he or she knows you having your money habits and will suggest what suits you the best. Of course, you will have the right over him to select what seems appealing, adaptable and sustainable to you. But your good old friend (money lender) will make you look at those smaller details which you can miss out and can cause either benefit or trouble in later stages.

Now that you know all about what is a personal loan, its advantages, how you can get your hands on it at a much cheaper interest rate, then stop waiting and go ahead with finding a personal loan that fulfils all your needs and doesn’t pressurise you while repaying pending payments.

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