More Singaporeans are taking up loans in the current pandemic situation to help them tide over this difficult period. It is easier to obtain loans in Singapore now as compared to 10 years ago as the money lending industry has evolved. Now, there are numerous legal 12 month loans direct lenders in Singapore, who are readily available to provide financial assistance when it comes to various types of loans.
It is important to consider the repayment plans when taking a loan from a legal money lender in Singapore. Since inflexible repayment plans tend to become a burden for borrowers, most legal money lenders will assist to revise borrowers’ repayment plans so that their financial health is back on track. This usually means selecting a 12-month repayment plan.
What is a 12-month loan?
A 12-month loan is basically a short-term unsecured loan that must be paid back within a year. It is disbursed in a small quantum with high-interest rates and the good news is that you are eligible even if you have a low credit score rating. Compared to a credit line facility, the monthly interest rates are much lower and any late payments will also not affect your credit ratings.
A personal loan is the most common type of fast cash loan that is available in the market and it can be used for almost any purpose. This includes travelling, buying a new appliance for your home or for medical use. You are able to repay back this loan within 12 months depending on the terms and conditions of your loan agreement.
Factors to consider when applying for a 12-month loan
These are the important things to look out for when shopping for suitable 12 month loans direct lenders with the lowest interest rates.
1) Decide how much you need to borrow
First of all, you need to do your own homework and compute how you need to borrow based on your needs. Make a list of your monthly income and expenditure and then assess how much you really need.
2) Interest Rates
Make sure that the interest rates are the lowest, which means based on the interest charged, you are comfortable with the monthly repayment schedule. In most cases, the interest rate will be fixed at the start of the contract.
3) Late payment penalties
Always enquire about late payment fees before signing off on any contract. In some cases, the fees can be exorbitant, which can create a financial strain on the borrower in the long term.
4) Loan Tenure
Opt for a 12-month loan instalment plan, if possible, as it will not overstretch the borrower when making monthly repayments. Most borrowers are very comfortable with a 12-month instalment plan as it provides them with more flexibility with their finances. Also, check with your lender if there is an extra fee involved in the event you decide to pay back the loan early.
The advantages of getting a 12 month loan
There are different types of loan periods that are available in the market. You should select one that suits your personal needs based on your situation and how much you need.
Most borrowers feel that a 12-month instalment plan is a good plan as it gives them ample time to sort out their finances and ensure that their loan repayment can be made timely. Before selecting a legal money lender, make sure that you discuss your options and ask as many questions as possible. Remember to check whether there are any penalties for early loan repayments.
The other benefit is that these loans can be approved within an hour of their application even if you have a low credit score. The reason being these types of loans are treated as fast cash loans which are quick and easy to apply from the comfort of your own home. The funds are disbursed once the application is approved.
Where to find 12 month loans direct lenders
It is important to look for legitimate money lenders in Singapore when shopping for 12 month loans direct lenders. Make sure that you check the money lenders registry under the Ministry of Law.
When sourcing 12 month loans direct lenders, do take note that not all lending companies are the same. Most of them offer different types of loan products and services that are pegged to various interest rates.
If you’re looking for a reputable licensed money lender, look no further as Elite Credit is here to assist you with a 12-month loan plan unlike other players in the market who only offer a 6-month repayment plan.