Monthly Installment Loans: Are You Choosing the Right One?

Posted by Alyana Azizah on May 12th, 2021

When it comes to licensed money lender debt consolidation, you will have to keep a few things in mind while choosing a loan. Below are four things that will help you choose monthly installment loans Singapore. 

1. Compare the rates

Usually, personal loans that are consumer-friendly come with yearly percentage rates between 6% to 36%. For every unsecured personal loan, you must compare the rates at several lenders so that you can select the one that is offering the lowest rate. Many lenders online permit you to check that. It won't even affect your credit score.

2. Understand the fees

Some of the money lenders ask for origination fees. That is generally 1-6 percent of the loan amount. Other lenders charge a prepayment fee for repaying the loan early. You should avoid agreeing to borrow money until the lender discloses all fee charges.

3. Choose a term that's manageable

A repayment term that ensures your monthly payments are manageable is the perfect one. If your loan term is longer, you'll have to pay more interest. Calculate the monthly payments based on your chosen term length and then decide what's manageable for you.

4. Explore some lender perks

A few of the lenders provide features based on the reason you are borrowing money. If you are consolidating debt on your behalf, some of the lenders send the money to creditors. Others might allow you to shift your due date, or you may provide a hardship plan in case your financial situation changes.

Meta: To choose monthly installment loans Singapore, you need to compare the rates, understand the fees, choose a manageable term and explore some lender perks