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Pros and Cons of Personal Loan in Singapore

Before jumping into personal loans, it is essential to know the pros and cons of it first. It can be enticing to apply for personal loans but to think about it thoroughly first will prepare for you for the responsibilities that are enclosed in personal loans. This will also prevent you from the hassle of debts. Instead of being tempted to jump in or being afraid of loans, know the pros and cons.
Let's go through the cons first:

1. Personal loans have higher interest rates. Personal loans do not have collateral that is why it is considered to have high risks according to the banks. To lessen the risk, the banks tend to charge higher interest rates.

Before applying for a personal loan in Singapore with the best rate, assure that you are fully aware of how much the interest rate is and with the terms.

2. Part payments are not allowed for personal loans. This will work out very expensive because initial payments will go towards interest payments.

3. To avail a personal loan, a good credit history is mandatory. Having poor credit record has the high possibility of rejection. Before applying for a personal loan, make sure to have the excellent credit history. This is because personal loans do not have collateral and have high risks for the bank.

Now, let's go through the pros:

1. Personal loan is unsecured. Personal loans do not require collateral for no mortgage asset is necessary. It can be a rescue in case of an emergency like sickness, travel expenses, or purchasing the latest gadgets or jewelry, even if you don't have fixed assets to apply. Personal loan is available for those who do not have assets like cars, other liabilities or do not own a house. Moreover, since it is unsecured, your assets are safe.

2. Personal loan is swift to avail. As what is mentioned above, personal loans are easy to avail because it does not require collateral or any fixed assets. It has minimal paper works and verification requirements. It is less hassle because it does not require many paper works unlike other loans so it is very helpful during emergencies.

3. Personal loan is available for any purpose. Since it does not require fixed assets, the personal loan can be used for any purpose. Unlike other loans, a personal loan can be availed regardless of the reason.

Now that you are aware of the pros and cons of personal loan, you might be having second thoughts because of the disadvantages, or might got enticed because of the advantages about it. Thus, applying for a personal loan will always depend on your hand, on your capability, on your responsibility. Personal loan is beneficial in times of need, it can be a rescue in case of emergency, but it is also important to do your research so you can get the best cash loan with the lowest interest rate for personal loan in singapore.