Pros And Cons Of Personal Loans
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The most common question is that should one apply for a personal loan or not. Well the answer completely depends on the circumstance you are in. if you have an urgent need for a personal loan, then you should apply for one.
If you don’t have enough funds with you, any assets which can be sold and money can be acquired, then in this case you should go for a personal loan. On the contrary if you possess shares, properties, etc. then the efforts should be made to generate funds from them only.
You will find many Licensed Moneylenders Singapore offering various customized personal loan offers. But you need to understand the pros and cons of applying for personal loans:
- Flexibility of use – You must be aware that personal loans are multipurpose. They can be utilized for various purposes like medical, travel, house, car, jewelry, etc. Many people take personal loans for the purpose of completing their education.
- Quickly available – Now days getting an approval for the loan is quite easy and fast. The loan approval process has been shortened to 24 hours. So if you have an emergency and looking for a help then you apply for a personal loan.
- Minimum Documentation – Gone are the days when there were plethora of documents that were required to get sanctions for personal loans. Today is era of digitalization and hence all the process is done online.
- Security – If you are applying for a non secured personal loan, then you won’t need to pledge any security against the loan amount. This is the best part because in this case you can remain tension free so as to lose you security during any default. This type of loan is best suited for people who do not have asset like house or car to pledge against the loan amount.
- High Interest Rates – As you know that these loans don’t require any asset to pledge. This makes it comes with a high interest rates. No security requirement makes it an expensive loan scheme. The high interest rates are set to mitigate the risk factor involved here.
- No Part Payments – Almost all the Credit Excel Capital Moneylender demand for lump sum payment and don’t prefer part payments. In other words you will end up repaying the complete tenure of the loan.
- Need good credit ratings – In order to be eligible to apply and get a personal loan from a reputed money lender, it is very important to have a good credit score. This score is calculated keeping in mind you income and repayment status. The eligibility norms are generally based on the credit rating only. If you fail to secure good ratings here, your application might get rejected.
You must carefully evaluate all the pros and cons of applying for a personal loan. Make sure you evaluate two to three options before applying for a loan. We hope this article must be helpful for you.