Why Installment Loans Can Help Manage Your Finances Better

Consolidation Loans Singapore, Debt Consolidation Loan Singapore

Licensed moneylenders in Singapore have numerous loan options for interested borrowers. Whether you’re trying to secure a Singapore consolidation loan or a personal loan, let your concerns of paying off the loan be heard by your potential moneylender. This way, they can help draw up a plan for you to successfully pay it off – an essential step before you proceed with the loan.

Consider: monthly instalment loans

Many borrowers have found monthly instalment loans helpful in paying off their loan. And what exactly is a monthly instalment loan in Singapore? The concept of this loan is quite simple: for the amount of money you borrow, you pay it back on a monthly basis, with interest included.

Often, when taking out a monthly instalment loan, you don’t need a guarantor to apply for the loan. Instead, submit the necessary documents such as your work permit and salary over the last three months. The licensed moneylender would probably grant the loan so long as you prove capable of paying back the loan.  

The benefits to reap with a monthly instalment loan

One of the key benefits of having a monthly instalment loan is that you can gauge how long you’ll need to pay off the loan completely. There are also other benefits to getting monthly instalment loans, such as the following.

·       Fast application process

The process of applying and getting your monthly instalment loan approved can sometimes be quicker than a regular payday loan – as fast as one hour! This is especially true if you are holding a good credit score.

·       Higher borrowing limits

A typical payday loan grants you to borrow up to one month of your salary. On the other hand, monthly instalment loans allow you to borrow up to six times your salary, if not more.

·       Credit score is not the only factor

Fret not, most licensed moneylenders do not consider your credit score alone when you’re applying for a monthly instalment loan. Especially when paying off your loans by instalment, moneylenders might switch their attention to your current financial standing instead. Their main concern is whether you can pay it off, perhaps emphasising the need to produce proof of income.

This aspect comes with another benefit too. If you’ve been looking into building your credit score back again, successfully paying off your monthly instalment loan might help to boost it.

·       Flexible repayment plans

Even with the need to submit monthly payments, there is some flexibility to the monthly instalment loans. For instance, you might find it more beneficial to pay off a smaller amount every month. Although it might take a longer time to pay back your loan, you might find paying it off this way is more comfortable.

Conclusion

Some have found monthly instalment loans particularly useful to start a business, secure a new home, and even in the time of medical emergencies. But whether it’s a monthly instalment loan or a payday loan, it’s best to check if you’re able to pay off the loan and interests on time, before you proceed with the application.

 

 

 

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