Hi. How can we help?

Here is an example of the cost of a loan including processing fees and annual fees. Suppose you take up the following loan:
Loan amount: $10,000 
Tenure: 3 years
Interest rate: 3.88% p.a.
Processing fee: 1% of loan amount
Annual fee: $100, waived for the first year

Calculation:

Total payment = [(10,000*3.88%*3) + 10,000 + (1%*10,000) + 100*2
= $11,464

Total monthly payment (excluding fees) = [(10,000*3.88%*3) + 10,000] / 36
= (1,164 + 10,000) / 36
= 11,164/36
= $310

Number of years required to pay annual fee = 3 – 1 = 2 years
Total fees  = (1%*10,000) + 100*2 = $300
 

What is the loan repayment period? – Repayment periods are measured in terms of weeks, the number of days, months or even in several years. Different kinds of personal loans also vary regarding debt duration. Check how long you can pay the full amount of borrowed money depending on your capacity and convenience.

On GoBear, we list loans with tenures of minimum 1 year up to a maximum period of repayment of 7 years. The different tenures will affect your monthly repayment and total fees required to be paid.

Singaporean Citizens - Most loans in the country are offered to Singaporean citizens, typically between 21 and 70 years old. Some institutions also allow foreigners from certain countries to apply for bank personal loans.

An applicant also needs to file documents that prove his residence and identity, or government-issued IDs and clearances. In addition, proof of employment and employer details, financing requirements, your NRIC copy, the CPF statements submitted over the past 12 months and your latest original computerised payslip are needed. These details determine the maximum amount of money you can borrow. Banks also want their personal loan clients to have landline phones at home or in the office for verification purposes

Foreigners - Any foreigner in the country should have a minimum income of $42,000. You should be able to present a photocopy of your Passport, Employment Pass, original payslip and Latest Income Tax Notice of Assessment.

Debt consolidation is a refinancing program to help customers consolidate all unsecured debts or credit facilities usually at a lower interest rate. Debt consolidation is a scheme for customers to transfer all his debts from different lenders into one credit account.

Borrowing money doesn’t come free. Processing your loan involves a certain amount of fee to be deducted upon receipt of the money. Some lenders even include the first repayment and interest amount on the initial deduction. It helps to know what fees are involved with the application so you can manage your money accordingly.

Interest Rates

Interest rates are the charges bank imposes on your loan. Applied interest rate (AIR) refers to that flat or actual charge towards the full amount of money your borrowed in relation to the duration of the loan. On the other hand, effective interest rate (EIR) reflects the extra charges imposed on your account for loan processing and approval. EIR is the true total cost of the loan which every borrower should know about.

Other Fees

Aside from the interest rates, borrowers may also be charged with other fees including:

Early repayment fees – Lenders let you pay repayment charges in case you want to settle your date earlier than your agreed period. There are certain conditions by which these early repayment fees apply based on your loan contract.

Late repayment fee – Financial advisors have always discouraged missing any payment deadlines because lenders charge fees that will add up to your monthly obligation. Due dates are set for you to put conscious effort in repaying obligations as agreed.

Cancellation fee – Lenders allow for the cancellation of loans and use of other products if you pay the balance along with fees that go with the termination.

Processing fee – This is charged to the borrower for the processing of application for loan. The fees cover the processes including credit checks, administrative costs and property appraisals. A processing fee may be automatically deducted from the full loan amount Annual fee – This is charged to the borrower based on the average annual scheduled unpaid principal balance. Annual fees are due each month but is billed and collected on annual basis.

Loan conversion fee – You may have initially borrowed money with a floating interest and now you want to change it to fixed interest rate so a conversion fee will be charged to facilitate the process. The conversion fee is usually 2% of the loan outstanding balance.

Finding the best personal loan deal is easy if you understand what kind of financial agreement you are getting into. You should take not of the considerations below to make sure that your next financial obligation will resolve your cash flow woes and not the other way around.

What type of lender is offering the loan? – Moneylenders, credit unions, banks and other types of finance companies can provide you with immediate funds. However, lenders differ in terms and interest rates. Credit unions don’t require strict screening for borrowers while banks implement a more stringent screening process. These two also offer lower rates of interest as compared to pawnshops and moneylenders.

What is the APR and interest rate? – APR or Annual Percentage Rate and interest rate depend on your credit profile as a borrower. If you have good credit scores, then lenders charge lower rates. Traditional forms of personal loans are installment based which reduces the principal amount borrowed each time you pay until the entire credit is repaid in full. When applying, compare the advertised interest rate against the effective interest rate.

Why is Credit Score necessary? – Credit scores are important for lenders to assess your capacity to pay. Banks and credit unions go beyond the score as they also evaluate your entire credit history and profile. If your score is low, you might be entitled to apply for secured loans. Monitoring your credit health and regularly paying for your loans will ensure a better loan opportunity for you in the future.

What is the loan repayment period? – Repayment periods are measured in terms of weeks, number of days, months or even in several years. Different kinds of personal loans also vary in terms of debt duration. Check how long you can pay for the full amount of borrowed money depending on your capacity and convenience.

Is the loan bundled with another facility? – Some banks and other forms of lenders offer accompanying facility on your personal loan especially if you have an impressive credit profile. You may get personal loans bundled with secured overdraft or car financing. Depending on your need, check for the benefits each bundle offers before signing your loan contract.

Finding the best personal loan deal is easy if you understand what kind of financial agreement you are getting into.

You should consider the following ideas below to make sure that your next financial obligation will resolve your cash flow woes and not the other way around.

When applying for a personal loan, you need to decide whether between secured or unsecured one. Borrowing money from a secured loan requires a piece of collateral which may be in the form of a home or a car. In such agreement, the lender automatically takes possession of these valuables once you failed to pay according to agreement. Mortgage and car loans fall under this category.

On the other hand, unsecured loan does not require collateral but usually comes with higher interest rates. Student loans, credit cards and personal loans, in general, are considered unsecured loans.

Because of the collateral, secured loans offer faster application and easier approval. People who have bad credit history are advised to choose secured loans to guarantee payment of the money borrowed. In terms of savings, the low interest rates from a secured loan make it a better choice for those in money management woes.

Lending companies and banks provide personal loans to help those who need assistance with funds for easing into investments, consolidating debt or financing car repairs. It could also be used for personal needs like wedding, buying a car or paying bills.

For renovation or education purposes, more specialised loan products are designed to suit these needs. As not all personal loan lenders are the same, one must evaluate what they offer and how they differ before making the right selection. Be it the terms, interest rate or fees, these should be taken into equal consideration.

Here at GoBear, we do our best to update you with information on the terms of each personal loan product offered in Singapore. GoBear’s main feature is a comparison tool that generates the most favourable loan product for you, depending on your needs. We also provide tips on how to be a wise borrower, by disclosing important information about personal loan lenders and their products, as well as by alerting you about tips and other useful information via our blog.

Do you want to see which personal loan is the best for your needs? Fill out the form above to compare personal loans with GoBear using the loan calculator today!

Once you sign up for personal, you need to be aware of the interest rates that come with that debt. Most banks in Singapore peg the annual add-on interest rate at 4.5% to 8.3%. That percentage changes depending on the amount you borrow and the time it takes you to pay the borrowed money back.

Aside from personal loan interest rates, there are other loan-related fees you need to look out for. These fees include the disbursement fee (applies for every time you cash out money on your loan), the pre-payment and late payment fees (applies when you pay your debt before or past the due date scheduled on your loan terms), transactions in foreign currency (the exchange rates used to convert these transactions into local currency may vary day to day and book to book), finance charges for interest rates (if an outstanding balance is not fully or partially paid by the due date, interest will be charged on your amount owed) and the loan modification fee (applies when you want to change some details of your loan).