All About Loan In Singapore
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Is A Personal Loan Really Necessary?

It is interesting how Singapore have embraced personal loans so much that so many lenders have popped up to serve this market. Not only banks have be active in this market for people in urgent need of cash, licensed money lenders are fast becoming a key segment providing these services. Until recently when money lenders are required to follow strict guidelines on advertising their services, we could find advertisements all over the place including mass media broadcasting how easy it is to get a loan.

Further data of how well this market is doing can be reflected from the IPO of MaxiCash. But before you dig your hands into personal loans, you should first consider whether you really need cash that badly. Interest rates that you will pay could be high. And failure to repay the liable loans promptly can affect your personal credit score. Let’s just look at 3 of the most common reasons for taking a loan in Singapore and whether you really need it.

Home renovation. In case you are not aware, there are renovation loans that cater to your home decor needs. Many people are unable to get the needed loan quantum and amounts to finance what they want to renovate, therefore taking up a personal loan on top of the renovation loans. When this situation occurs, you have to ask yourself whether it is worth it and whether you been overcharged by your contractor. Many home owners want to build their dream home and that is understandable. But is it really worthwhile to overspend so much on decorations that you have to compromise your family lifestyle? Remember to get quotes from a few interior designers so that you can judge the average market rates.

Investments. A huge investment opportunity might have come up that you simply cannot miss. Usually investment opportunities that have a time sensitive feature so tight that you cannot wait are too good to be true. Not that they are fraud. But the investment broker will most likely be painting a beautiful picture of these investments withholding derogatory information that can harm sales. Giving a tight deadline creates urgency and lesser time for you to do your own due diligence. Ask yourself these questions. Are the returns so big that you cannot miss the opportunity? How long do you expect to get your money back? Is it a legitimate investment opportunity? If it is based overseas, why come here to find investors?

Cash outflow. As adults, we are always liable to long term payments in one way or another. It could be an annual insurance premium, COE renewals, property tax, or even school fees for your children. The thing is these situations are planned and decided way before you run into a tight cash squeeze. So before you commit to a long term financial plan that needs to to pay over years, you should think twice and plan properly on how you are going to repay them. Having to rely to personal loans to meet your personal financial commitments is a sure way to get you in financial trouble in future.