Assume you want to apply for the lowest interest rate personal loan Singapore today, what would first come to mind? If you are like most household owners, you will most likely start thinking about the best lender to deal with.
Major Pitfall in Low Interest Loan Search
However, this is a pitfall most borrowers fall into time and again. It is high time you learnt how to extricate yourself from this trap. For starters, Singapore has an amazing array of credible lenders and there is no dearth of choices.
If you listen to most borrowers, the problem in obtaining financing lies with their approach. Most will recount how they identified a very good deal only to fail at the last minute. In short, they didn’t actually appreciate the rigors of loan eligibility and the application process.
Getting it Right in Personal Loan Application
The power of loan approval lies in your hands. As such, you need to get insight on how you can activate this power to get quick financing. Here are some factors to win your desired financing without much hassle:
- Understand your income: Before you start searching for financing options, look at your current income because it will be used to determine the loan amount you can get. If you already have more loans, you will have to prepare for less financing.
- Assess your current financial situation: If you already have a bad credit score and you are struggling with more loans, you need to look for a lender who will not keenly query your financial health. Most moneylenders just want a regular flow of income, but your bank will have to look at the report. As such, bypass the bank and go straight to a licensed moneylender.
- Query your eligibility: It is time to get your NRIC card ready, utility bills to prove your residency, computerized pay slips, if you are salaried, or alternatively CPF statements going back several months. If you are self-employed, you need income tax statements at least for the last two years. Foreigners require a valid employment pass, tenancy agreement, appointment letter and a bank statement.
These conditions may vary from one lender to the other in terms of the number of documents required. However, these are the main types of documentation required.
Once you have prepared all the documents, get ready for the actual search. You must have access to the internet if you want a quick loan. The lowest interest rate personal loan Singapore deals are found online hence get ready to compare tens of lenders.
In short, you have to be proactive in order to get the best loan deal. It is a task that calls for your full attention, but the end result is financial independence.