Key Points on Getting Low Interest Personal Loans in Singapore

It is well known that an unsecured loan usually comes with higher interest rate as lenders want to cover for the risks. However, thanks to the rising competition in the loan market in Singapore, now even unsecured loans are being offered at low interest rate. There are lots of lenders offering unsecured low interest personal loan for any personal purpose like home improvements, buying car, wedding, holiday tour, debt consolidation etc.

However, there are certain conditions that you are required to fulfill in order to get the low interest personal loan Singapore First of all you must have a good record of paying off past loans in time. In other words lenders would offer unsecured personal loans at low interest rate to those borrowers who do not have any late payment, payment defaults or any county court judgments against them. Such a clean borrower is seen as having almost no risks for the lender.

A lender judges your credit history by seeing your credit score. Generally, on FICO credit score, getting a credit score above 650 is considered as good. The higher the credit score you get, the lower will be the interest rate charged by the lender as risks get reduced. So before you apply for the loan you should make sure that your credit score is at least around the acceptable range.

Secondly, besides good credit history, your repaying capability of the loan also matters. Lenders want their loan installments to be returned in time. So if you earn well and have been maintaining a sound bank balance regularly then lender is more assured of safe and timely return of the loan and is willing to reduced interest rate.

Also make sure to compare lenders in order to know which lender is offering unsecured loans at suitable rate. This also is a way to unsecured low interest personal loans. Usually online lenders have lower rate personal loans but you must compare them as well. Ask for loan rate quotes for comparison.

A low interest personal loan Singapore is obtainable for virtually any situation. Although the low-interest loans are very difficult to apply for, other alternatives do exist for less financially strong borrowers. Compare the programs; be aware of what’s available to you. With the knowledge, you’ll be able to find the best lender that’s right for your low interest personal loan requirement.