Personal Loan (commonly known as Cash loan in Singapore) is a loan establish between banks (or finance companies) and borrower for personal use. Personal loan is categories as unsecured loan as the borrower do not need to pledge any assets to the finance company as collateral.
For some banks or finance companies, personal loan is known as “instant cash”, “fast cash”, “advance cash”, “smart cash”, “cash one” etc.
The amount of loan available for the borrower depends of the credibility, income and age of the borrower. Generally, the maximum loan available is up to 4 times the borrower monthly income; the maximum personal loan tenure available is capped at 5 years; the maximum personal loan available is capped at $100,000; the maximum age for applicant is 60 years old.
Singapore Personal Loan is very common as many borrowers use this as a leveraging instrument. As low as a monthly installment of $200, a borrower can loan up to $10,000 cash. However, many borrowers are not aware of the personal loan interest calculation.
Generally, personal loan interest range from 4-12% annually.
Take note there might be additional charges like admin fee (also known as processing fee) – the fee for the bank to process and approved borrower’s personal loan. And also insurance fee – this charges is to pay bank for insurance coverage of your loan amount should it got mishandled (example: funds was transfer to wrong account).