Banks offer people with various types of loans. It depends on your requirement, eligibility and time constraint to choose a certain type of loan. These loans vary from one another in terms of interest rate, repayment time, and the maximum credit amount that can be availed. Therefore, it is necessary to consciously look through the types of loans offered by a bank before borrowing.

Cash Loan

A cash loan is also known as a personal loan. It is a loan given by the banks to the borrower for personal use. It is usually an unsecured loan, as the borrower does not need to pledge any assets to the bank as collateral.

The maximum amount of such a loan depends on credibility, income, and age of the borrower. Generally, it is up to 4 times the monthly income of the person. The tenure of the loan is a maximum of 5 years and the borrower must be aged less than 60 years. Usually, personal loans have a rate of interest in the range of 4-12%. In addition, banks also charge some amount as processing fee and insurance fee.

Usually, the banks take some time to process the loan. However, if you are in very urgent need of money, fast cash loan money lenders in Singapore can help you.

Educational Loan

Educational loans usually have a low rate of interest compared to cash loans but has relatively difficult processing. It can be used to cover tuition fees, accommodation fees, and daily expenses. Further, the borrower of education loan can claim money for buying books, laptops, and other study related things. The advantage of an educational loan is that you either choose to repay while studying or after your graduation.

Home Loan

Home loans are considered as premium loans because to many home is a symbol of their status in the society. It can be borrowed for both private properties and flats. Before applying for a loan it always necessary to think about the amount you are eligible to borrow and the repayment possibilities.

Car Loan

A shortage in the amount to buy a new or used car can be covered using a car loan. A 60% of the total car’s price if it is less than SG$20,000 or 50% if it costs more than SG$20,000 can be availed from the banks with a maximum tenure of 5 years.