What Are Monthly Installment Loans In Singapore?
August 16, 2022
An installment loan is a type of loan that you borrow and pay back in regular installments. It’s a great financial option, especially when difficult situations requiring emergency cash arise.
However, even though you need the cash, you must make sure you borrow from the right lender.
When it comes to monthly installment loans, there are several things you need to think about. One is the type of monthly installment loan that you need, be it secured or unsecured.
Another thing you will have to consider is the costs involved in each loan. These can differ depending on the lender, as well as your credit score, and your income.
Finally, you need to think about how much money you want to borrow when choosing a monthly installment loan.
In this article, we look at what monthly installments are and what you need to take note of.
What Are Monthly Installment Loans?
Installment loans are commercial and personal loans given to borrowers that require regular payments.
The regular payments the borrower makes include a principal and interest portion. With most installment loans, the regular payments are fixed, meaning the borrower pays a certain amount over a period of time.
Common examples of installment loans include mortgages and auto loans.
How Do Installment Loans Work?
Installment loans are given to the borrower in a lump sum.
The borrower then pays back the loan in regular installments over a period of time. They are either secured with collateral like a car or house, or unsecured.
For instance, personal loans are installment loans with a loan tenure that is at least three months. Using your credit information, the lender will decide the loan amount you qualify for, the rate, and the loan tenure.
The lender will send you a quotation of the loan amount you can access, with interest and a repayment period.
Benefits Of Installment Loans
Installment loans have several benefits, making them an attractive option. Below are reasons why you can consider opting for installment loans.
- Fixed Monthly Payments Are Easier To Budget
Installment loans have a payment schedule that shows the expected payment date and the amount. This makes it easy to budget your money.
- The Cost Of Large Expenses Is Spread Over A Period Of Time
With installment loans, it is possible to purchase big-ticket items and pay for them over time. This makes it easy to manage your cashflow without constraints.
- Installment Loans Improve Your Credit Score Over Time
Paying your installments on time shows on your credit history.
In fact, consistent payment of the installments is an excellent way to improve your credit score as a borrower.
It shows that you are capable of managing your finances, and that improves your credit score.
- Debt Payoff Is Predetermined
The date you are expected to pay the installment has been decided beforehand. That gives you ample time to organise your finances.
Is A Monthly Installment Loan The Same As A Payday Loan?
Monthly installments and payday loans are both types of installment loans.
Payday loans are installment loans that don’t require credit checks, have a higher interest rate, and a much shorter loan tenure.
On the other hand, monthly installment loans include mortgages and auto loans, which have a longer tenure and lower interest rates.
Here is a summary of the differences between payday loans and monthly installment loans.
|Installment loans||Payday loans|
|Due date||They are due on a monthly basis until the loan has been fully paid||Mostly due on payday|
|Interest rate||Lower interest as compared to payday loans||Extremely high interest especially in case of default.|
|Credit check||Legitimate installment loans require a credit check||Do not require a credit check|
Monthly Instalment Loans From Credit Thirty3
As a licensed money lender, Credit Thirty3 understands the unexpected can happen at any time.
We are the financial partner you need in the event of an emergency. Our monthly installment loans can help you deal with any financial crisis.
Here are the main features of our monthly installment loans:
- Flexible monthly repayments
- Loan tenures that suit your needs
- Favourable interest rates
- Ideal for short- and long-term loans
How To Check And Identify A Singapore Licensed Money Lender
Where To Apply For The Best Personal Loans In Singapore
Comprehensive Guide To Unsecured Loans In Singapore
Why You Should Choose A Monthly Installment Loan From Credit Thirty3?
Get A Loan In A Few Easy Steps
You can apply through the online portal, making it easy to send in your loan request. Our easy and efficient process saves you time and hassle.
Flexibility To Pay Over A Long Period Of Time
Our loans are designed with you – the borrower – in mind. We offer longer repayment periods, giving you the much-needed time to repay the loan.
Low Interest Rates
We offer the best interest rates in town. Our rates are lower, making the loans affordable.
Our Application Process
- Call or apply online.
You can apply for the loan online. Fill in our online application form or call to book an appointment.
- Visit our office.
A face-face meeting helps us to create a customised installment loan that suits your needs.
- Agree on terms and finalise the loan application.
Read our terms, accept them and sign the contract.
- Receive your loan.
Check that the correct amount has been disbursed to you.
Can I Apply For A Monthly Installment Loan If I Have Bad Credit?
Yes, you are eligible for a monthly installment loan even with bad credit. However, you will qualify for lower amounts. We work with those with poor credit ratings to design loans to suit their needs.
We encourage those with poor credit ratings to consider getting a guarantor or taking out a secured loan. That will help such borrowers to build their credit ratings so that they can eventually borrow more.
How Much Can I Borrow For A Monthly Installment Loan?
- Be at least 18 years old
- Have a starting salary of $1,500
- Have proof of income and residence
If you are eligible for the loan, the amount you can borrow will depend on your income. Below are the limits set for unsecured loans.
|Annual Income||Singapore citizen and permanent resident||Foreigners residing in Singapore|
|Less than $10,000||$3,000||$500|
|More than $20,000||6x the monthly income||6x the monthly income|
Installment loans are a great way to finance expensive purchases or consolidate debt. By making fixed regular payments, you can budget better and improve your credit score.
There are many different types of installment loans and we hope you have received the guidance you need. Before you take any loan, be sure to shop around and choose one that suits your needs.