The majority of people are holding themselves back when it comes to applying for a personal loan, but applying for this kind of loan solely depends on the person itself.
If you are in dire need of cash and you have no assets, but you own a credit card, then a personal loan would best fit your needs.
This is because if you opt to withdraw cash through your credit card, you will be paying more than what you have borrowed with a very hefty interest rate compared to a personal loan. However, if you have assets that you can put as collateral.
However, there are things that you have to learn about personal loans which are its high-interest rate, partial payments, and its burden of payment. To learn more, here is a detailed explanation below courtesy of the best legal licensed moneylender in Singapore.
- High-interest rate– personal loans come with high-interest rates knowing that it does not require any collateral and security knowing that the lenders regard this type of loan as a high risk.
- Partial payments– Also, it has no partial payments as the majority of lenders do not allow this which means that you have to end up paying the loan for the entire tenure of it.
- The burden of payment– The majority of lenders always insist on their customers to maintain a good credit score that is why it is very risky especially if you fail to pay one of your monthly dues or you paid late with personal loans.