People in financial crunches often tend to borrow money from banks, private lenders or financial institutions at a fixed rate of interest with a tenure of repayment. This is called a loan. The loan amount is provided by different persons or institutions such as a bank, individuals, governments, financial institutes, family or friends etc. There are several firms good at money lending in Toa Payoh that provide loans.
Several types of loans are available that differ based on the interest rate, repayment of tenure of loan, etc. Some types of loans are listed below.
- Personal loan
- Student loan
- Small business loan
Among these, the one which is the most famous and preferred type of loan is a personal loan, wonder why? Let us understand this in this article ahead.
Personal loans come to the rescue at the time of financial emergencies and crunches. It helps with personal expenses such as debt consolidation, home renovation, weddings, vacations, to help friends or relatives, etc. In personal loans, you will be charged a fixed rate of interest. Unlike other loans, here you get to choose your repayment tenure from 6 months to 3 years as per your capacity.
A personal loan is preferred due to it being an unsecured type of loan, and gives you the freedom to use it as per your need and desires. And based on the desires, these are some of the types of personal loans.
House renovation and Improvement loan
This loan amount is used for renovation and repairing the house. It is advised to keep your house updated and in good condition, to save up in future.
This is a type of personal loan used to finance wedding costs. Expenses during a wedding sometimes get unbalanced and not everyone can fulfil them. At such time, the wedding loan can be borrowed to pay off all the marriage-related expenses. Aspects like the rate of interest and contracts are quite simple and hassle-free.
This personal loan is used for funding expenses during medical emergencies. It includes medical living expenses including medicines, hospital bills, healthy food, etc. These loans are usually taken for a sudden urgent requirement of funds.
A personal loan is used to provide financial aid for the personal requirements of the people. The various types of personal loans cover all the needs and desires of a person from medical emergencies to vacation expenses. Choose a loan after considering your purpose, requirement and capability to repay.