Is it hard to get a line of credit?
- As long as you meet the eligibility conditions of the bank, it isn’t hard to get a line of credit. If you are a cardholder, you’d even get calls from the bank encouraging you to do so. But, don’t do it unless absolutely necessary.
Is it a good idea to get a personal loan?
- The question doesn’t have a black-and-white answer. The best recommendation we can give is that it is okay to get a personal loan as a last resort. Of course, it is better to exercise prudence on your day-to-day expenditure such that you have reserve funds and don’t ever need a personal loan. However, there may be situations where you suddenly require a large amount of cash and a personal loan can tide you over. If you have chalked up credit card debt, a personal loan is definitely a good idea as it has lower interest rates than credit cards. Take note that taking on many personal loans with no clear plan of repayment can hurt your credit rating in the long run.
Which bank offers the best personal loan in Singapore?
- For now, it seems like HSBC, OCBC, POSB, DBS and Citibank are providing the best interest rates and personal loan promotions in Singapore. You can compare them based on effective interest rates, loan repayment tenures and minimum annual income requirement with MoneySmart’s comparison tool.
What does the effective interest rate mean?
- The effective interest rate takes into account the nominal interest rates and the compounding frequency of the loan. This is why two different personal loans with the same interest rate can have different effective interest rates. When comparing, use the EIR as it provides a more accurate picture of how much interest you are actually paying.
Frequently Asked Questions