Personal Financing

A Personal Loan in Singapore is a type of unsecured loan that individuals can obtain from banks or licensed financial institutions. Unlike a home loan or car loan, it's not tied to a specific asset (like a house or car) as collateral. This means the lender assesses your creditworthiness based primarily on your income, credit history, and ability to repay. 

Key features

1) Unsecured: This is the most defining feature. You don't need to put up any assets (like property or vehicles) as collateral to get the loan. This reduces the borrower's immediate risk but often results in higher interest rates compared to secured loans because the lender faces higher risk.

2) Lump Sum Disbursement: You receive the full approved loan amount at once, making it suitable for one-time, larger expenses.

3) Fixed Repayment Schedule: You'll have a clear repayment plan with set monthly instalments over a predetermined loan tenure (e.g., 1 to 7 years). This provides predictability for budgeting.

4) Relatively Quick Approval: Compared to some secured loans, personal loans can often be approved and disbursed relatively quickly, sometimes within days or even hours.