Types of Loans Available in Singapore

Over the last four decades, the economy of Singapore has grown from strength to strength. The country has moved from being a third world country to a second world economy. The poverty index has greatly come down; productivity has multiplied and so has the GDP of the country. This automatically has raised the par capita and consequently the standards of living of the people of Singapore.

Growth and application of up to date technology in production process cannot be over emphasized. Internet based technology has boosted production. Through internet, new methods of money transfer have been innovated. Methods of payment have been made easier not to mention the vast market created by the internet. Even methods of advertising and product promotion have gone digital. For instance, social media marketing is now accounting for a lot of sales made by businesses today in Singapore.

The financial sector has also not been left behind since there need to be enough credit in the economy to finance this growth. Financial institutions have developed loan packages to suit customer needs. Currently, there are several types of Singapore loans.

Educational loans
These are kind of loans specifically designed to finance education to the students of Singapore. Loans are available to both post postgraduate and undergraduate students. Academic researches can also be financed using these educational loans. Students are not expected to be financially stable and therefore these loans attract minimum interests.

Business loans
Business growth and expansion is very crucial. For this reason, financial institutions have developed custom made loans to finance start up and expansion of small scale businesses which are regarded as prime movers of the economy. Micro finance institutions have grown to finance small-scale businesses at a reasonable finance charge. Loan facilities are also available to large businesses. Most business loans do not require security apart from the business itself.

Personal loans
These are credit facilities made for the purposes of individuals. They can either be protected or unprotected. Individuals can access credit facilities to finance such activities like home buying. Home loans enable Singapore citizens to own homes which would not be possible if they where to use their income. A personal loan in Singapore is very convenient since it is paid in small amounts over a long period of time such that its impact on clients’ financial well being is minimal.

Cash loans
More often that not, people find themselves cash strapped. This scenario is occasioned by unforeseen events which are not usually in the original budget. To sort out this emergency, the financial institutions in Singapore have these payday loans. They are usually very easy to acquire as they do not require much formalities. Application and Processing are done online and can take at most twenty four hours to be credited to the clients account after the application.

Foreigner loans
Loan facilities in Singapore are not limited to the nationals of Singapore. Foreign citizens residing doing business in Singapore can access loan facilities in Singapore as long as they prove their ability to pay. Any foreigner loan in Singapore is not discriminatory.

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