There are many kinds of loans; people are taking these loans for different purposes, such as personal loan, car loan, business loan, house loan, payday loan, and student loan. The names of these loans make things easier for people to understand them. All these types of loans have different types of rules and regulations and have different conditions. All these types of loans also have different interest rates. This article will help people to understand all these types of loan are and what things are required to apply for these types of loans https://easycredit.com.sg.
Personal loan is the most common type of loan. This loan has been divided into two different types, secured loan and unsecured loan. Secured loan is the types of loan, which require guarantee or collateral. This type of loan has low interest rate but the lender keep power over the lender. He can sell the collateral to get his money in case the borrower fails to return the money. Unsecured personal loan is the type of loan in which borrower does not submit any kind of collateral. In this type of loan the borrower does not require any kind of security to apply for the loan, that is why this type of loan has high interest rate.
Car loan is a secured loan in which a person needs to submit a check with after due date or he needs to show his job or monthly income to make sure that he can return the loan. This type of loan is to purchase car and help those people who do not have enough cash. They pay some advance amount to apply for the loan. The best way to apply for car loan is through banks. The bank will give the money or it will purchase the car on the borrower’s behalf and the borrower will return the principal amount of the loan with interest rate. The maximum time to return this loan is 5 years.
House loan has the longest time of returning the money. This type of loan help people who do not have money to purchase their own house. They take the loan from banks or money lending companies. This type of loan is secured loan because if the borrower cannot return the loan, the lender can cease the house and sell it. The borrower can take at least 25 years to return the loan.
Payday loan is small amount loan for short time. People take this loan for emergencies such as house repair, car repair, emergency school fees, and such things. This loan is unsecured loan, which does not require any kind of collateral or guarantee. This type of loan has low interest rate because in this type of loan, lender put his money on risk by trusting unknown people with it. The best thing about this loan is that people can apply for it from their houses.
Licensed moneylender in sg offer all these types of loans but the rules and regulations of this country is a little tough then all other countries and that is to make sure that the lenders are not cheating with people who apply for the loan to resolve their financial issues.