Understanding the Deals Essential for Your Interests

Loans are largely different to their purpose and maturity. Most commonly, we encounter non-purpose and purposeful loans. While non-purpose credits are generally offered and approved for shorter terms, purpose-based loans are usually linked to longer maturities.

Non-subsidized loans

Non-subsidized loans allow the use of financial resources according to the needs and wishes of consumers (beneficiaries of loans).

Types of Unemployment Loans

Framework credit (allowed overdraft on current account)

The most commonly used non-purpose credit is due to the ease of access, and the amount of the credit facility is usually dependent on the amount of regular monthly cash benefits of the current account holder. Great options for the best interest rate refinance home loan in Singapore is there for the proper deals now.

Cash loan

It is approved for liquidity problems, whereby cash is paid to the borrower’s account, which is then used for its own needs and for the purpose it wishes.

Lombard credit

It is approved on the basis of the pledge of real movable values ​​(deposit, insurance policy, investment fund share, housing savings, securities …) serving as collateral for loan repayment. The amount of the loan is usually less than the market value of the pledge, and the advantage of such loans is that the borrower remains the owner of the pledge (unless the loan is returned under the agreed terms).

Mortgage loan

Cash loan with real estate as an insurance instrument.

Dedicated loans

Dedicated loans are only those loans where the funds are to be spent solely for the purpose for which they are approved and generally have a slightly lower interest rate than the non-performing loans.

Types of purposeful loans

Consumer credit

Usually it is approved on the basis of a pre-invoice for the purchase of some goods or on the basis of a bid issued by the seller. They are approved for various purposes such as for the purchase of furniture, white goods, technical appliances, automotive equipment, building materials. With the most trusted money lender in Singapore the solutions will come handy now.

Motor vehicle purchase credit

It is approved on the basis of a pre-invoice for the purchase of a vehicle issued by the seller or on the basis of a transfer agreement on ownership of the vehicle subject of the loan.

Student / student loan

Approved for the cost of studying (in the country and abroad) and can also be used to pay the tuition fees for private secondary education.

Housing loan

These are approved for the purchase, construction or adaptation of a house or apartment. If the approved credit in full is not paid directly to the seller or contractor’s account, the purpose of using the remaining amount is to be documented.

What to Consider Before Choosing a Debt Settlement

Prior to making a loan agreement, it is necessary to analyze all potential costs so that the total final cost would not cause unpleasant surprises and lead to the inability to meet the contractual obligations. Primary analysis is easiest to implement by looking at the effective interest rate (EKS) because EKS represents a unique way of showing the total cost of the loan and consequently makes it easier to compare the banking conditions for loan approval.

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