There are various financial institutions out there, and banks are the most prominent. When focused on traditional lenders, credit unions and banks are the first to come to mind. Now, it’s easier than ever to borrow money because you can do it online.
Most online lenders have personal loans with better terms. Regardless, each one is different, so you must research your options to figure out how much you must repay on the loan.
Many Singaporeans don’t look for loan alternatives or research the bank/company before sending in an application. In fact, many of these people spend about two hours evaluating the options. This can be quite costly and isn’t recommended.
Ideally, different lenders offer clues about the rates they charge and the other fees associated with their personal loans. It’s crucial to compare your options and choose a personal loan that meets your needs and situation. Here are a few tips to help you pick a bank for your personal loan:
Cost of the Loan
You should look at the overall cost of borrowing money before sending in an application. Focus on the interest rate the company offers. However, there are other aspects to consider, too. These include service fees. Generally, though, the bank offering lower interest rates is best because it means the overall loan is cheaper.
Still, you must be careful because a low interest rate could be a way to attract borrowers when the other costs are higher. Make sure you get a list of all the costs and fees for the loan before you apply. That way, you have all the information and can make an informed decision.
Credibility and Transparency
Checking on the credibility and transparency of the bank is important. Though Money Smart lets you compare personal loans to find the right one, it’s still a good idea to do personal research on each bank. That way, you know that it’s credible. Read online reviews and get to know it before deciding.
Most people don’t think about customer service when choosing a bank for a personal loan. However, if you’re borrowing money online, you may be paying back the loan for five years. That’s a long time to deal with one entity.
There’s a good chance you might need help with something relating to your loan at some point. Regardless of why you require assistance, you don’t want to wait for hours for someone to receive your call or get back to you.
Terms and Conditions
The terms and conditions include the basic information you must know, such as early repayment penalties, loan duration, and payment schedule. It’s up to you to read through the loan contract to get all the details. Sometimes, it’s hard to understand the information. If that’s the case, make sure you ask a customer service representative before signing anything.
There are many banks out there offering personal loans to people. However, you must choose the one that meets all of your needs. Therefore, don’t just focus on the interest rates, processing fees, and repayment plans. Take a look at the bank offering the loan and do more research on it to make sure it’s the right choice for you.