Personal credits are becoming more and more popular all over the world. In a difficult economy, people turn to banks and microfinance institutions for personal credits. They can be a very useful tool that can help solve temporary financial problems and get back on the feet. However, it is a serious commitment and the decision to take a loan should be infirmed. Things you need to consider before taking a personal loan from the top moneylenders in Singapore (

The more documents, the lower the loan rate

The bank or microfinance institution will issue a personal credit at a lower rate if they see you as a responsible and trustworthy. You must provide evidence that you are a reliable borrower.

  • Positive credit history

It will improve your chances if you have a positive credit history. For example, you already had a personal loan and made all the payments on time. 

  • Salary 

A salary is always an important criterion for the banks. Bring the official documents that will verify your salary. Moreover, documents confirming your financial viability will be useful: a certificate of registration of a car, a foreign passport, a voluntary medical insurance policy or a comprehensive insurance policy, account statements from other banks.

Read the contract before signing 

You should never sign anything without studying it carefully first. Pay the closest attention to text that is written in small print. Take a person who understands the financial topic and whom you trust with you. Clarify everything that is incomprehensible, ask questions. You should always pay close attention to all the numbers: commission, interest, etc. The main thing you should always look for in a contract is the true cost of the loan. It includes not only the interest rate but also various commissions and insurance premiums. 

Minimum payments are unprofitable

If every month you make only a minimum payment for a loan, the money will mostly cover only the bank’s interest. And only a small part of the payment goes to cover the main debt. Although it is legal and very profitable for the bank or microfinance institution, it is disadvantageous for you. To avoid overpayments, you must try to pay more than the minimum every month and pay off the debt ahead of schedule.

Inform the bank if you have any financial difficulties

It is never a good idea to stop returning bank calls if you missed the payment. If you have financial difficulties and it has become impossible to pay off the loan, inform your bank.  There is a decent chance that the conditions of the loan will be reviewed. It is called restructuring.