Things to consider before Diving for Personal Loan in Singapore
We'll take a deep dive into the topic of personal loans in this post to assist you choose the best loan for your requirements and the safeguards you should take. Here are some things to think about while applying for a personal loan: Understand the interest rate. You'll almost certainly come across these two terms: Applied Rate (AR) and Effective Interest Rate (EIR) (EIR). AR assumes that the loan principle remains constant during the loan term and does not account for the fact that each payment reduces the principal amount. If you pay on time, the EIR represents the real cost of borrowing. It is determined by taking into account the progressive reduction in principle during the loan term. Keep in mind that EIR should be compared using the same loan amount and term. Make the most of your money. Paying down high-interest debt is the best option. Consider a case where you're paying a quarter-percentage-point-per-year or more on your credit card bill. If you ca...