There is almost no chance of you finding a zero per cent interest rate on any personal loan. What you will find though, it that there are interest rates that local laws will govern when you take out a loan. You will need to understand those rates, so you can avoid predatory lenders.
Ever since 1 June 2012, there have been laws in place that require Singapore lenders to disclose both the computed and disclosed dollar amounts of any loan. With this information, you can get a better understanding of your loan's final cost.
An example of this will be when you look at a secured loan, while your annual salary is below S$30,000. In this case, the most the effective interest rate can legally be is 13 per cent. However, if you have a higher annual salary, the interest rate could potentially increase and that figure will be included in your agreement that you make with the financial institution. Unsecured loans in turn, will almost always have a higher effective interest rate, so you need to note that. If you make less than S$30,000 you can anticipate as much as 20 per cent.
Part of the interest determination comes from some specific items that are used in this process and they include:
Installment Payment Amounts How even the installment payment amounts are Duration of the loan Number of installment payments that will be made Total money borrowed
Keep in mind that if at any time, the money lender doesn't disclose to you the financial factors of your loan, they have committed an offense. More importantly, it is the sign of a predatory lender and one you will not want to end up borrowing from.
Ever since 1 June 2012, there have been laws in place that require Singapore lenders to disclose both the computed and disclosed dollar amounts of any loan. With this information, you can get a better understanding of your loan's final cost.
An example of this will be when you look at a secured loan, while your annual salary is below S$30,000. In this case, the most the effective interest rate can legally be is 13 per cent. However, if you have a higher annual salary, the interest rate could potentially increase and that figure will be included in your agreement that you make with the financial institution. Unsecured loans in turn, will almost always have a higher effective interest rate, so you need to note that. If you make less than S$30,000 you can anticipate as much as 20 per cent.
Part of the interest determination comes from some specific items that are used in this process and they include:
Installment Payment Amounts How even the installment payment amounts are Duration of the loan Number of installment payments that will be made Total money borrowed
Keep in mind that if at any time, the money lender doesn't disclose to you the financial factors of your loan, they have committed an offense. More importantly, it is the sign of a predatory lender and one you will not want to end up borrowing from.
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