Personal loans act as your lifeguard when you really need some money. True to its name, this type of loan is very personal in nature as you can use it for absolutely any purpose, be it for your wedding or for repainting your home. These loans have competitive rates of interest and flexible repayment period. The rates of interest are decided based on various factors such as credit score, employment nature, etc.
|Bank Of China Personal Loan||6.38% p.a|
|Citibank Personal Loan||4.83% p.a|
|DBS Personal Loan||6.99% p.a|
|HSBC Personal Loan||4.7% p.a|
|Maybank Personal Loan||19.8% p.a|
|OCBC Personal Loan||8.18% p.a|
|POSB Personal Loan||6.99% p.a|
|Standard Chartered Personal Loan||6.88% p.a|
|UOB Personal Loan||8.00% p.a|
When you borrow funds, the lender will ask you to pay a percentage of the principal amount for using the money. This percentage is called the interest rate and it is calculated on an annual basis.
Interest rate for personal loans is calculated based on a range of factors and some of them have been explained above. Different banks use different methods for calculating the rate of interest. In most cases, it is a compound rate which is applied to the remaining loan amount along with all the fees and charges.
Your interest rate is calculated based on the following factors –
These are a few important factors that have an impact on your personal loan interest rate. Apart from these, there are also other factors which play a role in deciding your interest rate such as the institution from which you are taking the money from as banks and other financial institutions do not offer the same rate of interest.
The different ways to get a lower rate of interest are as follows –
There are other financial institutions and money lenders apart from banks that offer this type of loan in Singapore.