5 Benefits That a Personal Loan Brings to Your Life

Forming the majority of loans from both banks and licensed moneylenders, the personal loan is incredibly versatile for borrowers’ diverse purposes. With interest rates capped at 4% per month for licensed moneylenders and being fairly competitive for banks too, personal loans can be ideal to achieve your goals while also safeguarding your finances.

Here are 5 benefits that the best personal loans in Singapore provide.

1. They help you reach milestones earlier

We all aspire to various milestones in life, from having a memorable wedding to taking that dream vacation or honeymoon. Personal loans allow you to enjoy that dream when you desire, instead of having to save up for long periods before enjoying them.

This is especially useful for borrowers who have a limited window of opportunity to achieve these milestones, such as couples who want to hold their wedding on specific auspicious dates, or taking advantage of a heavily discounted travel package. Personal loans in Singapore are a great solution in these cases.

2. They offer transparent interest rates

None of us want to be trapped in the cycle of servicing loans with absurdly high interest rates or worse yet, loans with unclear interest structures or hidden fees. With interest rates capped at a maximum of 4% per month for personal loans through licensed moneylenders, they are a far more prudent option compared to the exorbitant interest rates charged by illegal money lenders, or ones that advertise low interest rates but charge several hidden fees instead!

The best personal loans in Singapore help you save greatly on interest payouts in the long run, letting you reach financial stability earlier and faster.

3. They supplement your salary

Personal loans are also great as payday loans when your monthly salary just falls short of the amount you require to pay that month’s bills. Often, this happens with unexpected bills, such as home repairs for leaks, or car repairs after a minor accident. Not paying these bills can lead to snowballing issues that may disrupt one’s financial plans.

But with a personal loan, you can stay on track with your finances, and still have enough to tide you through the short term, and on to your next paycheck.

4. They help you seize opportunities

Whether it is seizing a once-in-a-lifetime investment opportunity or making the most of Singapore’s various mega sales for expensive household appliances, a personal loan allows you to make full use of opportunities as they arise.

5. They protect your finances during emergencies

Medical emergencies can wreak havoc on one’s cash flow and savings, with surgeries and hospital bills incurring tens or even hundreds of thousands within a few weeks or months. Even for those with sufficient savings, there is often a long wait before one’s medical insurance can payout the full sum, leaving families strapped for cash overnight.

A medical loan (which is a type of personal loan) helps to bridge this gap and take care of medical bills while still helping to safeguard one’s living conditions and expenses. Thus, they help to ease things during troubled times.

Here’s a quick recap of the benefits of a personal loan:

1. They help you reach milestones earlier
2. They offer lower interest rates
3. They supplement your salary
4. They help you seize opportunities
5. They protect your finances during emergencies

Drop us a message at R2D Credit today and learn why our personal loans are the best in Singapore!