Personal Loan

Latest
Personal Loan
Rate

Updated 26 August 2020


Personal Loan

FLAT RATE

4.98%


Personal Loan

FLAT RATE

4.98%

Updated 26 August 2020

Personal Loan

A Personal Loan, more commonly known as Line of Credit, is a revolving credit line. It allows you to borrow money from the bank to tide over difficult times, subject to specific eligibility criteria. It fulfills the same purpose as that of a Personal Loan whilst having the features of a credit card.

In comparison to a personal loan package that deposits the entire sum borrowed into your bank account, a Line of Credit grants you continued access to the funds. These funds are available for usage whenever necessary, similar to that of a credit card. Should you choose to draw on some of the funds, you are responsible for paying back the amount withdrawn and the accrued interest. This can be in the form of daily, monthly or yearly repayments throughout an open-ended loan tenure. The amount repayable is also flexible, depending on the bank’s terms. Some banks may set their minimum repayment amount as a percentage of the outstanding balance, others may set a fixed repayment amount.

In deciding between a Line of Credit and a Personal Loan, take into consideration the interest rates, the loan tenure, the loan type, the repayment terms and the fees involved. Here is a quick comparison between a Line of Credit and a Personal Loan:

Personal Loan

A Personal Loan, more commonly known as Line of Credit, is a revolving credit line. It allows you to borrow money from the bank to tide over difficult times, subject to specific eligibility criteria. It fulfills the same purpose as that of a Personal Loan whilst having the features of a credit card.

In comparison to a personal loan package that deposits the entire sum borrowed into your bank account, a Line of Credit grants you continued access to the funds. These funds are available for usage whenever necessary, similar to that of a credit card. Should you choose to draw on some of the funds, you are responsible for paying back the amount withdrawn and the accrued interest. This can be in the form of daily, monthly or yearly repayments throughout an open-ended loan tenure. The amount repayable is also flexible, depending on the bank’s terms. Some banks may set their minimum repayment amount as a percentage of the outstanding balance, others may set a fixed repayment amount.

In deciding between a Line of Credit and a Personal Loan, take into consideration the interest rates, the loan tenure, the loan type, the repayment terms and the fees involved. Here is a quick comparison between a Line of Credit and a Personal Loan:

Line of Credit Personal Loan
Interest Rates
Variable
Fixed
Loan Tenure
Open-ended
Up to 7 Years
Loan Type
Revolving Loan
Term Loan
Fee Involved
Annual fees
One-time
processing fee
Early Repayment
Penalty

The Pros and Cons

Line of Credit Personal Loan
Interest Rates
Variable
Fixed
Loan Tenure
Open-ended
Up to 7 Years
Loan Type
Revolving Loan
Term Loan
Fee Involved
Annual fees
One-time
processing fee
Early Repay-ment Penalty
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Why A Loan Broker

A Loan Broker is a financial expert who serves as a capable middleman between business owners, the bankers and potential investors. Resourceful, experienced and knowledgeable, a Loan Broker can

Home loan
question-sign-hand-drawn-outline copy

Why A Loan Broker

A Loan Broker is a financial expert who serves as a capable middleman between business owners, the bankers and potential investors. Resourceful, experienced and knowledgeable, a Loan Broker can-

Home loan

Updated 1 August 2020