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How Can You Use A Personal Loan To Pay Off Debt?

Personal Loan To Pay Off Debt

If you are wondering where to get personal loan in Singapore, it is very easy as you can find many banks as well as a financial institution that will be ready to provide you with any loan that you request, but everyone has a standard procedure.

The procedure will include the checking of all the documents that are provided by you it means that you have to provide document like a proof that you are a Singaporean citizen and also have to give them paperwork to show that you have a home that is owned by you or is under your name and you are living in it by paying monthly rent.

Then the bank or the institution will send a team of people to the area where you live, and then they will start asking your neighbours as well as local shopkeepers in the area to make sure that you were telling the truth and then they will look at the main thing that is your credit score.

They will then look at your credit score and then they will ask for how much amount of money you want for a loan and then according to the credit score they will decide whether they want to give you the whole amount that you have requested or will give you the amount that they feel is right.

There are many people who take a loan in Singapore as it is also called as a business capital due to presence of many companies in the country and also many banks providing their service to almost everyone who approaches them.

People usually take a personal loan for wedding in Singapore as it is also called as the destination to visit as it is also considered in the list of 10 places to visit while going on a vacation or even a honeymoon or a solo trip also.

What is debt consolidation?

Debt consolidation is a term that is used by those people who have a fixed salary in their workplace, and this means that you are taking another loan to pay off any remaining debt such as any past loan that is remaining to be repaid or you want to pay an EMI for a thing that you might have taken in the past and can also be used for property releasing from the bank if you have kept something as a mortgage.

The word debt means that you or someone else owes money it can either be you to pay back someone else’s money or they have to pay the money back to you as they have taken a loan from you.

The word consolidation literally means to bring everything together, and when you combine both the word together it makes debt consolidation, and that means to bring all the money back together wither it is that you have to pay off to someone or you are pending to receive money from someone.

How does debt consolidation plan work?

This plan was created so that a bank or a financial institution can help whoever wants money to pay back any loan taken it can either be a person who wants to repay back a loan that they have taken or it can also be a company that wants to take together all the amount of money that they have to pay back to a certain company or a bank and can use this facility to pay it back.

This facility is provided at a lower rate of interest than all the other loan as they are taken to buy things for self-use or business use as this plan is taken to pay back any loan taken by them so at a lower rate of interest, it attracts many people to come and take this loan due to which the name of the bank or financial institution gain reputation in the market.

In Singapore there are many banks that provide you with a personal loan and all the type of other loans, but this debt consolidation is a new term that has been introduced recently, and according to HSBC Singapore bank while they took a survey it indicated that around 4000 Singaporean people had reached the line of debt and when they dug in more deep they found out that the debt level of the Singapore people have hit 12 times higher than their income level and many people were opting for this type of loan in the market.

How do I know when to take a debt consolidation plan?

If you are deep in debt, then you can consider taking a debt consolidation loan from a bank or a financial institution, but not many people are eligible to take this type of loan from their market as they don’t have either a good credit score or they don’t have a good history of repaying back a loan taken by them.

There are many banks, credit bureau and financial institution that provide this type of loan but all of these banks and institutions have different term and conditions and also require a different type of proof from them such as bank statements, loan receipt, and also their bank balance.

Also, many of these banks and institution don’t give loan to those people who are deeper in debt rather than what their monthly income is because they think that this will be like a shortcut that anyone can use if they want to get out of any debt that they are currently in and think that they don’t have to work and abuse the power of debt consolidation loan.

Where can you take a debt consolidation loan in Singapore?

Here is the list of banks, financial institution:-

  • Citibank Singapore
  • Diners Club Singapore
  • Hl bank
  • HSBC bank Singapore
  • May bank Singapore
  • POSB bank
  • RHB bank Singapore
  • Standard chartered bank Singapore
  • United overseas bank

I hope you get the information you were looking for in this article.