Low Interest Rate Home Improvement Loans – Is taking out a loan always a bad thing? This is the difference that good financial management makes
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Low Interest Rate Home Improvement Loans
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Solved! What Are The 6 Different Types Of Home Improvement Loans?
Singaporeans are known to be very “approachable” when it comes to giving advice, but sometimes it can be very general and misleading. My parents are no different, as an example, one lesson my parents taught me is that debt is bad. Don’t take out a loan, and even if you do, pay off your loan as quickly as possible.
But here’s the thing – it really boils down to how you manage your finances, and good debt can help you manage your finances better. So, how do you differentiate between good debt and bad debt? Here we examine some key differences.
We’ve all heard horror stories about how debt destroys families and how people try to borrow money from unlicensed moneylenders because they feel they have no other choice.
There are horror stories of people with massive credit card debt of 24 times their monthly salary! How crazy does that sound? Fortunately, steps have been taken to limit the total borrowing allowance for unsecured credit to one year’s income with effect from June 2019.
Home Renovation Loan
Basically, bad debt refers to loans or money that is beyond what you can handle. On the other hand, good debt refers to loans that are within your financial means and that give you more.
Examples of good debt include borrowing for home improvements or upgrading your skills. Taking out a loan can help break down a very large purchase into manageable amounts.
So where do personal loans come in? Well, whether a personal loan is good debt or bad debt comes down to one simple question: Why do you need the money now?
This seems like the most obvious question in the world, but you’d be surprised how few people consider it before taking out a loan. Let’s get things straight here – it’s not the loan that’s bad, it’s the way it’s used that matters. Likewise, credit cards aren’t what some people portray as “evil,” it’s actually misuse of the product that leads to financial hardship.
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Of course, things don’t always have to be black and white. Here is an easy reference graphic to show what is good debt and what is bad debt:
Although debt can seem scary, if managed well, taking out a loan can be a viable option in many situations and can help you improve your credit score.
Taking out a personal loan won’t eliminate your debt, but it can significantly reduce the amount of interest you pay on your existing debt and help you manage your cash flow better, which is the point of it all. . Here’s a simple example of how to reverse high-interest credit card debt:
Imagine if you have a S$20,000 credit card debt to clear and you pay S$500 every month. At 24% interest per term, this would have taken you about 7 years and you would have paid over $20,000 in interest!
Is It Always A Bad Thing To Take A Loan? Here’s The Difference That Good Financial Management Makes
Also, a personal loan gives you a disciplined and structured way to repay the debt by splitting the payments evenly, so if you’re not that conscientious about repayments, “forced” repayments can help you manage things better. Debt and being more disciplined will help you manage your cash flow in the long run.
If you want to get a personal loan for the above reasons mentioned in this article (good ones, of course!), Standard Chartered Bank
* Standard Chartered Bank (Singapore) Limited Next Day Money terms and conditions apply. For full terms and conditions, refer
All Standard Chartered Bank Cashon Personal Loan applications are subject to loan approval process at SCBSL’s sole discretion. For more information on Standard Chartered CashOne Personal Loan, visit sc.com/sg/CashOne now.
Personal Loan Vs Home Equity Loan
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Sign up for our newsletter for financial tips, strategies and exclusive information that can be personalized to your preferences! Home renovations can be expensive, so finding a financial partner to finance the home of your dreams is critical. Fortunately, many banks offer a renovation loan with low interest rates and affordable monthly repayments.
To help you, below is the list of best renovation loans that you can find in the market:
Home Equity Loan Vs. Line Of Credit
First Bank offers a low annual interest rate of 3.99% per annum and loans of $20,000 and above. To qualify, you need an existing Citibank credit card.
If you plan to cancel your loan, a cancellation fee of 3% of your outstanding unbilled principal amount or S$100, whichever is higher.
Also, if the loan is not paid for 2 consecutive months, it will be terminated and you will pay only the outstanding amount.
Next is Standard Chartered Bank. Offers 4x your salary with a loan amount of S$1,000 (minimum) or a low annual interest rate of 3.48% up to S$250,000 (maximum).
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They also offer a S$50 annual fee waiver for the second year of your loan if you pay on or before your due date in the first year of your loan until it is paid off.
The third bank we have here offers a low interest rate of 3.4% per annum for those with an annual income of $30,000.
The minimum loan amount is S$1,000 and the maximum amount equal to 90/95% of your approved credit limit at the time of application.
Lastly is DBS. Here you can get loan at an interest rate of 3.88% per annum. You can borrow between S$10,000 (minimum) and S$30,000, or 6x monthly income (whichever is lower)
Low Interest And No Interest Home Renovation Loans
It also has a processing fee which is 1% of the approved loan amount. Also, you get 1% insurance.
If you’re considering a renovation loan but aren’t sure where to start, you can submit an inquiry form with us and we’ll get back to you with a free quote.
Yes, RenoLoan is a completely free platform that helps you compare and secure the best renovation loan rates. You can read our customer reviews here. With so many types of personal loans available, it can be a bit confusing. Here’s everything you need to know about personal loans to make better financial decisions.
Read the latest personal installment loan in Singapore and top money saving tips. Last updated on November 1, 2022.
How To Pay For Home Improvements
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