Banks and lending companies provide special loans, known as personal loans, to those who need help for several reasons. Some could be investments, keeping up with debt, wedding costs, etc.

Each type of loan is designed for a unique situation. Each lender will have a different set of offers and rates too. You’ll find the differences in their terms and conditions.

You can use such loans to get rid of some older debt and keep up with the necessary payments. Doing so will keep your credit score from dropping. If you keep up with your repayments on time, that will also improve your credit score over time.

The main use is to keep up with other loans that you’re starting to fall behind on. Taking such a loan gives you time to find a way to make more money and keep up with further repayments.

Some other reasons could be unexpected costs, such as home renovations, medical bills, uninsured expenditures, etc

The first thing to consider is whether such a loan is the right call for your situation. After that, look into the interest rates and other loan types that you could potentially use. If the personal loan rates are the best, you can move on.

The next thing to consider is whether or not you would be able to keep up with the payments for your new loan. Make sure you can afford the repayments on top of your other expenses. If you fail to do this, the late payment fees will put you further into debt as well as damaging your credit score.

For a start, you need to be between 21 years old and 65 years old. You will also need at least an annual income of $30,000. On top of these, you will also need an NRIC document and three months-worth of payslips. If you are a foreigner, you will also need to provide your employment permit/pass type

A variety of financial companies and lenders offer such loans, including banks, credit unions, etc. They each have different terms and interest rates. Credit unions are easier to work with as they require less screening than most banks. Moneylenders and pawnshops are easier still, but their exchange rates tend to be higher.

Lenders will look into things, such as your credit score, annual income, TDSR, etc. Many factors determine how much you can borrow.

The maximum amount varies depending on how much you earn each month. Typically, you can only borrow four months of salary at once. Other than that, some banks have a specific limit

On average, you’ll hear back in three days. The loan takes another week or so to turn up. A few banks offer instant loans that turn up the same day you approve. Check the bank before making your request.

• • A secured loan requires that you have something that the lender can hold as collateral. If you fail to pay off your loan, the lender simply takes the collateral and you balance out the difference.• Unsecured loans do not require collateral but their interest rates are higher. If you fail to keep up with an unsecured loan, the interest will build up until you have to declare bankruptcy.

Obviously, a secure loan is best for those with a low credit score. Unsecured loans are best for people who can be certain that they will keep up with monthly payments.

There are different minimum and maximum periods depending on the loan requirements of the bank or loaner you choose to work through. Sometimes it is measured in days. Other times, it can be weeks or months.

Typically, your repayment period will be between one and seven years. Some banks do offer even longer periods, however.

Obviously, you will need to pay an interest fee on your loan. Some lenders do allow you to pay back without interest for the first six months to a year, but you will still end up paying more than you originally borrowed. That is the cost required for an instant reward.