Apply For An Electrical Appliances Loan At Low Interest Rates In Singapore (2020 Update)
April 15, 2020
Whether you are moving out of your parents’ home and into your own house for the first time, or you simply need to replace your old electronics, the truth is that you will need a lot of money to purchase everything you need. Electronic products are costly in Singapore and we are talking about hundreds and thousands of dollars. Unless you have the money up front, you will need help to finance your purchases.
The good thing is that in Singapore, that is easy. With traditional lenders and a myriad of private licensed moneylenders falling over themselves to lend you the money you need, you are spoilt for choice.
Household appliances and other electronics are considered a necessity today. You need a refrigerator, washing machine and dryer, dishwasher, vacuum cleaner, air conditioner and other items to live comfortably. With an electronics loan, you can purchase the urgent items first, and then work your way to purchasing the rest. Alternatively, depending on how good your credit is, and the amount of money you are earning every month, you can take out a larger amount of money and purchase all the electronics that you need in one fell swoop.
Electronic loans are unsecured. Unsecured loans do not require collateral from the borrowers. It is important to note that if you take an unsecured loan, you will be charged an interest rate that is higher because the risk is greater for the lender. Should you default on an unsecured loan, the electronics will not be repossessed but your credit score will take a hit, thus affecting future borrowing. However, unsecured loans have been gaining popularity as borrowers do not require to involve their assets.
How Much Do Electrical Appliances Actually Cost?
Getting a home and decorating it to suit your needs is not cheap in Singapore. Other that the cost of the apartment, homeowners usually have to spend on home renovation, electronics and furniture. All these easily adds up to at least $50,000.
Prior to taking out a loan to purchase your electronics, you need to shop around and find out how much they cost. You must also decide whether you want the low-end, mid-range, or high-end products since the costs are quite different for this. Here are some examples:
|ITEM||LOW END||MID RANGE||HIGH END|
|Washing Machine / Dryer||$400||$800||$3,600|
As you can see, electronics are not cheap and if you do not have a good financial plan to purchase them, then you will need to get a loan to cover the cost and then make the payments slowly over time.
Where To Get An Electrical Appliances Loan
An electronics loan is easily accessible from licensed moneylenders in Singapore. It is important that you first do your homework by carrying out your research on lenders. If you are looking for fast cash, then you will be better off with a licensed moneylender. This is because they have less stringent eligibility requirements and the loan process is very fast with them. You can get your money the same day or within 24 hours. Traditional banks often take weeks or even a month before you can know whether the loan has been approved. If you need a refrigerator quickly (surely you don’t want all of your food to spoil), you cannot wait an entire month for a loan approval.
Other advantages of borrowing from a licensed moneylender include the following:
1. 100% Confidentiality.
Licensed moneylenders are governed by the same confidentiality laws that govern traditional lenders. This means that your personal details will never ever be disclosed to third parties. Everything about your application and personal information will be kept confidential.
2. Saves time.
Since most licensed moneylenders are happy to start off the application process online, you don’t have to worry about making several trips down to the lender. Simply fill in your loan application over the internet, and then submit your supporting documents in person. Once your loan has been approved, which happens in a matter of hours, the amount is disbursed into your bank account.
3. Licensed moneylenders tend to be very flexible.
They offer a loan tenure that is convenient to their clients and will be happy to work out friendly terms with you.
4. Competitive interest rates.
It is important to note that the better your credit score, the better the interest rates you get. If you have very good credit, you can negotiate with the lender for prime lending rates.
5. Bad credit lending.
Whereas most traditional lenders will not lend to someone with poor credit, licensed moneylenders are willing to take the risk. Provided that you can show that you are now earning and income, they can work with you to give you the money you need to purchase the electronics that you need.
It’s Easy To Qualify For An Electrical Appliances Loan
If your washer and dryer suddenly go out and you need to buy them quickly, you will need to take out an electronics loan if you don’t have the money at hand. This means that you will need to meet the eligibility requirements of the lender. Usually, they will need you to meet the following basic requirements:
- You must be over the age of 21 and not over the age of 65.
- You must be a Singaporean Citizen or permanent resident.
You will also be required to show proof of income, proof of employment, and provide proof of address. If you are in business for yourself, then you will need to show your bank statements and recent tax returns.
It goes without saying that your credit score will play a big role in this scenario. The interest rates you are charged will heavily depend on your credit score. Your TDSR is also important. If you already have a heavy debt burden that is almost at the 60% mark instituted by the government of Singapore, then licensed moneylenders are obligated not to give you more debt than you can handle. It is therefore, very important to always keep your debt burden as low as possible.
What Should You Consider When Taking An Electrical Appliances Loan?
An electronics loan gives you the ability to purchase necessary electronics without having to wait a long time to save for them. If your refrigerator quits suddenly, or your oven, or even your washer and dryer, you can purchase the items quickly, and then pay them off slowly over time. Here are some things to consider when taking out a loan to purchase electronics:
The loan amount.
Always make sure that the lender can give you the amount of money you need to purchase the item. Of course, this means that you will have carried out due diligence prior to asking for a loan so that you can ask for the right amount of money.
Be sure to shop around and get the best interest rates in market. However, do not consider this in isolation. Some lenders are known to lure people with low interest rates, and then hit them hard with exorbitant fees and charges.
This is important because you must strike a balance. A long tenure will mean smaller monthly repayments, but in the long run, you will pay more in interest. A short tenure, on the other hand, means that you will pay a heftier monthly repayment, and less interest overall. The important thing is to strike a balance so that you pay a comfortable amount every month, within the shortest period possible.
If you require any financial help in getting electrical appliances for your home, feel free to speak with our consultants at Credit Thirty3. Get in touch with us today!