Top 10 Reasons People Take Personal Loans5 min read

Image representing a couple and how personal loan can help make their wedding a day to remember

Readers, wouldn’t you agree that life is unpredictable? It’s so unpredictable that one day you’re on top of the world, living comfortably and the next, you’re weighing your options to get out of a temporary monetary hiccup. In fact, many folks face financial setbacks due to the economic crisis that was triggered by the Covid-19 pandemic.

Fortunately, the lending industry in Singapore acts as a saving grace for many Singaporeans and permanent residents for a multitude of reasons. But what could those reasons be, you ask? Well, get comfortable as we share with you the 10 most common reasons why people apply for personal loans.

#1 Going Back To School (Education Loan)

Going back to school is always an advantageous decision as it will surely benefit your career growth in the long-run, especially if your career field gives you the option to specialise in a certain area. But, if you’re short on savings, you might be inclined to put this dream on hold. Fret not! A personal loan, from banks, private money lenders or financial institutions is the practical solution to help cover your tuition fees. In fact, did you know that you can get a personal loan with no income proof? As a student in need of extra funds, this lets you put aside your worries and focus on your studies instead. So, if you’ve been putting your dreams of furthering your education on hold, here’s your chance with a study loan.

#2 Walking Down The Aisle (Wedding Loan)

Weddings don’t have to be extravagant, but it can certainly be costly! Did you know that the average wedding cost in Singapore is between SGD30,000 and SGD50,000? Just ask any married couples within your circle of families and friends. Luckily, wedding loans have made it possible for both Singaporeans and permanent residents to wed the love of their life in a ceremony or banquet of their dreams.

#3 Improving Your Humble Abode (Renovation Loan)

It’s always exciting to come home to a home that is infused with your personality and lifestyle — furnished and decorated just the way you like it. That is, before you notice the cost you’ll incur to creating your dream home. Don’t worry; banks and licensed lenders have made it possible for you to design your dream via renovation loans… so long as you’re 100% confident in the design of your upgraded and improved home.

#4 Seeking Medical Attention (Medial / Surgery Loan)

Medical treatment is expensive and let’s not get started on the cost of surgeries. However, some advanced or specialised medical treatments and surgical procedures are necessary, especially if you’re diagnosed with long-term illnesses or sustained severe injuries. But, before you go wide-eyed and sigh over the estimated cost, take comfort in the fact that medical loans have made it possible for Singaporeans and permanent residents to seek medical treatment in Singapore.

#5 Investing In Properties (Investment Loan)

Have you been eyeing a property that your gut-feeling knows has immense money-banking potential, but lack the funds to move forward with the potential? Well, don’t lose hope just yet! An investment loan can be used for any type of real estate investing purposes, whether it’s commercial real estate or residential. So, now that you know a personal loan can help you secure the property, all that’s left to do is to take a sip of coffee and pen out your investing strategy.

#6 Selling or Buying A House (Property Bridging Loan)

Speaking of properties, did you know that a personal loan in Singapore can totally help you ‘bridge the gap’ if you find yourself short in cash to buy a new house and sell your old home? In fact, the loan is designed specifically to offer homeowners a short-term loan to help them secure their second property while they secure a buyer for their existing home, even if you’ve already have a mortgage. Basically, this bridging loan allows homeowners to traverse the gap between buying and selling legally.

#7 Keeping Your Business Afloat (Freelance Loan)

If you’re a business owner, then you’re probably aware how challenging it can be to keep your business running, especially while the pandemic is still at large. For some business owners, they would relish on the opportunity to pay the payments of their suppliers and the payroll of their employees rather than tightening the belt around their waist. How? Why, through personal loan, of course! Whether you take out a loan with banks, licensed lenders or financial institutions, personal loans have made it possible for business owners to keep their doors open. In this case, it’s through the power of freelancer loans.

#8 Covering The Costs of Your Vehicles (Private Hirer Loan)

Any Grab, Gojek or private drivers amongst us? We totally understand that the cost of maintaining your vehicles can be expensive, especially if you’re working as a private driver or running a hire driver business. Thankfully, private hirer loans like a Grab loan exist to offer you some relief should you find yourself scratching your head to fork out the necessary funds to maintain your vehicles. With a personal loan, you’ll never have to worry about your vehicles being late for maintenance.

#9 Managing Your Debt In A Breeze (Debt Consolidation Loan)

Let’s be honest, managing multitude debts with different payment dates can be a hassle. A practical solution to your problem is applying for a debt consolidation loan! Thanks to the personal loan, all your debts will be streamlined, which makes it that much easier for you to keep track of your debts as well as making payments. In doing so, you will never have to worry about late payments, forgetting any debts, or not being able to repay your loan on time.

#10 Streamline Your Credit Card Debts (Credit Card Consolidation Loan)

Like a debt consolidation loan, a credit card consolidation loan is used to pay off your credit card balances along with its high interests. This means that instead of making multiple credit card payments every month, a personal loan will help you make a single payment. Now, wouldn’t that make life much simpler?

Thanks to personal loans via banks, licensed moneylenders and financial institutions, personal loans have undoubtedly helped many individuals and businesses. So, if you’re looking for a little extra cash (for the right purposes!), then don’t write off personal loans.



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