ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How do you choose the right loan?

Updated on August 13, 2015

The world that we live in today is full of opportunities. There are so many wonderful things that we would like to own and enjoy. Life isn’t about standing still, it is about moving on and wanting more. Now, with this comes the desire to provide the best for your family, travel across the planet, fulfill life-long dreams and discover more as you journey on.

Some individuals take the help of debt to fulfill their commitments and desires. But is being overburdened with debt the right way to live? Now, that is a debatable topic. An individual can carry debt, but he should be able to handle it wisely. Payments should be made on time, repayments done etc., etc., to efficiently wade through any debt pile. Having a debt is always not troublesome. Good money management and timely payments go a long way in helping you clear your debts easily.

Understand why you need a loan:

There are various financial institutions in Singapore that can give you a loan for whatever your requirement is. But don’t go for a loan just because it seems like the right thing to do. Think. Analyse. Compare. Avail. This should be your motto when you take a loan. Compare various loan products across institutions before you actually make the pick. Get the best deal possible. Banks in Singapore sanction two types of loans namely - Secured and Unsecured loans.

When you take a secured loan, you will be required to pledge some asset as security against that particular loan. Unsecured loans do not need any form of security, but they come with high interest rates. So first make a sound decision on why you want the loan.

Choose a loan that suits your requirement best:

If you are buying a new property, that’s great, go for a home loan that actually fits into your budget. You can also go for a renovation loan, refinance loan or a mortgage loan depending on your home requirements. Don’t overstretch yourself when you go for a car loan. Always choose a car model that is compatible with your wallet and is also your everyday companion. Personal loans can be the savior for those unforeseen circumstances or for you to just go on your dream holiday. Take an education loan to finance higher studies, but do it with the right loan package and with some amount of repayment planning in place. You can go for fixed term loans or revolving loans, but the interest rates that you would be paying would vary significantly.

There are a few aspects that you need to consider when you go for a particular type of loan. For example if you are going for a home loan, analyse how much you should borrow and what should be the tenure. Since home loans tend to go on for longer periods of time, make sure you don’t pay more than you actually intended to. Try pre-closing or paying partly whenever possible. Do not borrow more than you can actually repay, just because you qualify.

Always be aware of the down payments and the monthly installments that you have to give towards any loan. Another key aspect that you need to consider is whether the interest rates that the bank is offering towards a particular type of loan is affordable as this boils down towards that total cost of the loan. Make sure you don’t burden yourself with debt and ensure that you are fully covered financially before you enter into any debt cycle.

EMI Calculators

An easy and helpful tool to help you understand your debt repayment better is an EMI calculator, which is available on the internet. This tool projects a forecast of you monthly amortization schedule and helps you plan your finances better. An EMI calculator can be used for any type of loan and requires only a few inputs. Prospective borrowers can get an estimate of how much interest and principal they would be paying for the selected loan tenure and the availed loan amount in just a few minutes.


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)