Factors to Look Before Applying For a Personal Loan

When looking for a personal loan with a low interest rate, keep in mind a few important factors before sending your application. For example, planning to take a major loan such as home loan, auto loan or education loan within a period of 2 to 3 months of taking a personal loan is not recommended. DSR or debt servicing ratio is one of the factors that needs to be looked at before applying for an auto loan. DSR is the calculated percentage of your income that can be used to pay monthly installments for loans, such as auto loan or personal loans.

Now having a DSR percentage of 50 can severely hamper your capacity to repay the loan. Ideally your DSR percentage should never be more than 50 percentage. So if you apply for more personal loans, then you might have to reduce the amount of loan taken for your major goals such house and a car. Nearly all banks offer a DSR percentage of 40 for home loans and 30 for auto loans.

However, if there is no way out other than taking a personal loan before taking a major loan, may be to pay the down payment for the major loan, then the timing is absolutely critical. Seek help from a loan specialist, who can advice you on the correct move.

This rule does not apply to HDB loans, which has a capping of 35 percentage over MSR or Mortgage Servicing Ratio. So basically having other loans does not affect HDB loans, repayment of which should be 35 percentage or below your total salary. So taking a personal loan before a HDB loan doesn't affect the HDB loan in any way.

Beside the DSR there are other important factor that needs to be considered before taking a personal loan

You need to be specific when applying for a personal loan. Taking a personal loan to do a house renovation or to fund college education or a vacation is not good idea, as there are tailor made loan packages for these.

Compared to personal loans these loan packages have a much lower interest rate. Education loans for example are available for as low as 2 percent which is much lower when compared to a 6 to 8 percent interest rate of a personal loan.

Profitability of a bank is based on charging interests. A bank looking for new customers is much likely to offer lower interest rates and try and attract new clients with flexible repayment plans. Try and look for banks that are aggressively searching for new clients and get business they might just offer you lower rates and added benefits. When two or more banks offer the same, choose the bank that has lower penalty rates. Following these factor makes sure that you have personal loan that has a lower interest rate and comparatively lower penalty rate.

Article refer: http://personal-loans.sg/how-to-find-the-best-low-interest-personal-loan/

Where Can I Get Personal Loan with Bad Credit

10/02/2013 -- There are consumers who are always asking themselves, “Where can I get personal loan with bad credit?’’ but this should not be an issue anymore. Generally, nowpersonalloans.com has been offering poor credit loans since its launch three years ago and there are now more attractive offers. These will be combining ease of access, affordability and ease of clearing the resulting debts.
To make it easy for consumers to be accessing the loans, the company has found new loan providers who have been added to the database. They will be providing very efficient services to ensure that all inquiries by low credit score loan applicants are handled within just a short time. The company will also be using a more customized platform that will be providing more accurate matches to ensure that all consumers get the best offers.

When sharing the good news, the spokesperson for nowpersonalloans.com said that no person should now be wasting time wondering, “Where can I get personal loan with bad credit?” He went ahead to mention that, “Instead, people should be visiting our site immediately they have a situation to handle and we will be assisting them to find trustworthy lenders instantly. This will be helping them to avoid hassles while still saving on time.”

In order to make the personal loans more affordable, the company had to look for and implement some measures that would bring down the interest rates. This started by approaching the loan providers who were already working with the company and they agreed to adjust the same. There are also new lenders who were introduced into the database and they will also be advancing very attractive rates.

The final move involved making it easy for people who get the poor credit loans to handle their debts and this is where the company managed to come up with very convenient loan payment plans. Most loan providers will now be allowing consumers to do so in installments where they will be making their own choices depending on their incomes. This new offer will definitely put an end to the question, “Where can I get personal loan with bad credit?”

http://www.sbwire.com/press-releases/where-can-i-get-personal-loan-with-bad-credit-loans-company-now-introduces-the-best-solutions-344206.htm

118 118 Joins The Personal Loans Market

The directory enquiries service 118 118 has launched a finance arm offering personal loans to consumers rejected by mainstream lenders.

The company, known for its adverts featuring lanky, moustachioed runners in 1970s-style singlets, is offering loans of between £1,000 and £5,000 with annual interest rates ranging from 36%-80%. Like payday loans, these are aimed at borrowers who have poor credit records and are unable to borrow elsewhere.

However, the company claims it will not be in direct competition with payday lenders because it will offer loans at lower rates over a longer period of time.

News resource:  http://www.theguardian.com/money/2013/oct/02/118-118-personal-loans-market