What Are Monthly Installment Loans In Singapore?

Written by 1AP Credit on July 13, 2022

A monthly installment loan is also known as a monthly loan. For such loans, borrowers are able to borrow larger amounts and can be given a longer loan tenure. An installment loan is a type of loan that you borrow and pay back in regular installments. It’s a great financial option, especially when difficult situations requiring emergency cash arise. Even though you need the cash, you need to make sure you borrow from the right bank or licensed moneylender.

A monthly loan helps you expand your budget. You don’t need to drain all of your savings in order to repay the loan or for your financial emergencies. Monthly installment loans are here to help!

When it comes to monthly installment loans, there are several things you need to think about. One is the type of monthly installment loan that you need, whether secured or unsecured. Another thing you will have to consider is the costs involved in each loan. These can differ depending on the lender, credit score, and income. Finally, you need to think about how much money you want to borrow when choosing a monthly installment loan.

In this article, we look at what monthly installments are and why Ideal should be your preferred lender.

 

What are monthly installment loans?

Monthly loans are commercial and personal loans given to borrowers, and they require regular payments. The regular payments the borrower makes include a principal and interest portion. With most installment loans, the regular payments are fixed, meaning the borrower pays a certain amount over a period of time.

The best examples of installment loans include mortgages, such as your HDB loan.

 

How do installment loans work?

With monthly loans, the money is given to the borrower in a lump sum. The borrower pays back the loan in regular installments over a period of time. They are either secured with collateral like a car or house, or unsecured.

For instance, personal loans are installment loans with a loan tenure beginning at three months. Using your credit information, the lender will decide how much you qualify for, the rate, and the loan tenure. The lender will send you a quotation of how much loan you can access, with interest and a repayment period.

 

Benefits of installment loans

There are reasons why working adults in Singapore choose monthly installment loans. The clear benefits have helped them stabilize their finances and put their life back on track.

Below are reasons why you should opt for installment loans.

1. Fixed monthly payments make it easier to budget.

Installment loans have a payment schedule that shows the expected payment date and the amount. This makes it easy to budget your money.

2. The cost of large expenses is spread over a period of time.

With monthly installment loans, it is possible to purchase large items and pay for them over time. It makes it easy to manage cash flow without constraints.

3. Credit score improvement

Payment of installments improves the credit history of the borrower.

Consistent payment of the installments is an excellent way to improve the credit score of the borrower. It shows the borrower is capable of managing their finances and that improves their credit score.

4. Debt payoff is predetermined

The date the borrower is expected to pay the installment is predetermined. That gives the borrower ample time to organize their finances.

 

Is a monthly installment loan the same as a payday loan?

Monthly installments and payday loans are both types of installment loans. Payday loans are installment loans that don’t require credit checks, have a higher interest rate, and have a much shorter loan tenure. On the other hand, monthly installment loans include mortgages and auto loans, which have a longer tenure and lower interest rates.

A summary of the difference between payday loans and monthly installment loans

Installment loansPayday loans

 

Due dateThey are due on a monthly basis until the loan is fully paidMostly due on payday
Interest rateLower interest as compared to pay-day loansExtremely high interest especially in case of default.
Credit checkLegitimate installment loans require a credit checkDoes not require a credit check

 

Monthly installment loans from 1AP Capital

At 1AP Capital, we understand the unexpected can happen at any time. We are the financial partner you need in the event of an emergency. Our monthly installment loans will help you deal with any financial crisis. Here are the main features of our monthly installment loans.

  • Flexible monthly repayment
  • Loan tenure to suit your needs
  • Favorable interest
  • Customizable long-term or short-term loans
  • 3 minutes from Tanjong Pagar MRT
  • Professional licensed moneylender with years of experience
  • Understanding and friendly

 

Why should you choose a monthly installment loan from 1AP Capital?

5 Minutes quick apply online

It only takes 5 minutes for you to submit your loan application with us! You can apply through the online portal, making it easy to access the loans. Our easy and efficient process makes it access the loans.

On-the-spot disbursement 

Once your loan is approved, you can instantly take your cash. Our shop is always ready to serve you.

Flexibility to pay over a long period of time

Our loans are designed with the borrower in mind. We offer longer repayment periods, giving you the much-needed time to pay for the loan.

Low-interest rates

We offer the best interest rates in town. Our rates are lower, making the loans affordable. Interested? Apply for a monthly loan.

 

Our installment application process

1. Call or apply online

You can apply for the loan by applying online. Fill in our online application form or call to book an appointment.

2. Visit our shop

To make it convenient for our borrowers, we have opened our branch at International Plaza. We are a 3 minute walk from Tanjong Pagar mrt! Visit us and discuss how we can meet your needs.

3. Agree on terms and finalize the loan application

1AP Capital is a reliable licensed moneylender and we will explain each and every detail of the loan contract to you. Read our terms, accept them and sign the contract.

4. Receive your loan.

Once your loan contract is signed, you can receive your cash immediately.

 

FAQs on monthly installment loans

Am I still eligible for a monthly installment loan if I have bad credit?

Yes, you are eligible for a monthly installment loan. 1AP Capital has the experience and the capital to help customers with bad credit. We work with those with poor credit ratings to design loans to suit their needs.

We may encourage those with poor credit ratings to consider enlisting a guarantor or taking out a secured loan. That will help those with poor credit ratings build their credit rating and also increase the loanable amount.

How much can I borrow for a monthly installment loan?

You must ensure you are eligible before you can borrow. Here are the eligibility requirements.

  • Must be at least 18 years old
  • Proof of income
  • Proof of residence

To make things easier, 1AP Capital’s modern loan system allows you to apply with your Singpass details.

If you are eligible for the loan, the amount you can borrow will depend on your income. Below are the limits set for unsecured loans.

Annual IncomeSingapore citizen and permanent residentForeigners residing in Singapore
Less than S$ 10,00S$3,000S$ 500
S$10,000 to S$ 20,000S$3,000S$ 3000
S$20,0006 times the monthly income6 times the monthly income

 

Ready to get your monthly installment loan?

Installment loans are a great way to finance big purchases or consolidate debt.

By making fixed regular payments, you can budget better and improve your credit scores.

At 1AP Capital, we believe that there is always a solution. There are many different types of installments and we hope this article gives you the guidance you need. To apply for a monthly loan online, click here.

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