Shopping around for the best loan deals
With global interest rates at historic low, now may be the time to consider a loan.
If you have a credit card balance that just won’t go away, need to fund a big purchase, or are looking for the best value in paying down a debt, it pays to shop around for a loan that you can afford.
Despite low rates, the effects of the so-called credit crunch are still being felt by banks, so some remain reluctant to lend out of fear of building up more bad debt. But those that remain are trying hard to attract Singaporean custom, especially from people who have a good credit history.
As with the major credit card companies, banks offering loans know that it’s a buyer’s market, meaning they have to offer more to new customers. At the moment (August 2013), we’re seeing excellent interest rates being offered on loans of between 5-7 per cent, comparable with some of the major economies around the world.
Some Singapore-based loans (such as Maybank’s Myline Loan) don’t even come with a minimum income requirement, yet still offer competitive rates; while others require a proof of income but give worthwhile membership benefits in return.
And that’s where the loan market in Singapore differs from that in other developed economies – the member benefits. Our banks operate in a stable financial market with a limited pool of customers, so they have to fight for every loan application. This, naturally, suits the buyer who is faced with an overwhelming choice when it comes to the add-ons.
Take the ANZ MoneyLine Term Loan, as featured on our website. Not only is the rate competitive with low monthly repayments, but the deal comes with a Samsung 210NX camera, worth $1,100. This offer comes in direct competition with HSBC’s Personal Loan, which comes with a range of gifts, up to a Toshiba 40″ HD LED TV. UOB ChashPlus and Maybank Creditable both come with tablet computers.
The choice is huge – from TVs to furniture to holidays – and the temptation is to go for the loan that comes with the best gift. But be careful, as this might not be in your best interests. Sit down and cost out which one’s going to be the best for your wallet, and then apply. Of course, if there’s a tie, THEN choose the best freebie!
Compare loans today at Enjoy Compare