Along with the annual inflation rate increase is the incapacity of people to their daily needs and wants. This helplessness is in conjunction to the fact that their financial resources are insufficient. This is why alternatives like the application for personal loans are being presented. But, before you indulge yourself and before you apply for a personal loan, it's imperative to recognise its basics which will be mentioned in the succeeding paragraphs.
A loan is known as borrowed money. Why? Because you will be borrowing a specific amount of money from a lender which can either be a bank, a business, or an individual. Throughout the span of time that the money stays with you, you'll be charged with an interest rate.
In order to understand the meaning of an interest, this is an example: When you loaned an amount of S$ 1,000 and the monthly interest set by the lender is 3%, and you plan on holding on to the cash for one month, then your total due once the deadline arrives is S$ 1,030. However, there are a few instances wherein there'll be additional charges based on the agreement set by the lender.
Next important concept is the due date. This is the precise date wherein you are expected to repay the full or a portion of the borrowed cash based on the agreement on the contract. There are instances in which the deadline falls on a weekend or a holiday; if the lender is a bank, chances are the deadline is going to be moved to the closest weekday. For instance, the date fell on a Saturday, the nearest weekday from that day is Friday.
Finally, before borrowing money from any company make sure that these criteria are met. You are fit to borrow money, which means that you have the potential of repaying what you borrowed. And that the institution where you're going to borrow the cash has an excellent reputation.
A loan is known as borrowed money. Why? Because you will be borrowing a specific amount of money from a lender which can either be a bank, a business, or an individual. Throughout the span of time that the money stays with you, you'll be charged with an interest rate.
In order to understand the meaning of an interest, this is an example: When you loaned an amount of S$ 1,000 and the monthly interest set by the lender is 3%, and you plan on holding on to the cash for one month, then your total due once the deadline arrives is S$ 1,030. However, there are a few instances wherein there'll be additional charges based on the agreement set by the lender.
Next important concept is the due date. This is the precise date wherein you are expected to repay the full or a portion of the borrowed cash based on the agreement on the contract. There are instances in which the deadline falls on a weekend or a holiday; if the lender is a bank, chances are the deadline is going to be moved to the closest weekday. For instance, the date fell on a Saturday, the nearest weekday from that day is Friday.
Finally, before borrowing money from any company make sure that these criteria are met. You are fit to borrow money, which means that you have the potential of repaying what you borrowed. And that the institution where you're going to borrow the cash has an excellent reputation.
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