What are the different types of unsecured loans available in the market?
An unsecured loan is any type of loan which is not secured with any type of collateral and only issued upon someone’s creditworthiness. Credit cards, student loans, personal loans, etc are all unsecured loans.
The types of unsecured loan
There are three categories in which unsecured loans can be divided.
- Revolving loan- revolving loan is a type of loan in which, once you repay the amount that you spend you can use the sanctioned amount again like credit cards and personal lines of credit.
- Term loan- term loan is a loan in which, the borrower must repay the total amount of debt in equal installments within a specified time. In general term loans are often affiliated with secured loans but there are also unsecured term loans available like Personal Loan.
- Consolidation loan- consolidation loan is a type of loan which you take to pay off your other debts. For example, if you have outstanding dues on credit cards or have multiple unpaid loans, you can take a consolidation loan to pay all other debts and just focus on one.
Is it a good idea to apply for a personal loan with a co-applicant?
Well, in case, if you want to apply for a personal loan with a co-applicant like your family member (spouse, parents, brother or sister) then maybe it is a good idea. But, it depends upon credit ratings of both of you, if you both had a high credit rating then you can get a higher amount of loan but if one of you had a poor credit rating then chances are your application might get rejected. To know better about terms and processes on how joint applications work, search for Moneylender Singapore.
Loan approval process after you submit your application
The process of approval varies from lender to lender as they had different terms, conditions, rules, and regulations. An officer will decide whether you are eligible for a loan or not according to company guidelines, this process can take time between 48 hours to two weeks. After you submitted all the documents and the officer approves your loan then the bank will disburse the sanctioned loan amount within seven working days. You may receive the sanctioned loan amount by an account payee cheque/draft or the amount will electronically be transferred to your savings account.