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How To Use A Personal Loan Calculator In Singapore?

When applying for a loan in Singapore, using a personal loan calculator is highly advised. But why should you use one?

Is it essential to use a loan calculator beforehand?

Get your answers with facts. This article will guide you on how to apply for the best personal loan with the help of this handy online tool.

Using a personal loan calculator helps you understand how much you’ll need to repay each month, including interest and any additional fees. In addition, differentiating various loans available and finding the best one that suits you best is expedited.

Read on to learn how to use a personal loan calculator and decide rationally for your financial future.

Table of Contents

Personal Loan in Singapore

A personal loan is a lump sum from a bank or legal lender based on terms agreed upon by both parties. This loan is unsecured, which means you don’t need to provide any collateral. However, you must agree to repay the personal loan with interest by a specific date.

personal-loans

In Singapore, personal loans are usually repaid on a monthly schedule. This means you pay a fixed monthly amount until the loan is fully paid off. The amount you pay each month depends on three main factors: the amount borrowed, the interest rate, and the repayment period.

You can apply for personal loans in Singapore from banks and licensed moneylenders. It is essential to only borrow from registered money lenders. In addition, legit lenders allow you to estimate your repayments through their personal loan calculator.

Borrowing from unlicensed lenders can lead to outrageous interest rates. Often, they lack a loan interest calculator, so you go in mindlessly for your repayment. Also, if you miss a payment, harassment and threats are their next move.

Getting a personal loan from reputable moneylenders is always safe and best. Their loan products and services are versatile and secure. 

Why Apply for a Personal Loan in Singapore?

Sometimes, Singapore residents have no choice but to approach a loan provider for unexpected financial dilemmas. Talk to the nearest licensed money lender if you face the following. 

Medical Emergency

Health is unpredictable. One moment, you are alive and kicking; the next moment, you’re just about to go. When this happens, unexpected medical expenses arise. Without an emergency fund or medical insurance, your savings will go down the drain. 

If you experience such urgent money need, a personal loan can be your go-to financial aid. Your quick cash can cover hospital bills, treatments, or medication. 

Home Improvement

Renovation loans in Singapore are your best bet for upgrading your home before selling it. However, instant online cash is only suitable for refurbishment expenses. Buying a brand-new refrigerator with loan cash is unacceptable. 

If you want to renovate your home or make crucial repairs, a personal loan can provide the necessary funds to improve your living space.

credit card debts

Paying Credit Card Debts

Unconscious spending through card swiping or card tapping digs a deep debt well. It can happen whenever you see a big red sale or hot promotion. Or you have many credit cards that you’re unable to monitor your expenses. 

Low-interest personal loans by legal money lenders help integrate all your credit card dues into a single monthly payment. If you get one, you can lower the interest rate of your various card debts. Therefore, managing your finances is easier and more convenient.

Investment

An investment is not just about buying stocks or crypto products. It can be investing in education, a business, or high-end products. However, grabbing golden opportunities always requires hard-earned cash. It is a take-it-or-leave-it deal that you wouldn’t want to miss. 

A personal loan can provide the capital you need to pursue these investments. You can spend the quick loan cash wherever you see the possible high revenue. But always remember to put only some of your eggs in a basket. 

Unforeseen Life Situations

Life is always unpredictable. No matter how hard you plan your future, you will still face unexpected situations. You might lose a job, need urgent travel, or lose a loved one. When this happens, it affects your entire being, including your finances. Every day, you’ll wonder how to cope with such a problem. 

Fortunately, a personal loan in Singapore can help you navigate these challenging times. It provides the necessary financial support and guidance. In addition, trusted moneylenders prevent you from creating another dilemma with your finances. 

These are just some reasons people in Singapore apply for personal loans. Although vital to everyday life, you must spend your cash loan wisely. Most importantly, ensure you can manage the repayments using a personal loan calculator. 

What is a Personal Loan Calculator? 

A personal loan calculator is different from your ordinary calculator. It is an online tool that helps you determine the cost of a personal loan. It looks at essential factors, such as the loan amount, interest rate, and term. The result shows an estimate of your monthly payments and the total cost of the loan. 

personal loan calculator singapore

A personal loan calculator can determine the amount you must repay each month. Also, it indicates the overall cost of your loan. That’s why it is relevant in your budget planning. With a loan interest calculator, you wouldn’t miss a thing. 

But take note of these special reminders. A personal loan calculator only provides an estimate. It is still not the exact value of your loan application. Specific changes may apply depending on your chosen lender, loan, and the parameters provided. That’s why inputting the correct data and crosschecking with your preferred money lender is vital. 

Why Use a Personal Loan Calculator Singapore?

Utilising a personal loan calculator is advantageous for many reasons. 

Assess Eligibility

A personal loan calculator can verify whether you’re eligible for a loan in Singapore. You’ll need to enter information such as your annual income, expenses, and credit ratings to do this.

With these details, the loan calculator can suggest the best packages suitable for your criteria and financial situation. It saves you time by filtering out options that are too expensive. Also, it directs you to a loan offering that matches you.

Detailed Comparison of Loan Offerings

Another perk of a personal loan calculator Singapore is that shopping around is more convenient. By entering the essential data for each loan offer you’re considering, you can easily differentiate one from the other. With the loan amount, interest rate, and loan term, the loan calculator estimates the total repayment amount. Most importantly, it includes the dreading interest.

A personal loan calculator is your financial assistant for getting the actual cost of each loan offer. Based on the result analysis, you can compare the fees immediately. Also, you can choose the best personal loan that fits your needs and budget. This way, you make sure you’re getting the best deal possible.

personal loan calculator for realistic budget planning

Realistic Budget Planning

Using a personal loan calculator in Singapore creates a practical budget plan. You can approximate your monthly payments by entering vital data into the loan calculator. The estimation allows you to gauge whether the loan is affordable and fits well within your budget.

Knowing your monthly payment amount in advance helps you plan your finances wisely. It ensures you can manage your expenses by staying within your budget. Also, it can save you from taking on excessive debt. This way, you can make informed decisions about borrowing money and maintain financial stability.

Ideal Loan Interest Calculator

Personal loan and interest calculators are accessible tools for finding the best loan options that suit your finances. In Singapore, a personal loan calculator lets you determine the ideal interest rate for your required loan amount. You can enter various interest rates and loan terms to adjust the parameters. Then, analyse how it affects your monthly repayments and total repayment amount.

Always maximise the purpose of a personal loan calculator Singapore. Being knowledgeable helps decide for the best. This way, you can weigh which is better: a lower interest rate with a more extended repayment period or a higher interest rate with a shorter repayment period. By comparing these options, you can find the best personal loan that fits your financial situation and goals.

Compute Term Loan and Interest Calculator 

You can use a personal loan and interest calculator to determine your equated monthly instalments (EMI) and the loan tenure in years. It helps you match your loan payments with your income level. Adjusting the loan amount, interest rate, and tenure allows you to find an EMI that fits comfortably within your monthly budget. 

Instead of memorising the numbers, percentages, and formulas, a personal loan calculator will work for you. It simplifies all the calculations with just your fingertips. Therefore, you can pick a loan structure that aligns well with your financial situation. Most importantly, it ensures you can easily manage your repayments.

Essential Factors Used on a Personal Loan Calculator

Before using a personal loan calculator, you must understand the basic terms. So, you can quickly analyse the results after you click “Calculate.”

factors used in personal loan calculator

Principal Loan Amount. It is the original loan amount you plan to borrow. Your monthly payments and interest will mostly go toward repaying this amount. Higher loan amounts mean you’ll have higher monthly payments and pay more in total interest.

Loan Tenure is the period you must repay the personal loan. It is usually between one and seven years long. Longer terms mean lower monthly payments but an increase in the total interest you’ll pay.

The Personal Loan Interest Rate is the percentage charged on the principal amount. It is the cost of borrowing money from a legitimate moneylender. It can be fixed (stays the same for the whole loan) or variable (can change over time). Lower interest rates reduce monthly payments and the overall cost of the loan.

The Annual Percentage Rate (APR) is the interest rate and any extra fees or costs related to the loan. It gives a better idea of the exact cost of the loan and interest calculator. 

Some personal loan calculators let you add Fees and Charges, including the loan product. Adding this to your computation gives you a more accurate picture of the loan cost.

Loan calculators have Payment Frequency options. You can make payments monthly, bi-monthly, or weekly. It can change your calculations and total interest paid.

The Amortization Schedule in a personal loan calculator breaks down each payment. It reveals how much goes towards interest and principal over time, helping you see how your loan is paid off bit by bit.

Understanding these terms helps you utilise and scrutinise the results of a personal loan interest calculator. 

How To Calculate Personal Loan Interest?

Learning about interest rate computation can help you manage your repayments and save funds. In Singapore, a flat rate is commonly used for interest on car or personal loans. The interest rate stays the same throughout the loan term.

fixed-interest-rate

The basic loan interest formula includes your principal loan amount, interest rate, and tenure. You can use a personal loan calculator to see how much you’ll pay in interest. You can use this formula as your loan interest calculator. 

Monthly Interest Amount = (Interest Rate / Number of Payments) x Loan Principal 

Banks and licensed moneylenders follow this formula. You can compute your total loan and interest calculator with these steps.

Step 1. Divide the interest rate by how many payments you’ll make in a year. If you’re making monthly payments, you’ll divide by 12.

Step 2. Multiply this rate by the total loan amount, not the balance of your first payment. This will give you the interest amount for the first month.

Sample Computation 

Here’s an example with a loan principal of S$20,000, a loan term of 2 years, and an interest rate of 3% per year, with monthly payments:

Monthly Interest Amount = (Interest Rate / Number of Payments) x Loan Principal 

Monthly Interest Amount = (3% / 12) x S$20,000 

= (0.03 / 12) x S$20,000 

= (0.0025) x S$20,000 

Monthly Interest Amount = S$50

So, S$50 will be your interest for the first month.

Step 3. You need to calculate the new loan balance for the following months. Remember this formula: 

New Loan Balance = Principal Amount – (Repayment Amount – Interest)

Step 4. Multiply the interest rate by the new loan balance instead of the original loan amount. It ensures you calculate interest on the remaining amount you owe, not the initial borrowed sum. 

Sample Computation 

Suppose your monthly repayment is S$883.33 (calculated earlier), including both principal and interest. Using this example, calculate the new loan balance after the first payment.

New Loan Balance = Principal Amount – (Repayment Amount – Interest)

New Loan Balance = S$20,000 (S$883.33 – S$50)

= S$20,000 − S$833.33

New Loan Balance = S$19,166.67

For instance, if your new loan balance after a payment is S$19,166.67 and the monthly interest rate is 0.0025. 

Next Month’s Interest Amount = 0.0025 x S$19,166.67

Next Month’s Interest Amount  = S$47.92

Using these steps, you can see how your loan balance changes and how much interest you pay each month. It helps you track your payments and loan payments accurately month by month.

You may utilise a spreadsheet to make your calculation easier. It can automate the computations and help you forecast your payments and interest for the upcoming months. As a result, you can manage your finances better. Most importantly, it prevents you from applying for another loan.

However, remember that a personal loan calculator might differ on your chosen lender, so always check with them.

How To Calculate Personal Loan Repayment?

Once you’ve figured out how much interest you’ll pay on your loan, you can find your total repayment amount using this formula:

personal loan calculator for repayment

Total Repayment Amount = Principal Amount + Total Interest Amount + Any Additional Fees

Each part represents the original amount of money you borrowed and the total amount of extra money you’ll pay for borrowing the loan based on the interest rate and loan term. However, banks and legal moneylenders charge additional fees. Some charges vary depending on the loan type and provider you applied for. Examples of these are processing fees. 

Sample Computation 

Our additional charge is a 10% processing fee in line with the example above.

Step 1. Calculate the Processing Fee by multiplying the loan amount by 10%. The percentage varies on how much your loan provider will charge you. 

Processing Fee = 10% x Principal Amount 

= 0.10 x S$20,000

Processing Fee  = S$2,000

Step 2. Find the Monthly Interest Amount. Divide the annual interest rate by the number of payments per year.  Then, multiply the monthly interest rate by the loan principal. We have already determined it at S$50.

Step 3. Calculate the Total Interest for the Loan Term. Multiply the monthly interest amount by the total payments (months). For a 2-year loan, there are 24 months.

Total Interest = S$50 x 24 months

Total Interest = S$1,200

The total interest for the loan over two years is S$1,200.

Step 4. Compute the Total Repayment Amount: Add the total interest and the processing fee to the loan principal.  Following the formula above: 

Total Repayment Amount = S$20,000 + S$1,200 + S$2,000

 Total Repayment Amount = S$23,200

Therefore, over two years, you’ll repay S$23,200.

Step 5. Get the Monthly Repayment Amount. Divide the total repayment amount by the number of months—24 months. 

Monthly Repayment Amount = S$23,200​ / 24 months

Monthly Repayment Amount  = S$966.67

So, your monthly payment will be S$966.67.

This step-by-step guide teaches you to compute the interest you’ll pay and your monthly payments for a personal loan in Singapore, including the processing fee. You can always use the simple online loan calculator if this seems too complex.

Fortunately, you don’t have to worry about remembering the formulas. With an online personal loan calculator Singapore, you can enter the details accurately. Then, click the “Calculate” button to get the results. 

How to Use an Online Personal Loan Calculator Singapore?

Doing the step-by-step computation about the personal loan is tedious. Discrepancies are inevitable. Also, you can only get accurate results if you input the correct details. Fortunately, you can get the most precise calculation with a personal loan and interest calculator. Here’s how to use an online calculator. 

How to Use Personal Loan Calculator Singapore

Step 1. Enter the Loan Amount

Start by entering a fast cash loan you want to borrow. Personal loans in Singapore range from S$500 to S$100,000. Eligible borrowers with healthy credit scores, solid credit histories, and regular incomes are more likely to be granted higher loan amounts.

Step 2. Input the Interest Rate

Next, enter the interest rate you expect to pay on your loan. The interest rate charged varies based on your credit score and financial situation. You can receive lower rates if you are a borrower with good credit and low debt-to-income ratios. In addition, you may check your preferred lender’s website for their interest rate. 

Step 3. Choose the Repayment Term

Select how long you want to repay the loan. Singapore’s personal loan calculator typically offers terms ranging from two to seven years. Longer terms equate to lower monthly payments, but you’ll pay more overall interest. Shorter terms cost less in interest but have higher monthly payments. Choose a term that balances manageable monthly payments and minimises interest costs.

Step 4. Set the Repayment Start Date

Pick the date when you’ll make your first loan repayment. Many licensed money lenders require the first payment about 30 days after you receive the loan funds. Discuss your preference with your chosen lender and how you can compromise on the loan repayment scheme. 

Step 5. Include an Origination Fee (Optional)

Some legal moneylenders charge an origination fee. It is a percentage of the principal loan amount. Often, trusted lenders charge it between 1% to 10%. This fee goes to the money lender to process the personal loan. Not all lenders charge a processing fee. However, you’ll typically learn about it when you receive a loan offer. So always be vigilant with other possible charges with a personal loan Singapore. 

A personal loan calculator is more convenient to use rather than manual computation. You can adjust the vital factors to evaluate how they affect your overall loan costs and monthly repayments. This way, you can understand how one aspect of the other. 

However, the results are only estimates. But still, it can give you a clear picture of the costs of applying for a personal loan. Therefore, you can weigh your informed decisions about borrowing money. Most importantly, you can pick the one that best fits your financial situation and goals.

Nevertheless, don’t be shy about communicating with your licensed moneylender like Cash Mart. As a reputable money lending company, it evaluates and elaborates all fine print. This way, you know your loan application’s entire process and status. Above all, Cash Mart Singapore prioritises the discussion of your personal loan and interest calculator. 

Top Pointers When Using a Personal Loan Calculator

A personal loan calculator is efficient and beneficial when picking a trusted money lender. Its results allow you to make a sound decision before you apply for an online instant loan in Singapore. So before you take out, utilise an online loan calculator, remember these tips. 

hidden fees from personal loan calculator

Enter accurate details

When using a personal loan calculator Singapore, it is vital to input the correct information to obtain the best results. The loan calculator usually asks for three things: the loan amount, the interest rate, and the term.

Make sure the numbers you enter are correct. If you make a mistake, the personal loan calculator will give you the wrong monthly payment amount. It could mess up your budget and plans. So, double-check everything before you hit calculate. Accurate info leads to accurate results.

Experiment with data as needed

Try different settings for the loan amount, term, and interest rate on the personal loan calculator. See how changing each one affects your monthly payments. It is a great way to find options that you can afford. 

By adjusting the data, you can verify what best fits your budget. As a result, you can make an intelligent choice for your financial plans. Also, you can avoid surprises later that can trigger further financial struggles.

Be cautious with the total personal loan interest calculator

Look at how much extra money you have to pay in interest. Take note that it must be over the life of a personal loan at different rates. If you do this, you can foresee the actual cost of borrowing. Then, you can compare it with the various legal moneylenders in Singapore. 

Choose a reliable moneylender that offers the lowest total interest. This will save you money in your personal loan repayment in the long run. You should shop around first before picking the best deal to keep your costs down.

Be wary of hidden charges.

Some fees might not show up in the online personal loan calculator. Remember that various money lending facilities have other charges included in your loan. These could be the processing fees, late payment fees, or early repayment penalties. 

Always read the fine print carefully. Contact the registered moneylenders directly to clarify any vague fees. Also, ask about any extra costs that may be part of the personal loan. If you know about these hidden fees, you can prevent mishaps in your budget planning.

Always compare

Use the personal loan calculator to figure out estimates from different money lending companies. Review the repayment costs and terms for each option. Every result will allow you to understand each lender’s loan products. 

You can find the personal loan that suits you best by comparing these. This way, you can choose the most affordable and favourable loan service. Taking the time to differentiate options ensures you are on the right path to improving your financial status. 

A personal loan calculator Singapore is reliable if you know how to use it properly. With these pointers, you can maximise its purpose in helping you get the most suitable loan. 

FAQs About Personal Loan Calculator Singapore

How to calculate personal loan eligibility?

The borrower’s qualifications are crucial in getting approved for the personal loan application. If you wish to secure a quick cash, you must be a Singapore Citizen or a Permanent Resident. Also, your age must be between 21 and 65. Lastly, your annual minimum income is S$20,000. It seems restrictive, mainly if you apply to banks and other financial facilities. 

Fortunately, reputable money lenders in Singapore are versatile. These lenders abide by government regulations. That’s why even foreigners can take up a loan and use a personal loan calculator. In addition, legal moneylenders cater to borrowers with less than S$10,000 annual income. Therefore, you can still be eligible to apply for a personal loan. 

How much can I take personal loan calculator?

Taking out personal loans from legit moneylenders in Singapore offers a safe range of loanable amounts. You can only receive disbursed cash based on your annual salary. For example, secured personal loans guarantee any amount because of your collateral. If you pawn your house or car, you can assure your instant loan cash. 

On the other hand, unsecured personal loans don’t require collateral. But there are limits. The maximum loanable amount you can take in Singapore across all moneylenders depends on your income. 

For example, a Singaporean and PR with an annual income lower than S$10,000 and less than S$20,000 can get a S$3,000 cash loan. Meanwhile, a Singaporean and PR with a yearly income of at least S$20,000 can receive a cash loan of six times the monthly income

However, a foreigner with an annual income lower than S$10,000 can receive an instant loan cash of S$500. Meanwhile, a foreigner with a yearly income of at least S$10,000 and less than S$20,000 can receive an instant loan cash of S$3,000. Lastly, a foreigner with an annual income of at least S$20,000 can receive an instant loan cash of six times the monthly income.

What is the best personal loan rate?

A reasonable interest rate for a personal loan depends on your credit score. You can get a better rate with a good credit score. In Singapore, the Ministry of Law mandated that the maximum interest rate charged by legal money lenders is 4%. 

You get a favourable deal if your interest rate falls below 4%. However, if your credit score is lower, your rate might be higher than this. It’s always best to check different offers to find the best rate for you.

Are there other online loan calculators?

Yes. Aside from the personal loan calculator, several other online ones are available. 

Debt-to-Income Ratio Calculator helps you determine how much of your income goes to paying off monthly debts. You use your total monthly debt payments and divide that by your income.

The Debt Consolidation Calculator shows how combining all your debts into one loan might save you money and demonstrates why consolidating your debts is an excellent idea.

Personal Loan Refinance Calculator determines if refinancing an existing personal loan is worth it. It helps you decide if you can save money by getting a new loan with better terms.

Mortgage Calculator figures out your monthly payments if you’re buying a house. You enter the loan amount, interest rate, and loan term.

An Auto Loan Calculator is used when buying a car. Its computation depends on your preferred loan amount, interest rate, and term, which will result in your monthly payments.

The Renovation Loan Calculator computes the funds you need to improve your home. It helps you plan your budget, foresee whether you can afford the project, and manage your finances better.

Does the credit score affect the personal loan interest rate?

Yes. Your credit score is like a report card for how well you manage money. A high credit score shows lenders that you’re good at paying back your loans and credit card bills. As a result, you can get lower interest rates on your loans.

But if your credit score is low, you might need help managing your repayment and credit card bills. Licensed money lenders in Singapore see this as risky so they might charge you higher interest rates. In addition, lenders might give you stricter loan terms, like shorter time to repay the loan or higher monthly payments. So, always maintain a good credit score to save money. Meanwhile, avoid building a credit score, as it can cost you more.

Is a personal loan calculator in Singapore accurate?

Personal loan calculators are handy online tools that give you a good idea of your monthly repayments. But remember, they’re not perfect. A personal loan calculator might miss some fees or changes in interest rates. It’s always good to check with your lender for exact numbers.