When it comes to borrowing money through personal loans, one of the most critical factors to consider is the interest rate. It can significantly impact the total cost of your loan and how manageable your monthly payments will be. However, when trying to determine which bank offers the best personal loan, it's important to consider several other factors alongside a low interest rate. In this article, we explore all the essential factors to consider when choosing a personal loan.
Factors to Consider When Choosing a Personal Bank Loan
1. Interest Rate
The interest rate is a pivotal factor in determining the overall affordability of your personal loan. When comparing loan offers from different banks, a lower interest rate is generally preferable, as it means you'll pay less in interest charges over the life of the loan. Interest rates depend on several factors, including your creditworthiness, where better credit scores typically lead to lower rates, the loan quantum and various other market conditions.
CIMB Personal Loan offers an attractive interest rate as low as 3.38%* p.a. (EIR from 6.32% p.a.) Transparency is a key highlight here, as knowing the exact rate at which you'll be borrowing helps you make informed financial decisions. Unlike many loan providers who only publish their lowest rate offered without sharing details on how you can obtain that rate, CIMB Personal Loan is transparent in that we publish all our loan interest rates openly on our website such that it is easy for you to understand. Check out the interest table published on the CIMB Personal Loan page and you can find out the interest rate you will be getting based on approved loan amount and tenure.
2. Processing Fee
Apart from interest rates, processing fees can add to the cost of borrowing. Processing fees are charges levied by lenders to cover the administrative costs of processing your loan application. Some loan providers may impose substantial processing fees, which can significantly increase the overall cost of your loan. CIMB Personal Loan stands out because it offers a hassle-free experience with no processing fees for approved loan amount above $5,000. This means you can avoid unnecessary expenses, making your loan more cost-effective.
3. Loan amount
Personal loans are versatile financial tools that can be used for various purposes. Whether you need funds for education, home renovation or a medical emergency, a personal loan can provide the financial flexibility you need. This is where the loan amount, comes into play.
CIMB Personal Loan allows you to borrow up to 8 times* your monthly income. This flexibility ensures that you have access to the funds you require to meet your diverse financial goals.
While the primary focus is on minimising costs, it's always a bonus when you can get something in return. CIMB offers a tempting up to S$2,000 cashback promotion for its Personal Loan product. This not only helps you save on interest and fees but also gives you a little extra cash in hand.
Discover the Advantages of a CIMB Personal Loan
The CIMB Personal Loan stands out as an optimal option for prudent borrowers, presenting competitive interest rates, no processing fees, substantial loan allowances, and an attractive cashback offer. The application process is entirely online, designed for efficiency and can be completed in under 10 minutes. There's no requirement to download any application, nor is there a prerequisite to hold a CIMB bank account or credit card prior to application.