Affordable Personal Loans Singapore

Loan Payment Formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Monthly Payment (PMT):

Total Payment:

Total Interest:

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1. What is the Loan Payment Formula?

The PMT formula calculates fixed monthly payments for a loan with a fixed interest rate. It's commonly used for personal loans in Singapore, including those from banks like Standard Chartered (SCB) with rates around 3.07% p.a. EIR.

2. How Does the Calculator Work?

The calculator uses the PMT formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Where:

\( P \) — Principal loan amount (SGD)
\( r \) — Monthly interest rate (annual rate divided by 12)
\( n \) — Number of monthly payments
\( PMT \) — Monthly payment amount (SGD)

Explanation: The formula accounts for both principal repayment and interest charges over the loan term.

3. Importance of Loan Calculation

Details: Accurate loan payment calculation helps borrowers understand their financial commitments, compare loan offers, and plan their budgets effectively.

4. Using the Calculator

Tips: Enter principal in SGD, annual interest rate in percentage, and loan term in months. Typical Singapore personal loans range from 1-7 years (12-84 months) with amounts from SGD 1,000 up to 10x monthly salary.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for personal loans in Singapore?
A: Rates vary but typically range from 3.07% p.a. (EIR) for banks like SCB to higher rates for other lenders, depending on creditworthiness.

Q2: Are there any fees not included in this calculation?
A: Yes, some loans have processing fees (1-3%) or late payment charges that aren't reflected in the monthly payment calculation.

Q3: What is the difference between flat rate and effective interest rate (EIR)?
A: Flat rate calculates interest on original principal throughout the loan term, while EIR accounts for reducing balance and gives a true cost comparison.

Q4: Can I get instant approval for personal loans in Singapore?
A: Many banks offer instant approval decisions online, with cash disbursement within 1-3 working days if approved.

Q5: Are there cash incentives for taking personal loans?
A: Some banks offer cashback or vouchers for new loan customers, but always compare the total cost including these incentives.