Imagine having to do the housework at home without the help of a vacuum cleaner and washing machine. You’ll most probably raise the white flag after a few tries.
Home appliances and electronics have made life easier for us today. No more trying to manually clean your carpets or wash your clothes. Not only do electrical appliances save time, they allow for higher productivity by saving us lots of time.
Therefore, things might go southward when one of these electrical appliances suddenly breaks down. In such an emergency, you will have to replace the broken down item quickly. This means, you’ll probably require a large sum of money to make the purchase.
Electronic products can easily range from a few hundred to thousands of dollars.
During such a situation, you might either use your savings or take out an electrical appliances loan. These are all viable options.
If you don’t have enough to cover the cost of the item, an electrical appliances loan bridges the gap for you. Thus, you can quickly purchase it and then comfortably make payments towards it. This way, you also won’t have to exhaust your savings that can be used for other more pressing emergencies.
How Much Do Electrical Appliances Cost In Singapore?
There may be different scenarios where one might turn to an electronics loan Singapore. Regardless of whether it is due to wear and tear, or because you are moving into your new home, an electronics loan can prove to be very handy.
If you are moving out of your parents’ home and into your first flat, you will need to purchase everything at once. This can be very costly. For instance, installing 4 air-conditioners in your HDB flat will already set you back by about $5,500.
However, with Credit 21’s Electrical Appliances loan, you will be able to pay for the items comfortably without breaking your bank . Here are just some of the costs that you may be looking at:
|Electrical Appliance||Cost (Low Range)||Cost (Mid Range)||Cost (High Range)|
|Washing Machine / Dryer||$300||$679||$2,000|
As you can see, these items do not come cheap and life without them can prove to be a hassle. Therefore, as soon as they go out, you must consider replacing them quickly. If you don’t have enough saved, taking out a loan to make the purchases can save the day.
Things To Consider Before Applying For An Electrical Appliances Loan
Prior to taking out an electronics loan, there are certain things that you must do as follows:
1. Do your research on the electrical appliances
Research on the cost of the item or items you want to purchase. This is something that you can easily do online but if you like to drive around to the various retailers and speak to them one on one, do that. By doing this, you will able to tell which product is the best for your needs, and you will also find out where you can get the best deals.
2. Do your research on the different lenders
You want to make sure that you look at both traditional lenders and licensed moneylenders. Find out what their eligibility requirements are, and how long it takes to be approved or disapproved for a loan. If you need your electronics urgently, then opt for the faster lender.
At Credit 21, we pride ourselves in our simple and quick application process. You’ll be able to know within 24 hours if you’ve been approved of the loan.
3. Support documents needed
As with all licensed money lenders, we will require your original IC, CPF statement, and bill statements such as your phone or electricity bills.
4. Credit score
It is always a good idea to get your credit report and review it prior to taking out a loan. Ensure that the details therein are correct. If you have paid off a loan and it is still reflecting as unpaid, deal with that. If something needs to be stricken off your record, make sure it is done. The better your credit score and report look, the higher the chances of getting your loan approved.
5. TDSR (Total Debt Servicing Ratio)
You must remember that the government has capped your TDSR at 60%. This simply means that if the amount of money you are paying monthly towards debt is at the 60% mark, or just below it, chances are that lenders will not approve your loan application. Consider your current TDSR, and how it will be affected when you take another loan.
What Should I Do When Applying For An Electrical Appliances Loan?
As mentioned earlier, there are many lenders willing to extend you the loan you need to purchase electronics, if you meet their eligibility requirements.
This means that you will have to compare lenders and the loans that they offer before settling on one or the other. Here are some of the key factors to consider when taking out an electronics loan:
1. Loan amount
You must consider the loan amount. Ideally, you want it to fully cover the cost of the electronics that you are looking to purchase.
Find out how much money you qualify for based on your income. As a rule of thumb, you are allowed to borrow up to 6x your monthly income. The rule of thumb is not to take more money than you need, so if the lender can give you more than you need, don’t be too quick to take the excess.
2. Interest rates
This is a critical factor because this is really the largest loan cost. If the interest rate is too high, then opt for a lower interest rate. However, if the deal is too good, think twice. Most times if the interest offered is too low, there is a catch. Be sure to read the fine print to find out where the catch is.
3. Loan tenure
Pick a loan tenure that allows you to pay off the loan without strain, but within the shortest time possible.
If you take a tenure that is too short, you may struggle to pay off the high monthly repayments, and if you take a tenure that is too long, then you will end up paying a lot more in overall interest.
Strike a balance. It is important to note that paying off a loan as fast as possible improves your credit, and reduces your TDSR faster, just in case you need to take another loan.
4. Fees and charges
You must read the fine print to know what these are. Most lenders charge an administrative or loan processing fee, late payment charges, early repayment fees and more. Find out what they are so that you can do your best to keep the cost of the loan at a minimum.
Credit 21’s Electrical Appliances Loan Is Simple And Fuss Free!
With the right lender, you can purchase all the electronics you need and not feel the strain. You don’t have to be inconvenienced by broken electronics that no longer do their job well or have stopped working altogether.