Term loans, revolving loans, personal loans, business loans. What do all these terms mean? With all these loans made available in the market, it is important to know the characteristics of each loan. This is so that you are well aware of the terms and conditions associated with the loan. It also ensures that you are able to make comfortable repayments without having to strain your finances. Looking to take out a term loan with Lending Bee? Here is all you have to know about taking out a term loan in Singapore. What Is A Term Loan? Term loans are the types of loans that can get repaid through regular payments during a specified period. A term loan can be given to an individual or as a small business loan. Being able to repay over an extended period is an attractive prospect. This is especially so for expanding and new businesses that strive to increase their profitability as time goes on. A term loan can be an effective way to increase capital to boost the ability of a business to access supplies. For example, an enterprise may use a loan to pay rent for a bigger space or purchase vehicles for operations. Some individuals may also use a term loan as a form of home equity loan. What Are The Interest Rates For Term Loans? One of the factors to keep in mind when applying for a term loan is whether it has a fixed interest rate. Fixed interest rates refer to interest rates that do not change or increase regardless of what is going on within the financial market. Borrowers can take advantage of fixed rates when low interest is getting offered. At Lending Bee, we ensure that our interest rates are fixed between 1% – 4%, depending on your credit score and ability to make timely repayments. If a term loan comes with compound interest, this means that the interest amount is added to the principal amount periodically as the interest depending on how long the term lasts. With compound interest, it is essential to find out whether
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