It is a loan where a sum of money is borrowed and it is paid back in fixed installments.

Unlike other types of loans, personal installment loans are closed-end loans, which mean that the bank gives you the entire amount at the beginning. There is usually a set or fixed amount that you have to pay back over a certain period of time. Loans of this type are commonly used to cover unexpected expenses, make large purchases, or consolidate debt.

They may range in size from several hundred dollars to several thousand dollars or more, and their length may range from a few months to several years. Throughout the loan period, the payments remain the same.

Getting a personal installment loan

Here's what you have to do to qualify:

• You must be a Singaporean or a permanent resident
• Age 21 and older
• A minimum income of $30,000
• You may also need to consider other factors, such as your bank account transactions

However, there are exceptions, such as POSB Loan Assist, which requires a minimum annual income of $20,000. However, some requirements may apply to foreigners, such as a higher minimum income. If you are interested in personal loans, make sure to compare the different types and the interest rates.

To learn more about personal loans, contact your bank of choice.