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Adulting is a thrill. It’s a time for experimentation and living and finding an identity that is uniquely yours. It is also thrilling because the consequences feel more real. That’s why having protection is so important.
Financial protection that is!
What are some big #adulting goals you have? Going on your first big trip? Getting married? A new home? Starting your own business?
These are big dreams for which you should plan and save up. But you shouldn’t have to go all in without a safety net. Today, we’re making a case for a financial solution that could be your safety net - personal loans.
You might be asking: How is taking on debt a safety net?
A loan that’s designed differently, like the GXS FlexiLoan which is a personal loan with a credit line feature built into it, can alleviate the anxiety of taking on a loan. The GXS FlexiLoan is different from a lot of other personal loans in the market in that it is designed to give you a leg-up.
It is one of the most competitive personal loans in the market - interest rates start at 2.99 per cent per annum (this translates into an effective interest rate of 5.65 per cent per annum) and there are no annual, processing, early repayment or late fees. Plus, the credit line feature means you can draw multiple loans whenever you need it.
Because of this flexibility, the GXS FlexiLoan is useful both in cases where you know the total cost of the project or in cases where the final bill from your project is not fixed.
Best of all, you can choose your repayment date and loan tenure and save on interest when you repay your loan early thanks to the way GXS FlexiLoan is designed.
Here’s an example. You have finally bought your first home. First off, congratulations! Levelling up in life is exciting, especially when you’ve been planning and saving for it.
Here’s where GXS FlexiLoan, a personal loan with a standby line of credit feature built in, shines.
Say you’re approved for S$20,000 credit limit. This means you can take up a loan to borrow up to S$20,000. If you choose to only borrow S$5,000, you pay interest on the amount you drew down.
Benefit #1: Tailored to your needs
Back to your new home. With the personal loan, you could have drawn up to S$20,000 to pay for the renovation.
But because you’ve been a prudent saver, you decided to use the savings you’ve been building up for this design project and only needed to draw down S$10,000 to make the required payments.
Great news - and in 2 parts! One, you’re only paying interest on the S$10,000 you borrowed. Secondly, as you are building up those reserves again, the remaining S$10,000 you have available to you on your personal loanis a safety line in the event of unexpected events.
By the way, GXS FlexiLoan is designed to take into account well, life.
Benefit #2: A safety line when you need it
You customised cabinetry to fit your life just right - that home bar, coffee corner or home theatre console. But then you’re suddenly slapped with additional costs because the shelvings don’t fit and the carpentry needs to be redone. It’s an additional S$1,000 that you didn’t account for.
The alternative is, of course, to live with the flaws, in your brand new home. This is where the safety net comes in handy.
Remember that additional S$10,000 you have available to you? Thanks to the way our loans are designed you can now take active control of the decision-making process rather than let the finances dictate your decisions. Are the additions worth the additional cost or does it make more sense to push this back and do a mini-renovation at a later date?
If you decide to go ahead and follow-through on your dream - assuming of course that you have done the maths and it is a prudent decision! - we have some good news for you: you have S$10,000 available to you, drawing down this amount is fast and fuss-free and you don’t have to apply for yet another loan.
Benefit #3: Enabling dreams
The flexibility the GXS FlexiLoan provides makes it particularly useful for a variety of situations, whether you saved up for them, are saving up for them, or in case of an emergency.
Levelling up in life is a continuous process and we hope that this sheds some light on how you can potentially wield a personal loan to your benefit. It simultaneously provides a leg up and a life line - now that’s what we call win-win.
Before you decide to take a loan, make sure you fully understand the terms and conditions involved and make sure you are able to meet the payment schedules. Here are some starting considerations to keep in mind. And, be sure to head over here to find out more about the GXS FlexiLoan.
By the way if you’re new to our series on loans, welcome! You might also want to check in on “Think you’ve lived a loan-free life?” where we talk about how a loan can be a useful addition to your financial toolkit.
