Top lawyer and former Rajah & Tann managing partner Patrick Ang dies at 61
The law firm confirmed his passing in a statement on Saturday (Jun 14).
Ng Kim Beng, R&T managing partner, said: 'R&T has lost a celebrated lawyer, a selfless leader, and most of all, a cherished and deeply loved friend and colleague.'
'His sudden and unexpected passing leaves an immense void,' said Ng.
Ang was a top insolvency lawyer with three decades of experience. He was best known for his handling of high-profile collapses including the likes of China Aviation Oil, Hin Leong, Lehman Brothers and Swiber.
The top lawyer was also the first Singaporean and the fourth lawyer from Asia to be inducted into the American College of Bankruptcy, a global organisation for leading bankruptcy and insolvency practitioners.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
Ang became managing partner of R&T in 2019, taking over from Senior Counsel Lee Eng Beng.
During his tenure, he led the law firm's decade-long regionalisation drive under Rajah & Tann Asia, a regional network of law firms spanning across Southeast Asia and beyond.
His leadership was recognised with the Managing Partner of the Year award at the Asia Legal Business South-east Asia Law Awards in 2024 and 2025.
Just earlier this year, Ang handed the reins over to Ng, an arbitration lawyer, while remaining vice-chairman of Rajah & Tann Asia.
He leaves behind his wife and three daughters.
Formidable legal mind
In a tribute on Saturday morning, Minister for Law Edwin Tong called Ang a 'formidable legal mind' with an 'unwavering stout heart for Singapore'.
'In my earlier years of practice, we often found ourselves on opposite sides of the table in complex restructuring matters,' wrote Tong. 'Even then, I found it impossible not to respect him.'
'Patrick had a remarkable way of thinking several steps ahead – calm, strategic, incisive. He approached even the most difficult negotiations with integrity and grace, and never stole a match with an unfair point.'
Tong said Ang also helped with drafting Singapore's emergency Covid-19 (Temporary Measures) Bill and was recognised for his help with the Public Service Star (Covid-19) National Day Award.
'His passing is not only a profound loss to his firm, but also to the legal profession and to Singapore, which he served with quiet resolve, unwavering strength and deep purpose,' the minister said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Independent Singapore
5 hours ago
- Independent Singapore
Singaporean man hits multimillionaire status after years of saving and investing, asks what's next
SINGAPORE: A Singaporean man who recently became a multimillionaire after years of investing and working in the government sector took to social media to ask what he should do now that he's achieved financial freedom. Posting on the r/singaporefi subreddit on Friday (July 11), the man shared that he had spent the last decade in the public sector earning about S$130,000 annually, while also building a solid investment portfolio that has delivered average returns of 15% per year. 'All my life, I had this clear goal: become a millionaire. Then, once I hit that, it morphed into being a multimillionaire. And, well, I did it. I actually hit both those targets,' he wrote. However, now that he's financially set, the man admitted he's feeling a little lost. 'Here's the thing, though – now what? It feels like I just beat the Elite Four in Pokémon Red, and suddenly there's no more map to explore,' he said, adding that his job now feels 'pointless' and that his investment returns far outpace his salary. See also Loans: Exploring the Good vs the Ugly To add to his financial cushion, his elderly father recently informed him that he would be transferring a 'significant sum' of money to him. 'So yeah, I'm definitely going to have more money than I could ever possibly spend,' he said. Seeking advice from others in the community, he asked, 'Has anyone else here hit this point? Where your financial freedom is basically locked in, and you're left wondering what to do with all this time and lack of external motivation? How did you spend your time after FIRE if your journey looked anything like mine?' 'Go find what you enjoy doing and do just that.' In the comments, one Singaporean Redditor recommended, 'Quit your job, buy a ticket to Iceland, rent a van, and enjoy your life. Buy mountaineering equipment, and climb a mountain with your friends. Go see animals in the wild, swim in a cold river, stand underneath a waterfall, and skydive.' Another shared, 'Not at FIRE yet, but I'd say, go find what you enjoy doing and do just that. Many of us have our jobs as our whole life until we one day wake up from the trance and then find ourselves lost as to what to do with our time.' A third commented, 'I'm not a millionaire, but if I ever hit that amount, I will not want to quit my job. I'd continue working, and knowing my future is secure, I'd be more inclined to just cruise by at work. At the same time, do some charity work or volunteer work to help the less fortunate. Time to give back to society. Or if you are feeling more adventurous, go start a business.' In other news, a nurse who recently left her job at a home care company took to social media to share her frustration after her former manager allegedly failed to reimburse her S$1,500 in approved transport claims. In a post on the r/askSingapore forum, the nurse, who has eight years of experience, explained that she had been verbally assured from the start that Grab fares for house visits would be fully reimbursed. Read more: Nurse says ex-manager didn't return S$1.5k in approved transport claims, seeks advice on Reddit See also Why the Cheapest Car Insurance Plan Isn't Always the Best Featured image by Depositphotos (for illustration purposes only)
Straits Times
12 hours ago
- Straits Times
Australia and China: Trade flows and security tensions shape ties
Sign up now: Get ST's newsletters delivered to your inbox Australia's Prime Minister Anthony Albanese and China's President Xi Jinping speak as they prepare for a group during the G20 summit in Rio de Janeiro, Brazil, November 19, 2024. REUTERS/Pilar Olivares/File Photo SYDNEY - Australia's Prime Minister Anthony Albanese arrived in Shanghai on Saturday for a six-day visit to three Chinese cities where regional security tensions and economic ties are likely to dominate talks. Albanese's second visit to China, where he will meet President Xi Jinping, comes after Canberra stepped up screening of Chinese investment in critical minerals and as U.S. President Donald Trump rattles the global economy with sweeping import tariffs. Here is a timeline of relations between Australia and China over recent years: Nov 17, 2014 - Australia sealed a landmark free trade agreement with top trade partner China, concluding a decade of negotiations. It comes into effect in late 2015. Dec 5, 2017 - Australia, concerned about Chinese influence, announces a ban on foreign political donations to prevent external interference in its politics. Aug 23, 2018 - Australia bans Huawei Technologies from supplying equipment for its planned 5G broadband network, citing national security regulations. Apr 2020 - Australia seeks support for an international inquiry into the origins of the COVID-19 pandemic. China's then ambassador to Australia says that in response to the call, the Chinese public would boycott Australian wine, beef and tourism. Top stories Swipe. Select. Stay informed. Singapore Government looking at enhancing laws around vaping to tackle issue of drug-laced vapes in Singapore Singapore Why the vape scourge in Singapore concerns everyone Singapore I lost my daughter to Kpod addiction: Father of 19-year-old shares heartbreak and lessons Singapore Organised crime groups pushing drug-laced vapes in Asia including Singapore: UN Singapore Prison school to NUS: At 36, former drug abuser finds it's never too late to get a degree Singapore Bland and boring? Some hospitals seek help from big names to enhance food menus for patients Asia Patriotism, peace and pain: The politics behind China's World War II narrative World US slaps 30% tariffs on EU and Mexico; EU warns of countermeasures Jun 9, 2020 - China urges students going overseas to think carefully before choosing Australia, citing racist incidents, threatening a $27.5 billion market for educating foreign students. Aug 2020 - Australian citizen Cheng Lei, a business anchor for Chinese state television in Beijing, is detained. Nov 27, 2020 - China announces temporary anti-dumping tariffs on Australian wine. Shipments of Australian live lobsters, timber and barley are also blocked or restricted around this time. China's embassy lists 14 grievances with Australia, including the blocking of 10 Chinese investments on national security grounds. May 22, 2022 - Australia's Labor Party, led by Albanese, wins the general election ending almost a decade of conservative rule. Nov 15, 2022 - Albanese meets Xi on the sidelines of the G20 in Indonesia. It is the first leaders' meeting since 2016. Jan 3, 2023 - China allows three government-backed utilities and its top steelmaker to resume coal imports from Australia. Aug 5, 2023 - China ends 80.5% tariffs on Australian barley. Oct 11, 2023 - China releases Australian journalist Cheng Lei after three years in a Beijing prison on national security charges. Oct 22, 2023 - China agrees to review dumping tariffs of 218% on Australian wine. Australia pauses WTO complaint. Nov 6-7, 2023 - Visiting Beijing, Albanese tells Xi and Premier Li Qiang that a strong relationship between the two countries was "beneficial into the future". Xi says stable bilateral ties served each other's interests and both countries should expand their cooperation. Jan 18, 2024 - Australia rejects comments by China's ambassador seeking to deflect blame from China's navy for the injury of Australian military divers in an incident near Japan in November. Feb 5, 2024 - A Beijing court hands Australian writer Yang Hengjun a suspended death sentence, five years after he was first detained in China and three years after a closed-door trial on espionage charges. Mar 29, 2024 - China lifts tariffs on Australian wine, triggering a surge in imports. Dec 3, 2024 - China lifts final restrictions on Australian beef. Dec 12, 2024 - Australia strikes rugby league funding deal with Papua New Guinea that is contingent on its Pacific Islands neighbour rejecting security or policing ties with China. Dec 26, 2024 - China resumes imports of Australian lobster. Feb 21, 2025 - Australia's Foreign Minister Penny Wong raises concerns with Chinese counterpart over inadequate notice given by the Chinese navy of a live-fire exercise in international waters between Australia and New Zealand that forced airlines to divert flights. May 3, 2025 - Albanese's Labor government is re-elected for a second term in national elections. REUTERS
AsiaOne
a day ago
- AsiaOne
9 best personal loans in Singapore with lowest interest rates (July 2025), Money News
If you're in urgent need of money, but are too paiseh to borrow from your family and friends, your best bet is probably a personal loan. With a personal loan, you borrow cash from a bank or financial institution and pay them back in fixed instalments over an agreed period. But you'd typically need to meet a couple of eligibility requirements before you get it approved. Stuff like your income and credit history. In this article, I'll break down the key terms you'll come across frequently while browsing loan listings — plus highlight the best personal loans currently available in Singapore. Note: Interest rates are approximate and may vary based on individual credit profiles and prevailing market conditions. Please consult the respective banks for the most accurate and up-to-date information. 1. At a glance: Best personal loans in Singapore (July 2025) Here are the current starting interest rates on offer from the most popular personal loan providers in Singapore. We'll use the example of a Singapore citizen earning $3,500 a month, who wants to borrow $10,000 and repay it over three years. Personal loan Interest rate and Effective Interest Rate (EIR) Processing fee Monthly repayment Eligibility DBS/POSB Personal Loan 1.99% (EIR 4.17%) 1% $294 – Singaporean/PR – Foreigners with existing Cashline and/or Credit Card account – Min. $20,000 annual income – Existing DBS/POSB customers Trust Instant Loan 2.22% (EIR: 4.22%) 0% $296 – Singapore Citizen/PR: $30,000 – Foreigner: $60,000 – Must have a Trust credit card CIMB Personal Loan 2.68% (EIR 5.06%) 0% $319 – Singapore Citizen/PR: $20,000 – Malaysian (residing in SG): $30,000 UOB Personal Loan 1.85% (EIR 3.40%) 0% $293 – Singapore Citizen/PR: $30,000 – UOB Credit Card/CashPlus customer Standard Chartered CashOne 1.90% (EIR: 3.63%) 0% $294 – Singapore Citizen/PR: $30,000 – Foreigner (with EP): $90,000 GXS FlexiLoan 2.88% (EIR 5.45%) 0% $303 – Singapore Citizen/PR: $20,000 HSBC Personal Loan 2.20% (EIR: 4.00%) 0% $296 – Singaporean/PR: $30,000 (salaried workers) $40,000 (self-employed or commission-based workers) – Foreigner (with EP): $60,000 Citi Quick Cash with Ready Credit (New Customers) 3.45% (EIR: 6.50%) 0% $306 – Singaporean/PR: $30,000 – Foreigner: $42,000 Applicable to new Citi Credit Card or Citibank Ready Credit account holders only. OCBC's ExtraCash Personal Loan 5.42% (EIR 10.96%) For income $20K – $30K p.a.: $100. For income above $30K p.a. : $200 or 2% of the approved loan amount, whichever is higher $323 – Singaporean/PR above 21 years old: $20,000 – Foreigner above 21 years old: $45,000 2. Hold up. What do interest rate, EIR and processing fees mean? There's quite a bit of jargon here, so let's go through some points of confusion that may be swimming around in your head. Interest rates Notice that interest rates are quoted as 'from X%' instead of being stated simply as 'X%'? That's because personal loans are pretty dynamic as they all depend on factors such as your credit history and the loan amount. EIR EIR stands for Effective Interest Rate . Taking into consideration other fees (like processing fee; see next point) and the loan repayment schedule, it is a more accurate reflection of the cost of borrowing than the advertised interest rates. Processing fees This is the main hidden cost of personal loans and is worth highlighting. The processing fee is deducted from the principal — meaning, for a $10,000 loan with a $100 (or 1%) processing fee, you get only $9,900 in cash. As a borrower, you might not 'feel' it, but it does eat into your funds and increase the cost of borrowing. Now, let's walk through the nine featured personal loan packages. 3. DBS/POSB personal loan The DBS/POSB personal loan is only open to existing DBS/POSB customers. If you already have (1) a DBS/POSB Cashline account or have a DBS/POSB credit card and (2) credit your salary into a DBS or POSB deposit account, you can get the cash disbursed instantly. The loan is open to Singaporeans and PRs, as well as foreigners with DBS/POSB Cashline or credit card accounts. You must be aged 21 to 70 years with a minimum annual income of $20,000 — this opens up DBS/POSB personal loans to include slightly older groups of people and lower income earners compared to other banks. Like the Standard Chartered CashOne loan, you don't need to earn a regular salary to be eligible for this loan. Self-employed individuals and commission earners can also apply. DBS's personal loan promises interest rates as low as 1.99 per cent. There is a processing fee of one per cent, bringing the lowest possible EIR to 4.17 per cent. Loan tenures of six months to five years are available. Do note that these are the lowest possible rates and the actual interest rate depends on what DBS is prepared to extend to you. Note that there's also a three per cent unlimited cashback deal if you apply now. 4. Trust Instant Loan (Trust personal loan) When they say "instant", they mean it. Trust's personal loan, called Trust Instant Loan, disburses cash to you in just 60 seconds with the Trust credit card. This is how it works: You have a Trust credit card with a certain available credit balance at any one point in time. The Trust Instant Loan converts a portion of that balance into cash for you. Spend that cash on anything you want! The Trust Instant Loan is open to all Trust customers. Given how it works, as I just explained above, you do need to have a Trust credit card to be eligible. But this isn't a bad thing — for one thing, it makes repaying the loan seamless. Each month, you'll see your loan instalment charged to your credit card bill. To pay the instalment, simply pay through your credit card statement via your Trust App. From now till June 15, the Trust Instant Loan is also extra affordable with an interest rate starting from just 2.22 per cent p.a. (EIR from 4.22 per cent p.a.) — down 0.27 per cent. They also charge no processing fees, annual fees, or the like. However, there is a 3 per cent early repayment fee on your remaining loan amount if you repay the rest of your loan early. The Trust Instant Loan is open to Singapore Citizens, PRs, and Foreigners aged 21 to 65 years old. You could be a salaried worker, commission-based, or self-employed as long as your annual income is $30,000 for Singaporeans or $60,000 for Foreigners. 5. CIMB personal loan The CIMB Personal Loan is another personal loan that comes with no processing fees. Its interest rate comes in at 2.68 per cent p.a. (EIR 5.06 per cent p.a.), making it the next lowest after Trust. You also get flexible loan tenure options of 12, 24, 36, 48 or 60 months. On top of low interest rates, CIMB is also offering a cashback promotion to sweeten the deal. The cashback you'll earn offsets some of the interest you'll be charged, up to a maximum of $2,800 cashback. Tenure Approved Loan Amount Cashback Earned 1 or 2 years Any amount No cashback 3, 4 or 5 years <$10,000 $10,000 – < $15,000 $50 $15,000 – < $30,000 $300 $30,000 – < $50,000 $600 $50,000 – < $80,000 $750 $80,000 – < $150,000 $1,000 $150,000 – < $190,000 $2,000 > = $190,000 $2,800 As far as eligibility goes, the CIMB Personal Loan is fairly standard. It's open to Singapore Citizens and Singapore PRs with a minimum annual income of $20,000, and to Malaysians earning at least $30,000 a year. You'll also need to be 21 to 70 years old — that maximum age sits between the Citibank and DBS personal loan age limit. There's no prerequisite to have a CIMB Bank Account or CIMB credit card before you apply, so go ahead as long as you meet the criteria above. Like any personal loan, you'll incur a penalty fee if you try to repay it early. For the CIMB Personal Loan, this fee is three per cent of the outstanding loan amount or $250, whichever is higher. 5. UOB Personal Loan UOB's personal loan is only open to existing UOB credit cardholders or CashPlus customers who are Singaporeans, PRs aged 21 to 65. You'll also need to be a salaried worker earning at least $30,000 a year. Not an existing UOB customer? You'll have to get a UOB credit card or CashPlus to apply for a UOB Personal Loan. The interest rate is from 1.85 per cent p.a. for loan periods of 12, 24, 36, 48 or 60 months, with a 3.40 per cent p.a. EIR. While UOB used to only waive processing fees for loan periods 24 months and up, processing fees are now waived for all loan periods. If you're an existing UOB customer, you can get instant approval when you apply for your personal loan online. To further sweeten the deal, from now till July 31, 2025, you can get up to two per cent cash rebates for approved personal loans worth at least $15,000 with repayment period between of 3-5 years. 6. Standard Chartered CashOne Standard Chartered CashOne personal loan is open to Singapore Citizens, PRs and foreigners with a Singapore Employment Pass aged 21 and above. The barriers to entry for the Standard Chartered CashOne personal loan have gone up slightly. The minimum annual income requirements are now $30,000 for Singaporeans and PRs and $90,000 for foreigners. You also don't necessarily need to be a salaried worker to apply — Standard Chartered is cool with salaried employees, variable/commission-based employees, and even self-employed individuals. You can apply for this personal loan online by signing in through Singpass and receive your loan disbursement within 15 minutes — it's super easy. There's no need to be an existing Standard Chartered customer to get this personal loan. So, it's fast — but is it also affordable? Standard Chartered charges an initial annual fee of $199 (deducted from your approved loan) for any loan tenure between one to five years. From the second year onwards, you won't have to pay any more annual fees — unless you miss any instalments, in which case you will pay $50 in annual fees for that year. Plus the late payment fee of $100. If you pay your full monthly instalment on time for the first six months, you won't have to worry about late penalties. After that, you'll have the flexibility to pay just the minimum — whichever is lower: $50 or one per cent of your approved monthly principal. So taking the $199 annual fee into consideration, I'd say CashOne is more worthwhile if you're taking out a big loan. Interest rates are advertised as starting from 1.90 per cent, working out to an EIR of 3.63 per cent and above. In reality, interest rates are personalised, so yours might differ from this example. Take up this loan now and you'll also stand a chance to win in Standard Chartered's exciting giveaway — featuring prizes like a getaway for two to Paris and sleek Samsonite luggage. 7. HSBC personal loan HSBC's personal loan is open to Singaporeans and PRs aged 21 to 65 years old with an annual income of $30,000 and above for salaried workers, and $40,000 for self-employed or commission-based workers. Foreigners must earn at least $60,000 a year and have an employment pass with at least six months' validity. The best part about HSBC's personal loan is its long loan tenure of up to seven years — currently the longest loan tenure in Singapore. So if you need to borrow a large sum but can't afford high monthly repayments, HSBC's personal loan is definitely one you should consider. HSBC has dropped their promotional interest rates even further now starting from 2.20 per cent p.a. with an EIR from 4.00 per cent p.a. with no processing fees. Remember, however, that actual interest rates will vary from person to person. Another factor to consider is that HSBC's personal loan comes with an annual fee of $120, and only the first year's fee is waived. Don't miss your payments, or you'll be subject to a $120 late payment fee. 8. GXS FlexiLoan GXS is a digital bank that's 60 per cent owned by Grab and 40 per cent owned by Singtel. Now, don't be dissuaded by the idea of a digital bank. Like any regular bank, GXS offers customers a personal loan-and a pretty good one at that. With a loan tenure between two and 60 months, GXS FlexiLoan interest rates start from 2.88 per cent p.a., with an EIR of 5.45 per cent p.a.. However, up till July 31, 2025, you could enjoy one per cent OFF your Interest Rate (awarded in the form of cashback) when you apply for a $10,000 loan with 12 month tenure with the code "MSDEAL". On top of that, GXS FlexiLoan doesn't charge any annual, processing, early repayment or late fees — something almost unheard of when it comes to loans from your traditional banks. You heard that right, repay your loan early with no extra charges! However, GXS will charge you late interest if your repayments are late, so you won't get off scot-free. One downside to the GXS FlexiLoan is that foreigners aren't eligible. It's only for Singapore Citizens and Singapore Permanent Residents between 21 and 65 years old. The minimum annual income is $20,000. 10. Citibank Quick Cash with Ready Credit (New Customers) I'm going to preface this by saying that the 3.45 per cent (EIR from 6.5 per cent) interest rate for the Citi Quick Cash personal loan is only available to customers who are completely new to Citibank loans. If you already have a Citibank loan, you'll be given a higher interest rate. The plus point for this one is definitely the ease of getting your funds. You'll be easily able to convert the credit balance on your Citi Credit Card or Citibank Ready Credit account into cash. Just log into the Citi Mobile App, key in the amount of cash you need and you can get the funds pretty much instantly. Citi Quick Cash is open to Singapore Citizens and PRs (salaried or self-employed) with a minimum annual income of $30,000, and foreigners with an annual income of at least $42,000. The eligible age range is 21 to 65 years. With Citibank's Quick Cash personal loan, you can choose a tenure of 12, 24, 36, 48, or 60 months-all with zero processing fees. You'll get a 3.56 per cent interest rate on Citibank's personal loan with a shorter 1-year tenure, or 3.45 per cent if you intend to extend your loan repayment to three years. While the interest rates differ according to tenure period, you'll get an EIR of 6.5 per cent for all. That said, don't take our word for it. Rates are customised, so what you get might not be exactly the same as the above screenshot. 11. OCBC ExtraCash personal loan While the OCBC ExtraCash Personal Loan has the highest interest rates (from 5.42 per cent p.a. / EIR from 10.96 per cent p.a.) on this list, it does come with some perks that might make it a solid choice for some. If you need a large loan, you can borrow up to six times your monthly income, with fixed repayments spread over 12 to 60 months. Like many of the other loans mentioned, it offers fast disbursement when you sign up via Myinfo. Plus, it has a relatively low entry requirement — just $20,000 in annual income for Singaporeans and PRs. You'll also be able to easily see a full breakdown of all your outstanding payments via internet banking. However, punctual repayments are a must. A late payment will set you back $80, and if you decide to restructure or repay early, you'll be charged a three per cent fee on your outstanding balance. So, be sure of your loan tenure before committing! 12. Which personal loan should you choose? Cheapest personal loans – Standard Chartered CashOne personal loan – Trust Instant Loan – DBS or POSB Personal Loans – UOB Personal Loan Personal loans with fastest disbursement – Trust Instant Loan – GXS FlexiLoan – CIMB Personal Loan – HSBC personal loan Personal loan with longest repayment tenure – HSBC personal loan Personal loans to consider if you want to take a huge amount – Standard Chartered CashOne personal loan – OCBC ExtraCash Personal Loan Whatever personal loan package you choose, opt for the smallest loan amount and shortest term you can comfortably manage. This will keep your interest payments to a minimum. Remember that the actual interest rate a bank offers you will depend on factors like your credit history, how much you want to borrow and for how long. So if you don't get offered the lowest advertised interest rates with one bank, you might want to compare that with what the other banks are willing to offer you. There are certain groups of individuals that may have a harder time taking out a personal loan. Older individuals: If you're above 65 years old, DBS/POSB and CIMB will let you apply for personal loans up to the age of 70 years. Those earning an annual income below $30,000: Most of the loans I've listed above have a minimum requirement of about $20,000 annual income, so you have plenty of options if this pertains to you. Commission-based workers or self-employed individuals: Citibank Quick Cash, HSBC Personal Loan, DBS Personal Loan and Standard Chartered CashOne are good options. Some other banks may only accept salaried workers. 13. Term loan vs credit line - which should you choose? While researching personal loans, you might have come across many different loan types, some of which do not seem to fit what we described above. We usually recommend these loans because they have much lower interest rates. You can pay back slowly and steadily at a pace comfortable to your financial situation. Many banks also offer a personal line of credit — sometimes called a credit line, revolving loan, or even "flexible repayment loan". This is a pre-approved amount of money you can cash out in part or whole, but you need to repay it ASAP or else face sky-high interest rates. Don't fall for it unless you're absolutely confident you can pay the money back immediately. These days, most banks base their personal loans on either your personal line of credit or credit card limit. So you will need either a credit card or credit line to get the loan. However, it is still considered a term loan if it comes with a structured repayment plan. But before you sign up, understand that your credit cards with this bank will be as good as dead because you'll have effectively "spent" your credit on a cash loan. 14. Being in debt is not fun… But it can be prevented. If you must take out a loan, channel all your energies into paying it off on time to avoid late charges. In the meantime, re-examine your income and budget, making a note of everything you spend on, so you won't have to resort to loans again. Ideally, you should draw up a budget that gives you enough leeway to set aside some cash for the future without starving to death. You should also build up an emergency fund worth a few months' expenses. If you're hit with unforeseen circumstances, you can dip into this fund instead of having to take a loan. It's also a good idea to know what types of insurance you need. We recommend hospitalisation insurance at a bare minimum, and life insurance if you have dependents. Being sufficiently insured ensures that you don't get hit with huge bills if the unexpected happens. [[nid:719513]] This article was first published in MoneySmart .
