thucdangvan020999/asr_dataset2 · Datasets at Hugging Face

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audio_chunks/XTSexe4zuN0/XTSexe4zuN0_0.wav	Welcome to CNA's Money Talks podcast. I'm Andrea Heng. Thank you for joining me. Now, we tend to have a lot of milestones in life. Big events, right? Marriage, a new home.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_1.wav	the studies you need funds for these and we may not always have the money for these occasions right now we want to talk about loans because these are the things that will	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_2.wav	help you get that money. And before you take up a loan, there are quite a number of things that we need to consider. And it's overwhelming, especially if this is your first	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_3.wav	So let's enlist the help of our Money Talks guest today. She is Jen Ong, Head of Retail at GXS Bank. Jen, good to see you.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_4.wav	to have you with us. Thank you for having us. We all have to take up loans, right? So what are the key items in a person's life cycle when a loan is a must have?	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_5.wav	And I think one of the biggest one that we have seen is renovation, right? If you talk about marriage loan or wedding loan, yes, you see people taking it, but most of the use cases,	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_6.wav	cases that we see are renovation loans because renovation can get big. Now when we think about loans, there's always this taboo about taking loans. Yeah. Taking loans is sometimes you do need it.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_7.wav	So putting the taboo aside, now you think about loans, you would think about interest rate.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_8.wav	I think a lot of consumers out there say which one gives me the best interest rate and they make a decision based on that. That is not wrong.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_9.wav	Okay, but then you need to go into the nitty-gritty you need to understand is there any fees if I pay off early	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_10.wav	See, that's a big topic, right? How is interest calculated? Everybody will tell you interest is interest. But no, if your interest is monthly rest or daily rest, it becomes a different cause for the...	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_11.wav	So if let's say I have more money this time around, I want to pay off a little bit earlier, will I be penalized? And if you look at what is happening in the market, there are fees like this.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_12.wav	yes so fees that you will be penalized if you pay early then that goes against the grain of taking a loan and being careful because if you have money to pay off a loan you want to pay off a loan without	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_13.wav	So that's why you have to check the TNCs, know what you're getting into. Okay. And we will get into the nitty gritty, but just want to tackle the philosophical side of things first.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_14.wav	How do I know what's a reasonable expense to take up a loan for? So you mentioned things like wedding loans, reno loans. These are the more common ones.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_15.wav	When do I know that taking a loan is a good versus a bad idea?	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_16.wav	You think about the opportunity cost then, right? I'll give you an example, broken kitchen sink. You need to fix it. Now, are you saying that...	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_17.wav	Oh, I don't have the money. I don't have the means. Therefore I'm going to live with the broken sink. No. So you have to take a loan because the other alternative is just not possible. So that there are areas that you have to think.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_18.wav	Like I said, taking a loan is on the surface sounds like a taboo, but if you think about it, housing loan. Yeah.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_19.wav	Everybody takes a housing loan. It's almost necessary. Correct. So housing loan is their car loan. People take a car loan. So these are all utilitarian.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_20.wav	So to me, I have always tell people, if you need to take a loan, be careful. What is the cost of servicing the loan? Right. That's where you need to remember. Okay. Taking a loan is something that is something that you have to do.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_21.wav	then make sure that you can afford it. One of the biggest things to think about when taking a loan is the ability to pay back.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_22.wav	That's right. So I can take a loan and don't pay back and I'll be in trouble. Oh, yes. Now I can take a loan and stretch it too short. I will not have the ability to pay back because my disposable income.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_23.wav	your income you need to calculate what is available after your you put aside for all the necessities then check out what is a repayment capability okay if you want to	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_24.wav	pay off in 12 months, make sure you can. If you can't, you may have to stretch it a little bit more to 18 months.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_25.wav	Now, when I'm shopping around for a loan, how do I make comparisons? What are the top three things, say, that I need to compare in order to decide what's the best?	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_26.wav	kind of loan that works for me yeah so the first thing you want to look at is the interest rate now we talk about interest rate you need to know whether	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_27.wav	It is, like I mentioned, a monthly res or a daily res. What's a res? The way interest is calculated. Right. Right. So if let's say when we talk about monthly res is.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_28.wav	and I made an early repayment of 7,000. So my calculation should be based on the difference of 3,000. But if you're on a monthly rest, it doesn't happen. They will just look at what is your	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_29.wav	end month. What is your previous end month and interest is calculated. So it's a bit different. The other one would be fees. Is there a processing fee? You will hear.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_30.wav	very low interest but then there's processing fee and then you hear there's penalty fee so so those are the things that you as a consumer you need to take a look	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_31.wav	is there a loan that has no penalty for it paying early because i've taken up a loan before and i you know i had the same mindset as everyone else i want to pay it off early so that	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_32.wav	It's not a burden on my shoulders, not, you know, hanging around in my head all the time. But then there's a penalty that you have to pay because you're paying early. I don't.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_33.wav	Understand that can you explain this to me money comes at a cost whether you're a borrower whether you're a lender Right now, I think there is a penalty fee because that money is set aside for	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_34.wav	for you, for consumers to use it. So there is a timeline to it that this person, for example, needs it for 12 months. So, so I can't use that money for something else because I'm lending it to this.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_35.wav	person right so so in most financial institution correct so there's this penalty right so so if you return it to me what am I gonna do with it so there's a penalty now back to your	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_36.wav	question. Is there a loan that has no penalty fee? Yes! GXS Plexi loan has no penalty fee. Why is that?	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_37.wav	Because when we designed a product, we took into account consumer's lifestyle. I am a consumer myself. I have gone through different.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_38.wav	stages where I needed a loan so I've been through that and I understand that now if we really want to serve the consumers then take away the unnecessary stuff but won't that come at a cost	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_39.wav	Yeah, so that's a good question, right? So we're not saying that we are doing our charity. We're saying that we may earn less, but we have customer loyalty. I will have to say that's quite...	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_40.wav	quite a big gamble, I will have to say. It's a big gamble. The thing is not everyone can take up a loan, right? It depends on various, I suppose.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_41.wav	factors on the applicants part I understand banks actually take a look at your credit score and I know from personal experience that you don't have credit it's not necessarily a good thing	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_42.wav	So why does our credit score matter so much when applying for a loan? Because that's the only way for organisations to determine P&P.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_43.wav	but you want to make sure that the person you lend money to is able to pay you back. It works both ways, right? It's good for the consumers. I think fundamentally a lot of consumers out there do not	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_44.wav	put a lot of thinking into credit bureau score they don't know that it is them yeah it's only when you're applying for a loan and then when they talk to the officer then we realize there's something called a	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_45.wav	credit bureau score so we want to educate consumers to say that right now me we are young at 2025 you know you you go take a credit card forget to pay a bill you	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_46.wav	nothing of it but if you continue to forget to pay a bill 10 years later when you want a housing loan your credit score is pretty ugly yeah that's where the challenge is right	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_47.wav	So for us, I think it's important, consumers out there, it's important to cultivate good payment behavior. Yes. So at GXS, if we give you a loan, we will also nudge you to pay your loan. And we'll tell you, hey,	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_48.wav	Do not forget, hey, do you know that if you don't do it correctly, you may have to have a poor credit score three years down the track. What we also tend to forget is the repercussions, like you said.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_49.wav	later on you may forget it now and you may think nothing of it now and then when you pay it off it's fine i've paid it off whatever but people often forget that there are long-term repercussions	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_50.wav	Correct. Correct. Now, what do we need to think about when we have to take on multiple loans at a time? So I'm thinking a study loan.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_51.wav	at the same time as a mortgage. And I've been through that before. I had to pay off a mortgage while studying. The renovation loan as well. That was very painful. Three bills in a row.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_52.wav	so what do we need to think about here i think the most important thing is the ability to repay your loan on a monthly basis right so calculate what is known as your	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_53.wav	debt servicing ratio yes just calculate it right if you earn x dollar	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_54.wav	dollar to pay off do you have enough money to eat and sleep and you know buy your groceries I think calculation is very important	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_55.wav	think about ability to pay now if you are really stuck then maybe prioritize okay what is more important I mean to my my housing loan is important student loan is important	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_56.wav	Renault, maybe push it out for six months. But really think about your financial health before you overlive it. So I think what you're trying to say here is think about it from a budgeting perspective.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_57.wav	right really sit down draw your budget see what you are left with after all your regular expenses and look at that final figure and say hey	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_58.wav	can I manage this every month or not yes okay and there are solutions to mitigate any of this if we feel like we can't pay a certain	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_59.wav	Yeah. So, so you're saying that I take it that you are a person has already taken a loan and now has a problem to say that, you know what? I took a loan. I can't correct. Yeah. So, so there's always, you can.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_60.wav	always restructure your loan yes you can always restructure and banks are pretty open to that right yes okay uh let's talk about interest rate something that is on everyone's minds ever since	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_61.wav	pandemic and now it's a big deal because everyone's watching what's happening in the U.S. We are also watching what's happening in Singapore as well. Some people choose to max	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_62.wav	out their loans because the interest is lower time and then they can use whatever cash extra that they have to invest on other things which	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_63.wav	give them higher returns is this necessarily advisable in your opinion really depend on the returns that you expect to get okay right is it short term	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_64.wav	When you look at a loan and say that the interest rate is low, you have to understand the interest rate is low because I'm taking a short-term loan or am I taking a long-term loan, right?	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_65.wav	So if it's a long-term loan, it adds up. But investment, if you're using it to really, if the market rally and you really want to be opportunistic, to my mind, those are short-term.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_66.wav	So don't get locked in. So like I said, take a loan, lock in when there's a penalty. You make something on the side and you think that you have made money. Then when you want to pay off the loan, you realize that, oops.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_67.wav	then it just negates the whole proposition that you have in mind. So I think it's very important to look at it. If I'm borrowing short term really, indeed, is it really short?	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_68.wav	customers just need to understand what's the outlay yeah okay I think that's a very good piece of advice there I want to stay on this topic a little bit longer interest rates have come down lots of people	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_69.wav	are starting to review their mortgages uh is it easy to get a refinance on all kinds of loans i mean what are the things that we need to look out for i think if it comes	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_70.wav	to refinancing your mortgage is the one that you can get it pretty easily okay i mean to be fair mortgage is a long-term loan 25 to 30 years right so it might	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_71.wav	interest market and also, yes, I think banks are very open to refinancing.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_72.wav	after all a secured loan yes at the end of it that mortgage is a secured loan but I can't say that for unsecured loans right so in a way you won't take	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_73.wav	it for more than two years you will take a short-term loan maybe 18 months is what you will go in terms of banks are they really you know helping the consumers because interest interest rate	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_74.wav	has dropped, is the rate also dropping correspondingly? And I think to be fair, Singapore banks have been doing that.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_75.wav	They are not getting, you know, played. But like I said, read the terms and conditions, right? If the headline rate sounds good, just read the terms and conditions. That's my advice. Okay.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_76.wav	about some people taking short-term loans right because they want to take advantage of lower rates for example and some people want to do this in order to pay off certain expenses maybe	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_77.wav	less important, less heavy expenses that may not be as big as a mortgage loan, for example, right? That's just one reason. Is there such a thing as a good time?	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_78.wav	or a good occasion to take a loan. So I'm asking about the timing here. No, I don't because to my mind loans, if you think about unsecured, it's still needs-based.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_79.wav	it is a needs based loan okay so you have to have a need you take a loan it's no point taking a loan in anticipation of a need because once you take a loan you're already paying interest	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_80.wav	If you are in a situation like this, it's better to have a standby line. So don't think of it as a loan that you have drawn down. Get a standby line.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_81.wav	So that if you want to draw it now, in the next minute, you already have access to it rather than to apply it when you need it. So I think maybe to answer your questions, always have a standby line.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_82.wav	that is already there available for you that you can draw down. I think that's really sound advice for sure along with everything else that you've said and I only wish I had this advice.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_83.wav	maybe 10, 15 years ago. But Jen, you know what? Nonetheless, this has been informative. Thanks very much for coming down to the Money Talks podcast. Thank you. Thank you for your time.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_84.wav	Now, listener, if you've got any comments or feedback or questions even, you can always leave us a message. You know where to reach us. Money Talks is available on Apple Podcasts, Spotify,	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_85.wav	as well as YouTube Music. Do leave us a rating. We look out for those sometimes. Credits to the team as well. Crispina Robert, Tiffany Ang, Dunaini Johari.	Singlish	nan	nan	nan	nan
audio_chunks/XTSexe4zuN0/XTSexe4zuN0_86.wav	Joanne Chan, Hanida Amin, Arjun Bala and Mohammed bin Jafar. I am Andrea Heng for the Money Talks Podcast. We'll catch you at the next one.	Singlish	nan	nan	nan	nan

audio_chunks/XTSexe4zuN0/XTSexe4zuN0_0.wav

Welcome to CNA's Money Talks podcast. I'm Andrea Heng. Thank you for joining me. Now, we tend to have a lot of milestones in life. Big events, right? Marriage, a new home.

Singlish

nan

audio_chunks/XTSexe4zuN0/XTSexe4zuN0_1.wav

the studies you need funds for these and we may not always have the money for these occasions right now we want to talk about loans because these are the things that will

Singlish

nan

audio_chunks/XTSexe4zuN0/XTSexe4zuN0_2.wav

help you get that money. And before you take up a loan, there are quite a number of things that we need to consider. And it's overwhelming, especially if this is your first

Singlish

nan

audio_chunks/XTSexe4zuN0/XTSexe4zuN0_3.wav

So let's enlist the help of our Money Talks guest today. She is Jen Ong, Head of Retail at GXS Bank. Jen, good to see you.

Singlish

nan

audio_chunks/XTSexe4zuN0/XTSexe4zuN0_4.wav

to have you with us. Thank you for having us. We all have to take up loans, right? So what are the key items in a person's life cycle when a loan is a must have?

Singlish

nan

audio_chunks/XTSexe4zuN0/XTSexe4zuN0_5.wav

And I think one of the biggest one that we have seen is renovation, right? If you talk about marriage loan or wedding loan, yes, you see people taking it, but most of the use cases,

Singlish

nan

audio_chunks/XTSexe4zuN0/XTSexe4zuN0_6.wav

cases that we see are renovation loans because renovation can get big. Now when we think about loans, there's always this taboo about taking loans. Yeah. Taking loans is sometimes you do need it.

Singlish

nan

audio_chunks/XTSexe4zuN0/XTSexe4zuN0_7.wav

So putting the taboo aside, now you think about loans, you would think about interest rate.

Singlish

nan

audio_chunks/XTSexe4zuN0/XTSexe4zuN0_8.wav

I think a lot of consumers out there say which one gives me the best interest rate and they make a decision based on that. That is not wrong.

Singlish

nan

audio_chunks/XTSexe4zuN0/XTSexe4zuN0_9.wav

Okay, but then you need to go into the nitty-gritty you need to understand is there any fees if I pay off early

Singlish

nan

audio_chunks/XTSexe4zuN0/XTSexe4zuN0_10.wav

See, that's a big topic, right? How is interest calculated? Everybody will tell you interest is interest. But no, if your interest is monthly rest or daily rest, it becomes a different cause for the...

Singlish

nan

audio_chunks/XTSexe4zuN0/XTSexe4zuN0_11.wav

So if let's say I have more money this time around, I want to pay off a little bit earlier, will I be penalized? And if you look at what is happening in the market, there are fees like this.

Singlish

nan

audio_chunks/XTSexe4zuN0/XTSexe4zuN0_12.wav

yes so fees that you will be penalized if you pay early then that goes against the grain of taking a loan and being careful because if you have money to pay off a loan you want to pay off a loan without

Singlish

nan

audio_chunks/XTSexe4zuN0/XTSexe4zuN0_13.wav

So that's why you have to check the TNCs, know what you're getting into. Okay. And we will get into the nitty gritty, but just want to tackle the philosophical side of things first.

Singlish

nan

audio_chunks/XTSexe4zuN0/XTSexe4zuN0_14.wav

How do I know what's a reasonable expense to take up a loan for? So you mentioned things like wedding loans, reno loans. These are the more common ones.

Singlish

nan

audio_chunks/XTSexe4zuN0/XTSexe4zuN0_15.wav

When do I know that taking a loan is a good versus a bad idea?

Singlish

nan

audio_chunks/XTSexe4zuN0/XTSexe4zuN0_16.wav

You think about the opportunity cost then, right? I'll give you an example, broken kitchen sink. You need to fix it. Now, are you saying that...

Singlish

nan

audio_chunks/XTSexe4zuN0/XTSexe4zuN0_17.wav

Oh, I don't have the money. I don't have the means. Therefore I'm going to live with the broken sink. No. So you have to take a loan because the other alternative is just not possible. So that there are areas that you have to think.

Singlish

nan

audio_chunks/XTSexe4zuN0/XTSexe4zuN0_18.wav

Like I said, taking a loan is on the surface sounds like a taboo, but if you think about it, housing loan. Yeah.

Singlish

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Everybody takes a housing loan. It's almost necessary. Correct. So housing loan is their car loan. People take a car loan. So these are all utilitarian.

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So to me, I have always tell people, if you need to take a loan, be careful. What is the cost of servicing the loan? Right. That's where you need to remember. Okay. Taking a loan is something that is something that you have to do.

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then make sure that you can afford it. One of the biggest things to think about when taking a loan is the ability to pay back.

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nan

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That's right. So I can take a loan and don't pay back and I'll be in trouble. Oh, yes. Now I can take a loan and stretch it too short. I will not have the ability to pay back because my disposable income.

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your income you need to calculate what is available after your you put aside for all the necessities then check out what is a repayment capability okay if you want to

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pay off in 12 months, make sure you can. If you can't, you may have to stretch it a little bit more to 18 months.

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Now, when I'm shopping around for a loan, how do I make comparisons? What are the top three things, say, that I need to compare in order to decide what's the best?

Singlish

nan

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kind of loan that works for me yeah so the first thing you want to look at is the interest rate now we talk about interest rate you need to know whether

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It is, like I mentioned, a monthly res or a daily res. What's a res? The way interest is calculated. Right. Right. So if let's say when we talk about monthly res is.

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and I made an early repayment of 7,000. So my calculation should be based on the difference of 3,000. But if you're on a monthly rest, it doesn't happen. They will just look at what is your

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end month. What is your previous end month and interest is calculated. So it's a bit different. The other one would be fees. Is there a processing fee? You will hear.

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very low interest but then there's processing fee and then you hear there's penalty fee so so those are the things that you as a consumer you need to take a look

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nan

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is there a loan that has no penalty for it paying early because i've taken up a loan before and i you know i had the same mindset as everyone else i want to pay it off early so that

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It's not a burden on my shoulders, not, you know, hanging around in my head all the time. But then there's a penalty that you have to pay because you're paying early. I don't.

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Understand that can you explain this to me money comes at a cost whether you're a borrower whether you're a lender Right now, I think there is a penalty fee because that money is set aside for

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for you, for consumers to use it. So there is a timeline to it that this person, for example, needs it for 12 months. So, so I can't use that money for something else because I'm lending it to this.

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person right so so in most financial institution correct so there's this penalty right so so if you return it to me what am I gonna do with it so there's a penalty now back to your

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question. Is there a loan that has no penalty fee? Yes! GXS Plexi loan has no penalty fee. Why is that?

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Because when we designed a product, we took into account consumer's lifestyle. I am a consumer myself. I have gone through different.

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stages where I needed a loan so I've been through that and I understand that now if we really want to serve the consumers then take away the unnecessary stuff but won't that come at a cost

Singlish

nan

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Yeah, so that's a good question, right? So we're not saying that we are doing our charity. We're saying that we may earn less, but we have customer loyalty. I will have to say that's quite...

Singlish

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quite a big gamble, I will have to say. It's a big gamble. The thing is not everyone can take up a loan, right? It depends on various, I suppose.

Singlish

nan

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factors on the applicants part I understand banks actually take a look at your credit score and I know from personal experience that you don't have credit it's not necessarily a good thing

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So why does our credit score matter so much when applying for a loan? Because that's the only way for organisations to determine P&P.

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but you want to make sure that the person you lend money to is able to pay you back. It works both ways, right? It's good for the consumers. I think fundamentally a lot of consumers out there do not

Singlish

nan

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put a lot of thinking into credit bureau score they don't know that it is them yeah it's only when you're applying for a loan and then when they talk to the officer then we realize there's something called a

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credit bureau score so we want to educate consumers to say that right now me we are young at 2025 you know you you go take a credit card forget to pay a bill you

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nothing of it but if you continue to forget to pay a bill 10 years later when you want a housing loan your credit score is pretty ugly yeah that's where the challenge is right

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So for us, I think it's important, consumers out there, it's important to cultivate good payment behavior. Yes. So at GXS, if we give you a loan, we will also nudge you to pay your loan. And we'll tell you, hey,

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Do not forget, hey, do you know that if you don't do it correctly, you may have to have a poor credit score three years down the track. What we also tend to forget is the repercussions, like you said.

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later on you may forget it now and you may think nothing of it now and then when you pay it off it's fine i've paid it off whatever but people often forget that there are long-term repercussions

Singlish

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Correct. Correct. Now, what do we need to think about when we have to take on multiple loans at a time? So I'm thinking a study loan.

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at the same time as a mortgage. And I've been through that before. I had to pay off a mortgage while studying. The renovation loan as well. That was very painful. Three bills in a row.

Singlish

nan

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so what do we need to think about here i think the most important thing is the ability to repay your loan on a monthly basis right so calculate what is known as your

Singlish

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debt servicing ratio yes just calculate it right if you earn x dollar

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dollar to pay off do you have enough money to eat and sleep and you know buy your groceries I think calculation is very important

Singlish

nan

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think about ability to pay now if you are really stuck then maybe prioritize okay what is more important I mean to my my housing loan is important student loan is important

Singlish

nan

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Renault, maybe push it out for six months. But really think about your financial health before you overlive it. So I think what you're trying to say here is think about it from a budgeting perspective.

Singlish

nan

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right really sit down draw your budget see what you are left with after all your regular expenses and look at that final figure and say hey

Singlish

nan

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can I manage this every month or not yes okay and there are solutions to mitigate any of this if we feel like we can't pay a certain

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Yeah. So, so you're saying that I take it that you are a person has already taken a loan and now has a problem to say that, you know what? I took a loan. I can't correct. Yeah. So, so there's always, you can.

Singlish

nan

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always restructure your loan yes you can always restructure and banks are pretty open to that right yes okay uh let's talk about interest rate something that is on everyone's minds ever since

Singlish

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pandemic and now it's a big deal because everyone's watching what's happening in the U.S. We are also watching what's happening in Singapore as well. Some people choose to max

Singlish

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out their loans because the interest is lower time and then they can use whatever cash extra that they have to invest on other things which

Singlish

nan

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give them higher returns is this necessarily advisable in your opinion really depend on the returns that you expect to get okay right is it short term

Singlish

nan

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When you look at a loan and say that the interest rate is low, you have to understand the interest rate is low because I'm taking a short-term loan or am I taking a long-term loan, right?

Singlish

nan

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So if it's a long-term loan, it adds up. But investment, if you're using it to really, if the market rally and you really want to be opportunistic, to my mind, those are short-term.

Singlish

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So don't get locked in. So like I said, take a loan, lock in when there's a penalty. You make something on the side and you think that you have made money. Then when you want to pay off the loan, you realize that, oops.

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then it just negates the whole proposition that you have in mind. So I think it's very important to look at it. If I'm borrowing short term really, indeed, is it really short?

Singlish

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customers just need to understand what's the outlay yeah okay I think that's a very good piece of advice there I want to stay on this topic a little bit longer interest rates have come down lots of people

Singlish

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are starting to review their mortgages uh is it easy to get a refinance on all kinds of loans i mean what are the things that we need to look out for i think if it comes

Singlish

nan

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to refinancing your mortgage is the one that you can get it pretty easily okay i mean to be fair mortgage is a long-term loan 25 to 30 years right so it might

Singlish

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interest market and also, yes, I think banks are very open to refinancing.

Singlish

nan

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after all a secured loan yes at the end of it that mortgage is a secured loan but I can't say that for unsecured loans right so in a way you won't take

Singlish

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it for more than two years you will take a short-term loan maybe 18 months is what you will go in terms of banks are they really you know helping the consumers because interest interest rate

Singlish

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has dropped, is the rate also dropping correspondingly? And I think to be fair, Singapore banks have been doing that.

Singlish

nan

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They are not getting, you know, played. But like I said, read the terms and conditions, right? If the headline rate sounds good, just read the terms and conditions. That's my advice. Okay.

Singlish

nan

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about some people taking short-term loans right because they want to take advantage of lower rates for example and some people want to do this in order to pay off certain expenses maybe

Singlish

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less important, less heavy expenses that may not be as big as a mortgage loan, for example, right? That's just one reason. Is there such a thing as a good time?

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or a good occasion to take a loan. So I'm asking about the timing here. No, I don't because to my mind loans, if you think about unsecured, it's still needs-based.

Singlish

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it is a needs based loan okay so you have to have a need you take a loan it's no point taking a loan in anticipation of a need because once you take a loan you're already paying interest

Singlish

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If you are in a situation like this, it's better to have a standby line. So don't think of it as a loan that you have drawn down. Get a standby line.

Singlish

nan

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So that if you want to draw it now, in the next minute, you already have access to it rather than to apply it when you need it. So I think maybe to answer your questions, always have a standby line.

Singlish

nan

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that is already there available for you that you can draw down. I think that's really sound advice for sure along with everything else that you've said and I only wish I had this advice.

Singlish

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maybe 10, 15 years ago. But Jen, you know what? Nonetheless, this has been informative. Thanks very much for coming down to the Money Talks podcast. Thank you. Thank you for your time.

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Now, listener, if you've got any comments or feedback or questions even, you can always leave us a message. You know where to reach us. Money Talks is available on Apple Podcasts, Spotify,

Singlish

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as well as YouTube Music. Do leave us a rating. We look out for those sometimes. Credits to the team as well. Crispina Robert, Tiffany Ang, Dunaini Johari.

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Joanne Chan, Hanida Amin, Arjun Bala and Mohammed bin Jafar. I am Andrea Heng for the Money Talks Podcast. We'll catch you at the next one.

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