Understanding Loans

Learn about different types of loans, their features and associated costs. This will help you make better loan choices.
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9,704 students
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Understand various types of loans, their features and associated costs.
Better manage spending and debt.


  • Internet access
  • Computer of Smart Phone
  • Basic knowledge of spreadsheets
  • Details of your own personal loans


Many people borrow money at certain points in their lives, usually when their savings are not enough to pay for “big-ticket” items such as a HDB flat or a car. In such cases, borrowing money to buy important items like a home may be necessary.

Borrowing is also a major responsibility as too much debt can easily get us in trouble. The number of persons seeking counselling for debt issues is already increasing every year, and credit card debt in Singapore is one of the fastest growing forms of debt which has grown at an average rate of 11.5% a year (Credit Bureau Report 2011).

We will first look at reasons why people borrow money. Then, we will consider various types of loans, their features and associated costs.

Learn about:

  • Secured Loans
  • Unsecured Loans
  • Term Loans
  • Revolving Credit

There are also several Excel demonstrations on the calculation of interest rates for the various types of loans.

Learn about these various types of loans in order to better manage your spending and debt.

We will cover some broad categories of loans namely term and revolving credit. We will also study how to derive the actual interest payable mathematically. This will help us choose the type of loans suitable for our needs.

Do get your own personal loan details ready.

Who this course is for:

  • working adults
  • students
  • anyone interested in the topic of loans and personal finance

Course content

5 sections24 lectures58m total length
  • Understanding Loans Introduction
  • MoneySENSE Core Financial Capabilities Framework
  • Why Do People Borrow?
  • Notes: Why Do People Borrow?


Financial Literacy Trainer
Peggy Chan
  • 4.4 Instructor Rating
  • 7,700 Reviews
  • 99,972 Students
  • 14 Courses

Peggy Chan, Financial Literacy Trainer, Institute for Financial Literacy


Peggy has 8 years of experience in the financial services industry, helping clients understand their financial needs, objectives and risk tolerance as well as reviewing company policies and procedures to ensure compliance. She was also an adjunct lecturer with a Polytechnic, teaching insurance and retirement planning subjects.

Prior to joining the financial services sector, Peggy was working in the information technology sector for 13 years, first in a government agency and subsequently served as a Senior Systems Analyst in an international bank.

She is a Certified Financial Planner, which is a professional certification specific to retirement planning and wealth accumulation in addition to overall financial planning.

Peggy has a Masters of Science, majoring in Network Management. She also holds other industry certification in M5, M8, M8A, M9 and HI.

Unbiased Financial Education Courses
Institute for Financial Literacy
  • 4.4 Instructor Rating
  • 12,191 Reviews
  • 139,220 Students
  • 26 Courses

  The Institute for Financial Literacy is a collaboration between MoneySense and Singapore Polytechnic Enterprise. 

    Our financial education courses cover basic money management, financial planning and investment know-how.