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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  • Lectures 24
  • Length 1 hour
  • Skill Level All Levels
  • Languages English
  • Includes Lifetime access
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    Available on iOS and Android
    Certificate of Completion
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About This Course

Published 7/2013 English

Course Description

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.

What are the requirements?

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

What am I going to get from this course?

  • Understand various types of loans, their features and associated costs.
  • Better manage spending and debt.

Who is the target audience?

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

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.


Section 1: Introduction

This is an introduction to this e-learning module on Understanding Loans.
Objectives covered are:
  • Types of Loans
  • Features Of/Costs Involved For Each Type Of Loan(s)
  • How Much Debt Can You Afford?

Instructor's Profile

Felicia Yeo

BBusiness, Certified Financial Planner, Dip Physical Education

Felicia has more than 14 years of experience in the financial services industry. She has helped several hundreds of consumers to develop a systematic approach to achieve their life goals and financial independence.

Felicia has a Bachelor of Business, majoring in Economics and Financial Management. She also holds other industry certification in AWP, M5, M9, M9A, HI and CGI.

Felicia has achieved the Certified Financial Planner certification in 2002, the hallmark of professional competence and ethical standards in financial planning. She has also conducted several talks in Cash Management in schools as a volunteer speaker with MoneySENSE.

Felicia is also very passionate in sports, education and training and enjoyed working with youths. Prior to joining the financial services sector, she was teaching with Ministry of Education and later worked in a Polytechnic as a Student Development Officer, equipping student leaders with the skills and knowledge in event management, leadership, budgeting and management of funds.

In this Lecture, find out more about MoneySENSE's core financial capabilities:

  • Understanding Money
  • Understanding yourself, your rights and responsibilities
  • Managing everyday money
  • Planning ahead
  • Selecting financial products

This lecture explains why people borrow in the first place.

In this lecture, we provide notes on why people borrow. Try to come up with some of your reasons on why people borrow money as well.

Section 2: Understanding Loans
In this lecture, different types of loans are explained - secured and unsecured, term loans and revolving credit loans.
In this lecture, we provide notes of different types of loans.
In this lecture the features of terms loans are discussed.
In this lecture, find out more about Term Loans Interest.

Find out more about Flat Rate Discount and Fixed Principal Repayment.


Find out about the fees and charges for Term Loans.

In this lecture, we provide notes regarding Term Loans.

Find out more about the features of Revolving Credit.

In this lecture, we provide notes on Modes of Repayment and the Features of Revolving Credit.
2 pages

In this lecture, we provide some slides on Effective Interest Rates.

Section 3: Excel Demonstrations

This is an Excel demonstration of how loan repayments are made using flat rate interest.

This is an Excel demonstration of how loans are re-payed using the Flat Rate Discount method.

This is an Excel demonstration of the Fixed Principal Repayment method for loans.

In this Excel Demo, we will be calculating the Effective Interest Rate for all three methods of interest calculation. The Excel file can be downloaded from http://www.ipto.gov.sg/content/dam/minlaw/ipto/Moneylenders/EIR%20Calculator.xls
Section 4: Credit Card Interest
This is a Case Study on how credit card interest is calculated on a daily basis.
In this lecture, we look at the Rule of 72 and use this rule to calculate how long it would take for Ms Ong's debt to double in amount.
In this lecture, we look at what would happen if Ms Ong were to just pay the minumum sum on her credit card loan.

This lecture explains how to use Credit Cards wisely.

Section 5: Conclusion
In this lecture, we conclude this e-learning module on Understanding Loans.
5 questions

Let's see how much you know about loans!

This lecture contains links to additional resources where you can learn more about money matters pertaining specially to Singaporeans.

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Instructor Biography

Peggy Chan, Financial Literacy Trainer

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.

Instructor Biography

Institute for Financial Literacy, Unbiased Financial Education Courses

The MoneySENSE-Singapore Polytechnic Institute for Financial Literacy is a collaboration between MoneySENSE, the national financial education programme in Singapore and Singapore Polytechnic.

MoneySENSE is spearheaded by the public-sector Financial Education Steering Committee which comprises representatives from the Ministry of Health, Ministry of Social and Family Development, Ministry of Education, Ministry of Manpower, Central Provident Fund Board, Monetary Authority of Singapore, National Library Board and People’s Association.

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

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