Interest rate is no longer the only consideration for those applying for personal loans, if the results of a recent survey by GE Money of 356 Singapore-based consumers is any indication.

Instead, almost 95 per cent of those surveyed said that, when applying for a loan, flexibility of repayment was an important or very important consideration.

GE Money launches enhanced personal loan scheme James, a personal loans scheme, was launched in 2006. GE Money has now introduced an enhanced version. The unveiling of the new James at Raffles Place. -Photo: GE Money Sinagpore Mr Kumar said this reflected "GE Money's commitment to meeting consumers' changing needs by giving them the freedom to control their finances". New features include the following: Last instalment waiver The customers' last instalment is waived if all monthly instalments are made promptly. Pay interest only Customers pay interest only in the first two months of their loan. Payment holiday This feature gives customers the flexibility to defer up to two monthly payments a year. Step up or step down interest rate Customers can tailor their instalment repayment amount with a lower interest rate at the start or at the end of the loan without affecting the effective interest rate at the point of application. Existing features, such as a range of loan tenures and repayment due dates, are now complemented by these new options. Interest rate charged is between 12.88 per cent and 16.88 per cent a year. Describing James, Mr Kumar said that it "is a simple, consumer value-driven proposition". He added: "We look to help customers deal better with changing life situations and to meet their goals by bringing financial flexibility along with our responsible lending standards with the new and enhanced James."

In addition, 43 per cent preferred flexibility at the start of a loan while a similar percentage wanted the flexibility to deal with unexpected events during the term of the loan.

Commenting on current personal loans offered by industry, one in five also said that they found these too restrictive.

Mr Alok Kumar, Chief Marketing Officer of GE Money Singapore, said: "Today, consumers want a loan that best represents their lifestyle."

What customers use their loans for

In the survey, more than 6 in 10 consumers also mentioned that they had become more careful when considering a loan because of current economic developments.

Over 60 per cent said they would take or took loans to help pay for big ticket items or specific needs, such as renovation or purchase of household equipment, while almost 35 per cent said they would use or used loans to fulfil last-minute emergency cash needs.

Mr Kumar said: "On this note, it becomes increasingly important for us to provide greater flexibility while ensuring that customers are well-informed and educated before taking up a loan."

GE Money is a unit of General Electric Company and a provider of retail, banking and credit services. GE Money has over 130 million customers in 55 countries.

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