A licensed money lender in Singapore operates within the set rules and regulations. These rules and regulations mainly protect the borrowers’ interest when dealing with moneylenders.
Therefore, if you are looking forward to getting a loan from money lenders, you must understand the process and the associated risks. In this post, we’ll cover everything you need to know about borrowing from a money lender Singapore, from choosing the right one to applying and your responsibility regarding loan management.
Things to Consider when Selecting a Money Lender in Singapore
Money lenders in Singapore offer services such as instant cash paydays for personal and business purposes.
The following are fundamental things that you have to consider while choosing any money lender in Singapore:
- Interest Rate: The interest rate is the cost of credit or borrowing. Different money lenders charge different interest rates that you must compare and settle for the optimal alternative.
- Fees: Most lenders also charge other fees, which include processing and late payment charges. When choosing a money lender to borrow from, enquiring about all the fees is necessary before making a deal for credit.
- Repayment period: The loan period refers to when you are to pay back the money lent. You must establish and ensure you’re comfortable with the given time. You must have sufficient time to pay the loan at your comfort.
- Reputation: You have to pick a reputable lender. To ascertain the reputation of the moneylenders, focus on online reviews and the moneylenders’ websites. You will get to understand a lender’s reputation.
- License: In Singapore, the Ministry of Law must license all money lenders. The list of licensed moneylenders is available on the Ministry of Law’s website.
How to Apply for a Loan with a Licensed Money Lender in Singapore
Applying for a loan with a licensed money lender in Singapore is relatively easy. You will be expected to provide information on the following:
Your details: Your name, address, date of birth, and ID number
Income Details: Provide your income and employment.
Bank Statements: Your bank statements are equally important.
After providing the above, the money lender goes through the information you fill in to decide whether to grant or not to lend the money to you.
Most importantly, you will likely qualify for a loan after doing everything correctly and providing satisfactory information. After getting approved for the application, you sign a loan agreement.
How to Service Your Loan Responsibly
Once you get the loan, you must pay within the given terms and conditions. Failure to repay the loan within agreed-upon terms or default might have several repercussions. Some implications include legal redress, added fees, and resultant effect on your credit rating.
Therefore, for all these reasons, be more cautious and service your loan responsibly so that you do not experience defaults on payment.
Importantly, when repaying the loans, always remember to:
- Pay on Time: You have to make timely repayments as this prevents late fees or fines.
- Budget your payments: A proper budget will enable you to know whether or not you can afford loan payments.
- Pay off early: Pay your loan early enough to save on interest charges.
- Contact your lender if you need help: If you cannot repay the loan, immediately contact your lender to negotiate a new and comfortable payment schedule.
Conclusion
Mainly, it is convenient and easy to borrow from a licensed money lender Singapore. You only need to carefully choose a reputable money lender and understand the loan terms before you sign an agreement.
This way, you will be guided through borrowing cash without getting into a financial quagmire. Finally, always ensure that you observe the loan’s terms and conditions of repayment.