What You Need to Know When Borrowing from a Licensed Money Lender Singapore
A licensed money lender in Singapore issues convenient loans for crucial financial purposes in case one is fixed and needs a quick loan.
Importantly, when borrowing from a licensed money lender Singapore, you must understand how they operate. Therefore, in the post, we’ll discuss in detail all that you need to know about money lending Singapore and how to apply for loans if you qualify and are interested.
4 Things You Need to Know
1. Eligibility Criteria
While the requirements may not be as elaborate and strict as for banks and other financial institutions, you are still required to meet a number of the qualifying criteria, including;
- You must be a citizen or permanent resident of Singapore
- Must have at least attained the age of 21
- Must have a fixed income
- Must have a good credit rating
Notably, while not all money lenders have the same eligibility, it is better to check with the money lender you want to borrow from regarding your qualification status.
2. Interest Rates
The Ministry of Law, Singapore, regulates personal loan interest from licensed money lenders. Notably, while the maximum permissible interest rate is capped at 4% monthly, different money lenders charge differently. The rate of interest charged will mainly depend on your creditworthiness and the loan amount.
3. Repayment Options
The loan repayment options from licensed money lenders in Singapore are usually flexible. The repayment options are mainly mutually agreed upon by the borrower and the lender. Importantly, the agreed-upon option will be based on the borrower’s financial status. Depending on one’s financial situation, some of the forms of repayment options include:
- Monthly installments
- Bi-weekly installments
- Weekly installments
Notably, irrespective of the level of flexibility, the repayment period for loans from money lenders is generally short and ranges between a few weeks to a few months.
4. Application Process
Applying for loans from a licensed money lender in Singapore is easy to use and fast. Generally, the following are the steps you should follow:
- Find the right moneylender: Search for licensed lenders offering the most feasible interest rates and modes of payment.
- Get your documents ready: Make sure all necessary documents, such as the proof of income and bank statements, are ready.
- Application: you can apply for the loan online or in person by providing all the information and the required documents.
- Loan Approval: The lender will approve your application once your eligibility criteria are good and you are creditworthy. Mainly, an offer will be extended if your application gets approved.
- Disbursement: Once the loan offer is approved, the loan amount will be credited to your bank account.
Responsible Borrowing Tips
Quick loans are the most suitable way of liquidating cash but are appropriative of responsible borrowing. Here are some tips to be observed:
Borrow only when necessary and unavoidable: importantly, only borrow the amount you know you can repay.
Read the Terms and Conditions carefully: Know what interest rate, fees, and repayment terms you are getting into before signing up for a loan.
Pay on time: Always repay the loan on time to avoid charges and penalties. If you face any challenges, you can negotiate repayment terms with your money lender.
Explore alternative options: Usually, borrowing from a licensed money lender should be your last option. Therefore, you should contact your friends or relatives to help you, or you can rely on your credit cards rather than get into loan services.
Seek help from your lender: In case of any problem in repaying the amount, directly contact the customer support assistant who has been assigned and have an open discussion regarding the options available.
Conclusion
Licensed money lenders in Singapore make loans conveniently available. Importantly, as much as they offer personal loans as a useful financial tool, it is good to be cautious when borrowing from them