When faced with a financial setback, a personal loan can help you manage your household. With the high cost of living in Singapore, most commodities cost more. This causes an effect on your finances leading to the need for additional funds.
What can you do to get the extra amount you need? In Singapore, personal loans are easily accessible, have flexible repayment plans and with a poor credit score, you will find lenders willing to work with you.
Who are trustworthy moneylenders?
Normally, traditional financial organizations restrict loan products to their clients. This has led to legal moneylenders becoming more popular. This is due to their easy eligibility criteria, flexible payment plans and fast approval with minimal background checks. Moneylenders are regulated by the 2008 Act of Moneylenders. Hence, they follow the rules and regulations set by the government.
Moneylenders in Singapore
What role do moneylenders play? Since traditional lenders are reluctant to offer such lending services. The licensed moneylenders have recognized the need to provide these loan types. Owing to this, they have moved quickly to cater for this need and in the process providing financial ease to numerous borrowers.
For you to find the best lender to work with, you will need to locate a reliable money lender, compare different personal loan deals, and find the best and affordable loan package.
Who qualifies for a loan?
For you to qualify for a loan in Singapore, you need to be salaried or self-employed. You also should be aged 21 years or more and a Singapore citizen. In meeting this, you are eligible to get a personal loan. Additionally, foreigners holding valid work permits can access loans provided they can show proof that they hold steady employment.
Type of loans available
Typically, personal loans can be classified into two categories namely unsecured and secured loans. The unsecured loans pegs on your income and other income sources like commissions or self-employment. While secured loans require security which you present as a valuable item. Before choosing any loan type, be sure you know the one that you want.
What amount can you borrow from legal lenders
As a responsible borrower, you should recognize that you need to exercise caution before getting a loan package. There are several issues that you need to address such as the following:
Considering your income level know the amount that you can borrow. When your annual wages are below $20,000, you qualify for a loan adding to $3,000. Having a yearly income totaling between $20,000 to $30,000, you qualify to borrow an amount of about 2 month’s your salary.
When you make an amount between $30,000 – $120,000, you qualify to borrow an amount totaling 4 times your monthly salary. And with an annual income of more than $120,000, you qualify to take out a loan of any amount.
Even then, it is advisable that you borrow an amount that you can repay with ease and without a glitch.
What are the best rates?
The rates offered will depend on the lender but importantly, on your financial needs and income level. In following the government ruling, the chargeable interest rate is from 1% a month, and are capped at 4 per cent each month. But, be sure to use a loan calculator as you compare loan rates. This way you will know the exact amount to be repaid in installments.
Charges and fees: You might incur a penalty should you make late repayment and some moneylenders will charge you for early termination of the contract. Additional charges are processing costs but these will depend on your lender.
Documentation: You will require your NRIC card copy, self-employed borrowers should submit their income tax statement, CPF statement, a utility bill proving your residency, and tenancy agreement. Foreigners should present a valid work pass in addition to the above documents.
How to Find The Best Moneylender
It is quite easy to find out if a moneylender holds a license. Where can you check to confirm this information? In Singapore, you will find government listings and fast online searches which you can use to find a suitable and reliable moneylender.
What To Look For In a Legal Lender
While you look for a licensed moneylender, you should also look for lower interest personal loan. In addition look for a longer repayment period, and a reliable moneylender. Be sure to get this before you decide to deal with them.
Even when a lender tells you they are reliable is not enough proof. How can you confirm this? You can consider reading several money lender ratings, reviews, online posts, and government rating. In so doing, you will be able to find a suitable lender who is willing to work with you.
- Best terms
To help in making sure that you receive the best loan offers, you may have to set aside some time to do thorough research. Why do you need thorough research? In using thorough research, it will help you find the best moneylender who can get you a favorable loan package.
- Which moneylender do I pick?
What can you do to ensure that you select the best money lender for your needs? If you feel uncertain about how you can do this, there are numerous resources available. With these, you will be able to find one for your financial needs.
All you will need to do is start an online search, make some comparisons of the top lenders available. Also, consider checking out some of the government sites with information on licensed moneylenders. These are some of the resources that will help you locate a reliable moneylender. Make sure you choose loan terms that are convenient for you to follow as you repay your loan.
Keep in mind that personal loans are valuable lending tools. And when these are used as intended they will offer you the most benefit. How do you ensure that you get the best loan deal and a suitable lender? Through researching and comparing, rates offered you will get the best loan deal to suit your financial needs.