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Don’t Let 7 Personal Loan Myths in Singapore Stop You

Don’t Let 7 Personal Loan Myths in Singapore Stop You

If you urgently are in need of quick cash but possibly have firm misconceptions regarding personal loans available in Singapore, the below guidelines will help you gain a new perspective to loan products from authorized money lenders.

Personal loans offered by Licensed Money Lenders are frequently the last option for most customers who urgently need money. A lot of people in Singapore do not make use of this credit alternative, and will often prefer to utilize cash withdrawals offered on their credit cards.

When you opt for the instant cash type of loan, you are able to finance everything that is at the bracket price of S$500 – S$100K. The repayment schedule is often times flexible plus you will be expected to repay the personal loan with a low-interest rate.

Even then, there are individuals who are still reluctant to make use of these loans types. Some of the reasons behind their hesitance could be attributed to some of the common myths regarding loans from licensed money lenders.

Read to find out some of the common myths about authorized moneylender loans.

It Is Just For The Employed

You could be a self-employed professional or even contract workers, both of these individuals do qualify for a personal loan from licensed lenders in Singapore. It is very likely that you do not know that you are just as eligible for fast cash loans available in Singapore from a licensed moneylender. All you are required to do is to make available all the relevant business or your employment details, SingPass details, bank statements, as well as any additional documents necessary.

Loan Processes Are Difficult

This belief is way further from the truth. It is so easy to apply for a personal loan online issued by a licensed money lending company. In addition, it is simple when you have provided all the right documents as well as proofs in person at the legal money lenders offices. Your loan request is then processed rather fast. Once authorized, you will be able to get your ready cash in under an hour after your request has been approved.

Personal Loans Need Security

Although most banks in Singapore will mostly insist on a borrower having some type of security for any large loan amounts taken out. On the other hand, a legal money lender available in areas near you will usually extend to you the payday loan without asking you to present some security. As long as you are able to provide proof of your ability to repay the loan, most money lenders will be glad to come to your aid financially.

Purchases Using Credit Cards Are A Lot Cheaper

Although your credit card possibly will provide you with a bigger credit limit, it will at the same time charge higher rates of interest on your repayments. The one advantage you will likely enjoy when borrowing from licensed money lending companies is the lower rates of interest charges on your loans.

Since licensed money lenders in Singapore are under new regulations from the Lenders Registrar, you will not be charged interest above 4% for each month. You can make use of an online loan calculator to confirm it the fee.

Also, make sure you make a comparison between the interest rate charged on your credit cards with the rates offered by the legal money lenders in Singapore before choosing the loan that suits your financial needs.

Borrowers Are Required To Have Good Credit Scores

Though credit scores are important, and for the most part for the banks in Singapore. On the other hand, a lower credit score will not stop you from receiving a personal loan provided by a licensed moneylender near your area.

Most money lenders are less likely to turn down your loan application because of a lower score. The only time they may be hesitant to give you a loan service, is if you have a record of non-payment of your instalment payments.

Existing Loans Influence Your Eligibility For A Personal Loan

Some individuals in Singapore may be concerned that their loan request will be turned down owing to EMI payments on their home loans. Legally approved money lenders will under no circumstances discard your loan request for the reason that you have an outstanding loan.

Under such circumstances, they act in your best interest. They do not intend to get you into a deeper financial roller coaster but instead may give you a smaller manageable loan amount. And this is when you have a large outstanding loan amount. Before you dismiss money lenders ins in Singapore, be sure to contact them for inquiries to check what they can work out for you.

Focused On Rates Of Interest

Although is important for you to confirm the rates of interest charged on a loan, it should not be the ultimate result. The payday loans offered by licensed money lenders in Singapore come with other additional charges which include late payment fees, admin fees as well as interests charged on any missed payments.

There are, however, a few lenders who might still charge you a penalty for any early settlement you may make. This is because they are losing some interest income. It is advisable that you go through each and every one of the charges on your loan before you can make the last decision. Do take time to shop around for the right licensed money lender who will be ready to work with you by giving you the best deal with the most suitable interests.


Though you need quick cash immediately, you may probably have misconceptions regarding personal loans in Singapore. Most people in Singapore do not make use of this credit alternative, and they often prefer to utilize cash withdrawals through their credit cards.

Unknown to most people both self-employed and employees of a company do qualify for a personal loan from licensed lenders in Singapore. Be sure to talk to a legal money lender near you as they will usually extend to you a loan without asking you for some security