Every now and then you might encounter some financial concerns in life. In such situations, you will need to choose a reputable money lender. The lender needs to be able to offer you suitable loan packages for your needs. The loans offered should be attracting low interests.
To help you find the right moneylender that will accept your terms. You should consider looking at the moneylender reviews available. Using the moneylender reviews is very convenient for first-time borrowers. They can also be used by the borrowers who are seeking better borrowing experience.
Even as you work with the review for research. Take the time to visit the lenders you choose to work with. Considering that there are different lenders in Singapore who claim to offer low interests. It is rather difficult to pick the one who will actually assist with your finances. This has led to many potential borrowers to visit the moneylender review sites. These sites will help you know the experiences and opinions of other borrowers.
Finding A Low-interest Moneylender
The latest licensed moneylenders 2018 list is available at the Moneylenders’ Registry. Singapore regulates strictly the money lenders. The lenders risk having their licenses getting revoked. Whenever they breach the 2008 Moneylenders Act.
In accordance with this Act, legal moneylenders may only charge a rate of 4% each month. The set cap applies to both unsecured and secured personal loans. Given that a borrower has failed to pay back their personal loan. And more so on the set due date. Therefore, the maximum interest a money lender needs to charge does not exceed 4%. This is charged on the outstanding balance for all the months that have lapsed.
That means the interest will be calculated based on the principal amount remaining. This is after the total payments have been deducted.
Given that you have taken a personal loan totalling S$ 11,000. Yet you have paid S$5,000 back. Therefore, the rates of interest for late payment can only be calculated on the outstanding S$6,000. in this example, you realize that the late interest does not consider the initial principal. Not unless a borrower has not made a single payment.
Therefore, what happens you have a remaining balance. However, it is not due yet to being paid back. Assuming for instance that your loan amount totals S$ 11,000. When the borrower misses the first remittance of S$2,500. Thus the moneylender will charge late interest only on the missed repayment of S$2,500. Thus remaining balance that is not overdue yet is not affected. Therefore it will not be taken into consideration.
Moneylender Review Benefits
Many Singaporeans think that the review sites offer them the vantage of foresight. Meaning you get to have an idea of ways that a money lender relates deals with their customers. This is often based on the experiences of past borrowers.
This gives a borrower the certainty that a given moneylender offers quality services. That is in addition to their loan products. From the ratings and testimonials, you will tell how content previous clients were. Even then, some borrowers get to share the bad experiences. Thus other borrowers will be aware of what to expect. Especially when they deal with the same moneylender.
Using the review sites, being able to find the right moneylender becomes very easy. Even then make sure that you do your own research. This is in addition to the information you gather from the review sites.
Moneylender Review Limitations
About 58% of BrightLocal respondents to their annual survey stated that. Having star ratings on average is the most important factor in online review sites. Generally, 84% of the consumers agreed that they believe the information in online reviews. But, be careful with the information you choose to trust from these reviews. Always consider getting further information from people you know personally.
Review sites may not give the whole picture. Many consumers tend to write reviews when they have a poor experience. Other clients who have a positive experience will not be concerned with writing reviews at all.
It is important that you realize that people have varying opinions and viewpoints. What one may consider being irritating, could be bearable for you. What one person rates as 2 stars might be 4-star to you. When you are searching for a moneylender, take time to research and shop around. Focus on getting concrete details on the lender of choice.
What it means for you
Consider getting personal loans from reliable legal moneylenders. This will help you avoid getting scammed by the loan sharks. A certified moneylender does not charge borrowers unfair rates of interest. The money lending business is based on trust. Then people often become loyal customers when they are contented.
The more content a customer is. It means the moneylender stays in business for years to come. Such a lender has gathered lots of experience over the years.
Moneylenders may give you a peek into how several money lenders deal with their clients. Even then the lender’s actual results tell their story.
Take the time to shop around for various moneylenders. Search the one who has suitable terms for you. Do not rush in and then sign up for the offered loan. Only do so once you agree with conditions and terms of the loan.
Consider whether you can keep the contractual terms. Analyse your salary and financial obligations. Only borrow an amount that actually needs and can easily repay. Realize that when you are not able to meet the agreement conditions. Late repayment fees and interest costs might be a strain on you. This is financially for both you and your kin.
Assess carefully the loan terms before you accept it. Especially one that lets a moneylender put a caveat. More so for proceeds from any sale of your property. Thus should you miss to repay the loan. Having a caveat set against the property. You may not sell off the property before first settling your loan in full. When the loan amount is deducted from the returns. Once your property has been sold. It might clear all or even part of your returns.