The certified moneylenders are among the financial institutions that grant loans. The loans they offer are then repaid over a set period of time. On short notice, the moneylenders can be rather helpful, and they also offer several loan types that can help you ease financial troubles. This includes payday loans as well as personal loans. Ask a licensed money lender in Singapore regarding these loans.
You may wonder how much loan can you take when you apply to either bank or moneylender and how long does it take to get approved? Approval of bank loans is among the most complex since they take days to weeks to get approved. And you still end up getting rejected if you didn’t meet their requirements. When it comes to how much loan amount you can get will depend on your qualifications.
Thus, these borrowers become not entitled to bank loans because of failure to comply with requirements. When faced with such circumstances, licensed moneylenders are the best solution. They are handy for those borrowers who urgently need some money. There are financial companies that provide instant loans that come with flexible loan tenure at low-interest rates.
You need to be certain that the moneylender you pick is licensed. And that the lender follows the rules as well as regulations. These stipulations have been put in place to help protect both of them. That is the borrowers and the licensed lender as well. At times emergencies can occur that exceed your expectations. Hence, finding a dependable moneylender to assist you is a good idea. The licensed lender can help by offering you personal loans, home loans, and other types of loans.
You, however, need to recognize that unlicensed moneylenders are loan sharks. These illegal lenders have no fears in swindling and scamming people. And they can even go to the extent of harassing you in your private property or home. And will even commit identity thefts, in the process ruining you.
Why I Should Borrow From Moneylenders?
Legal moneylenders have a flexible loan authorization process, flexible loan tenures and they offer a low-interest rate on loans. This will allow you to get the loan fast, whether its home loan, personal loan, or payday loan. Getting a loan like a home loan on licensed moneylender is a lot faster when compared to getting a loan provided by the bank. Licensed money also offer hdb calculator loan on their site, their websites usually have these kinds of hdb calculator where you can check real-time the amount you need to pay depending on the loan tenure of the home loans you would like to take.
Most licensed moneylenders have minimum background checks but still provides you the maximum loan you can get. As long you comply and qualify on their requirements then you’ll get the maximum loan amount they can offer. These legal lenders also offer low-interest rates as compared to bank loans who usually apply a higher interest rate. These rates are often set by the moneylenders’ monetary authority of Singapore, wherein these bodies like the Ministry of Law monitors lenders to prevent illegal activities. For this reason, borrowing from moneylenders will make loan tenure repayment easier.
You will not need to run around looking for loans fitting your needs. The moneylenders will offer you different loan alternatives. And this is useful for cash-strapped Singaporeans to help meet their needs. These legal lenders have intricate as well as dedicated consultations. The licensed moneylenders are able to make out your needs. Thus they can easily match you with the most suitable solution. In doing so this will be a very easy process and experience for you.
The moneylenders have their activities in alignment with the Moneylenders’ Registry. They also stick by regulations set by the Singaporean government. These regulations are on interest rates as well as the loan tenure repayment plans.
All these terms are chartered by the Act of Moneylenders. And they also obey the law plus benefit all their clients. These lenders don’t have any hidden fees and have no surprise costs. All their fees are broken and calculated for you. In addition, the conditions and terms are made clear to you. And this they do before you can sign the contract and be granted the loan.
How Much I Can Borrow?
There are two loan types are available that you could choose. This is especially when borrowing money from a legal moneylender:
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Secured Loans
You have to remember that when it comes to secured loans, collateral is required by the lender. For instance, you are shopping for home loans and you wanted to get it fast, collaterals are usually required by the licensed money lender. Upon using their loan calculator hdb and you decided that the home loan on a certain moneylender like Loan Advisor is better than a bank loan. Then collateral will serve as an assurance to the lender that you will pay your loan.
Aside from checking your personal information like monthly income, credit card debts, and another form of debt, the moneylender will base its assessment more on your ability to pay. One advantage of secured loans is that they have low-interest rates. This means that the lender will charge you with a smaller amount of interest rate compared to an unsecured loan with the same amount of loan.
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Unsecured Loans
These are loans you can get on based on your credit rating or credit history. Meaning you can access it without using any type of collateral. Unlike banks that rely heavily on requirements, unsecured loans from moneylenders don’t require the nitty-gritty process of applying. Often times, lenders depend on your credit rate alone, unlike banks who scrutinize your monthly income, credit card debt, and another existing bank loan. This means that there is no risk in your part of losing an asset. You can still apply for a loan without worrying that you could lose your home or your car.
In the part of the lenders, an unsecured loan poses them a greater risk. To minimize this, they can only lend people a minimal amount which must be paid in a short period of time. The downside is that you will have a higher interest rate compared to secured loans. The higher interest rates serve as an assurance to the lender that they will be able to recover in case you fail to pay back your loan. For many, a high-interest rate could pose many problems in their finances.
When you use the unsecured loan, you will qualify for the below amounts:
| Annual Salary Range | Loan Amount |
|---|---|
| Less than $20,000 | $3,000 |
| From $20,000 to $30,000 | 2 months of your salary |
| From 30,001 to $120,000 | 4 months of your salary |
| More than $120,001 | Any Amount |
- When your yearly salary is below S$20,000, you could take out a total of S$3000.
- When your yearly salary is above S$20,000 but under S$30,000, you could take out a total of 2 months’ your income
- When your yearly income is above S$30,000 but below S$120,000, you could take out a loan totalling 4 months’ your income.
- When your yearly salary is S$120,000, you could take out any loan amount you would like.
The Interest Rates Charged
Since 2015 October, licensed money lender Singapore may charge up to 4 percent rate. This is regardless of the loan amount borrowed. This 4 percent interest is charged for both unsecured and secured loans. When you fail to make a payment in any month you incur a fee. The interest charged on the late payment is set at 4% as well. And it’s charged on the late repayments. You will also be charge for some admin fees in processing your documents.
Other fees you need to consider
The licensed moneylenders are allowed to set the following charges. And just these fees can be calculated on all loans they give:
- Once you have been awarded a loan. You will be charged an interest not exceeding 10% of your principal loan.
- Every month’s settlement that you fail to make you will incur a fee. You will be charged a charge of about S$60.
- A lender might file any successful claim for the recovery of payday loans. You will have to pay the legal fees. These charges will have been ordered by the law court.
Conclusion
Licensed moneylenders are among the financial institutions that offer loans. The loans they offer are payable over a set time. On short notice, these money lenders can help you greatly during the financial crisis. They also offer several loan types that include payday loans as well as personal loans.
Loan Advisor helps you get the best loan deals from legitimate money lending services in Singapore. It is a finance directory comparison website that helps you check and compare moneylenders. Visit Loan Advisor website today and shop the best loan deals in Singapore!
Check out here for the Ultimate Guide to borrowing from Licensed Money Lender in Singapore.
