How to Prepare for a Loan Application for 2018

Applying for a personal loan is never easy because there are a lot of things you need to consider before you apply one. One has to consider the requirements for the loan they are trying to apply, the amount you plan to borrow, your credit history, and which moneylender to go to when you are ready.

However, even if you have all the requirements ready, stories of those who failed to get a personal loan would cause you to have doubts about your loan preparations. If you panic too much, it will lead you to have troubles with your own applications.

Contrary to popular belief, moneylenders – as well as non-banking institutions – are actually quite straightforward when it comes to processing loan applications and what they need. They will clearly stress their guidelines when you inquire and it only takes a few hours to get processed if all the requirements are met.

If you are planning to seek a personal loan or any other loan from a moneylender, here are some tips to make it swift and successful:

  • Understand the facts about the Total Debt Servicing Ratio

In order to determine if a borrower should be permitted to get a personal loan, Singapore moneylenders and other lending institutions use the Total Debt Servicing Ratio framework as ordered by the Monetary Authority of Singapore. The TDSR assists applicants in making good financial decisions and help determine how much they can actually borrow and pay.

By understanding the TDSR, you will be able to determine if you will be able to borrow the amount you intend to apply for based on your income or assets. If banks and moneylenders see that your income is greater than the amount you intend to borrow, they will approve your personal loan application without any fuzz.

  • Develop your credit history

Nowadays, it is not really uncommon for people to have a lot of loans under their plate due to the expenses one has to pay monthly. However, if your loans already comprise 60% of your total income, getting another loan approved can be difficult. Some moneylenders may permit you to borrow more, especially if you are a returning client, but the amount may not be as high as you hope.

Before you apply for a personal loan, check your credit history first to see if there will be issues with your application. You can request your credit history through the Credit Bureau Singapore for a small fee. Your credit history would indicate all your outstanding debts, and your current and past transactions.

If you have a lot of active debts, it would be ideal to consolidate them into one debt through debt consolidation loans. This will help you pay your debts easier since you will only have to pay one monthly until your loan term ends.

You can also build your credit history by paying your dues on time or using a secured credit card instead of a regular credit card. You can also deposit a lot in your bank account and prevent excess withdrawals.

For those with black marks in their account, or those with foreclosed accounts or defaulted loans, it is ideal you speak to a financial expert to help you rebuild your credit history.

  • Check the market

Banks, moneylenders and financial institutions often check the market to determine if they should approve personal loan applications. If the market is unstable, they will have scarce resources to lend loans to borrowers and loans will become more expensive. If the market is stable, they will be able to offer cheaper loans.

Time your loan application during the months when the market is stable so you have more chances to get your loan application approved. You may even get nice rates during this time.

  • Prepare the right documents

If you wish to apply for a personal loan, you must be able to present the right documents to prove that you will be able to pay your loan. Some of the documents that may be asked from you include your income tax, NRIC, CPF Contribution History and your pay slips. They will also ask for your employment contract or sources of income.

You must make sure that you have copies on hand so the bank or moneylender will not have to wait for you to produce these files. Make it a point to photocopy these documents and ensure they are up-to-date. If you miss any one of these documents, you may find it difficult to get your application approved.

Once your loan is processed, they will return these documents to you.

  • Do research about the moneylender and personal loan you plan to apply for

Finally, when you have everything ready, you must do your research when it comes to which moneylender will provide you the right personal loan that matches your needs.

Remember, not all moneylenders or financial institutions in the market are trustworthy, which is why it is important you check with the government if the moneylender you plan to use is registered. The Ministry of Law has a full registry of approved moneylenders.

You must also check which loan program you are planning to get. Consider the interest rates, the length of payment terms, amount of repayments and the type of loan it is: whether it is secured or unsecured loans.

Moneylenders will be happy to answer any inquiries you have about the loans and if you think you need a more flexible plan, they could sort it out for you.

Final remarks

If you want to ensure that your loan applications will be approved in no time at all, you need to prepare as early as possible once you decide that it is the solution you need for your cash problems.

If you do your research, studied all the available loans for you to choose from, and prepared your documents, you will be able to make a better financial choice.

Early preparation would also help you speed up your loan application and guarantee that you will be able to get your loans without any problems.

Expenses That Come From Renovating Your HDB Flat

You now have purchased an HDB flat and you would like to renovate it. Certainly, doing this is not a bad thing, particularly when the setup or old style does not meet your standards. It could be that you would like a different layout and even some additional features to meet all your family’s needs. Then, a renovation could just be the right thing for your property.

Major Expenses Involved

Even then, there are major expenses that accompany renovation projects. It is for this reason why people will get personal loans either offered by banks or moneylenders to boost their renovation budget. They could even have one moneylender personal loan in addition to another once the renovation funds run out.

Actually, when it comes to such projects the budget is limitless, and you should aim at being more careful of the budget and follow it all the way.

How can you do this? Even when you would like a fancy interior design, but your funds are not enough for it, then consider making compromises and opt for a simpler yet more economical option.

How then can you know the amount you need to have before you begin the whole renovation project? And how can you gain knowledge and create a decent budget for it?

Know the Costs Involved

Actually, you should be more practical concerning the real cost of your project and not compromise the quality of the outcome. Keep in mind that renovations do not come cheap.

Therefore, there are some expenses to consider such as carpenter, plumbing, interior design, and other things concerning the project. What can you do to get value for your money during a renovation project?

Here some guideline of things to consider as you prepare the amount you will need for the Reno project.

  • Ensure That All Work You Need To Be Done Is Included In The Package.

Make sure you have thoroughly looked and ascertained that all the work you want to be done is covered in the package. Some of the common components involved in any renovation package include curtains ($1,000), cement screeding ($1,000), light fixtures and electrician fees ($4,000), window-grills installation ($500), and Air conditioning installation fees ($3,500). In total, this will be $10,000.

Though this amount is only an estimate, it is possible you will need to add $10,000 extra to this amount. This is the amount you should put aside of the given costs for the renovation package. However, ensure that the interior designer you hired gives you the actual details of the Reno package and not omit some costs.

You definitely wouldn’t want to get caught with a huge amount added onto the agreed cost, which will only put you in rather dire financial issues.

  • Furnishing Expenses

If you have just moved into the flat, then possibly you do not have furniture from a previous property to use in the new house.

How do you ensure that furniture and other items are catered for?

It is, therefore, important to have an additional amount on top of the set renovation cost for purchasing furniture you will need. The sum will range from $10,000 to $20,000, based on the style, model, and brand of the furnishing you need.

Also, have an extra $10,000 set aside in case there are some items you would like to add to such as kids bed or additional storage space. With this, you can always adjust the cost accordingly based on the additional items of furnishings you want to acquire for your home.

  • Choose Actual Photos Rather Than 3D Perspective Images.

In order to give you an idea of the sort of work they are able to offer you, most interior designers will show you some stunning photos in their portfolio. What sets them apart? Some of the interior designers will show you the actual images of their work while others present only a 3D perspective.

However, if you would like to have a clearer idea of whether you should hire the professional for your project. Then, it’s best you avoid those who present you with the 3D perspective since these may mislead you.

How then can tell apart a real photo from a 3D? Consider looking at the window to have a view from it. If it is a 3D, you will easily notice a breathtaking panorama from it – and many times, it is just too good to be true.

  • Ensure Everything Is Covered.

How can you ensure that everything is included? The very least you could do is to ensure that the quote you get covers everything you need to be done.

All the same, there is no given package which can cover all conditions of clients. It could be you require more or less work done on your home, that’s why it is recommended that you list all the work to be done before signing the contract for your home renovation package.

Without confirming what you need to be done, you could be putting yourself up for dissatisfaction and an unpleasant surprise once the project is completed and handed over to you. Thus, it’s better you be clear from the very beginning.

Do ensure that you are given a quote depending on your unique needs and the actual dimensions of your home. Certainly, you do not want to get a ballpark amount that does not even seem realistic for that project you are considering.

Take Away

As you consider starting a renovation project on your HDB flat, it is advisable that you make some preparations concerning the sort of work you need to be done, professionals you need to hire, and a working budget for the entire task.

Always arm yourself with the necessary knowledge and possibly get some inspiration by going over interior design websites and magazines. These sources can give you ideas which you would consider implementing in your home.

Above all, ensure that you have a working budget from the start, then do your best to adhere to it and even get the sort of results you wish to achieve for the value of your money.

Why Your Bank Loan Was Denied or Approved?

When you are trying to get a mortgage, a credit card or a personal loan, banks and financial institutions offering credit will look at one major thing: How much risk will they face when they approve your application? Will they have to worry about losing money due to late payments or defaulted loans?

Considering this fact that financial institutions would like to prevent bad loans, your credit application should reflect that you are a low-risk borrower. If your loan is approved, the interest rate will be based on your risk level. If you are a low-risk borrower, your loan’s interest rate is lower. If you are a high-risk borrower, your interest rates are higher. Even if you promise to pay your loans, people can lie easily and because of this, it is difficult for financial institutions to see which ones they can trust.

With one’s loan application, it can help these credit providers determine if you can pay off your loans and the interest rate that will be charged to you.

Financial institutions in Singapore have their own policies in terms of personal loans and the rates they will take into consideration to determine if you should get the loan you applied for. They also have different guidelines to consider based on the market’s current status. If you have a strong credit application, your applications will always be approved and give you the best rates.

Here are the major things a loan officer would look into when reviewing your loan application and how these things can make or break your application:

Credit Score

For loan officers, your credit score is the best way to determine if your credit risk. In Singapore, one’s credit score is based on a four-digit number which ranges from 1000 to 2000. If you scored around 1000, they will be seen as a high-risk client and possibly default their payments. For those who scored higher, they are considered low-risk clients.

Of course, even if the Credit Bureau Singapore – Singapore’s top authority in terms of providing clear and comprehensive credit data of each individual in the country – ranks you as a low-risk client, it may not be the same score the loan officer will use to determine your application. Each financial institution may vary on how they would determine one’s credit score aside from checking the CBS’ record.

Credit History

One’s credit score is influenced by one’s credit history. Your credit history would detail how well you paid your past and present credits, your active and closed accounts and other credit-related history facts. Loan officers will check this part of your application closely to see if you can commit to repayments and you won’t risk your loans to default. Late repayments are black marks in any application, especially if you are 30 days late and more.

If your record has collections, legal action and garnishments such as bankruptcies or foreclosures, the loan officer will immediately take note of this because it indicates defaulted loans or credit. If you do have these in the record, it is best you provide a reasonable explanation for it so the loan officer can make exceptions if they are valid reasons.

Employment History

Your past and present employment history will also make an impact in your credit application because this will ensure that you have a stable source of income to pay your personal loan. If you have been working long for a certain job, it will reflect that you have a secure income source. If you change jobs regularly, especially when it somehow times with your loan application, it may tell your loan officer that you may not have a regular income source and you are at risk of losing this job.

If you have not worked for the job for long, it is ok. If you switched jobs but still remain on the same industry, loan officers will see its job as the same line of employment.

Debt and Income

Another factor being considered in credit applications is your capacity to pay the new loan. The loan officer will look into your credit history and check how much debts you have and see if it makes sense with your income. Loan officers may ask for your income per month and see how each percentage is allotted for expenses and other aspects. If your credit history is good and you do pay your debts regularly, they would trust you with your application.

If you get denied, pay off your debts first, lower your monthly payments, or wait until your income improves. If you get a raise, wait for it to be applied and wait for a few months before you apply.

Collateral

Depending on the loan you applied for, loan officers would also consider your property or your collateral’s value. If you fail to pay your loan, the collateral will be used as payment. A collateral gives a financial institution security because they can still get an asset if you default your loans and sell it to reclaim the amount they lost.

Of course, if you applied for an unsecured loan or loans without collateral, they will not be looking for a collateral. However, they will be wearier of your application since such loans present more risk of loss, especially if you stop paying your loans.

What’s your alternative?

If you cannot get an approval for your personal loans through a bank due to a problem on your credit history and requirements, there is another way you can get funds for your needs: seek a moneylender.

Singapore has a lot of licensed moneylenders people can choose from in case they need funds. Like banks, moneylenders offer loans of various types depending on the person’s needs.

Unlike banks which consider the noted factors above strictly to determine if you can pay off the loan, you are applying for. Even if you have a bad credit history or have no history at all, moneylenders can still approve your application if your supporting documents can support your paying capacity.

Of course, if you do have a bad credit history or no history, some moneylenders may be hesitant to accept your application depending on how bad your credit history is like.

Conclusion

Moneylenders, banks and other financial institutions don’t really want to restrict their services to users. However, the reason they may deny your request for a personal loan is that they also have to consider their other customers who are paying them regularly. Even if one bank or credit provider denies your application, others may reconsider and approve it.

If you feel as if you have problems with the five aspects above, immediately find a way to remedy the problem because it will make your future applications easier.

Pro And Cons Of Instant Cash Loan In Singapore

The Singaporean lending industry is perpetually revolving to adjust to the many changes that occur in the government policies and the financial world. This has caused stiff competition and most use instant cash loan deals to lure customers.

Due to the current bad economy, with salaries and wages stagnating and reduced job availability many Singaporeans get loans to be able to meet their needs and resolve their financial needs.

In Singapore, you will find different loan choices, instant cash loan option is among the most popular loan type taken by borrowers. Both moneylenders and banks offer instant cash loans, and at times they are just referred to cash loans. However, it is crucial for borrowers to consider the different pros and cons of these loan offerings.

Pros

Easy to Obtain

As we continue to be more digital, so are businesses like the moneylenders. Thus you can get a pre-approval online without visiting the lenders’ office to await approval. Borrowers can now get several quotes as well from different moneylenders. This will let them survey the market, get quotes, compare offerings and then make more informed choices later on.

Fast

From the name Instant cash loan allow borrowers to obtain cash rather fast. This is since the credit checks are fewer and no collateral is needed. Moneylenders can now give a quote following your monthly wages, popularly through email requests. Many loan applications get responses within 1to 2 working days.

Flexible

Cash loans are easier to understand. Provided there is proof of steady income, a borrower will be able to access their loans. normally, borrowers might get to about 2 to 4 months of their monthly salary. Oftentimes your score will not be subjected to the approval process.

Cons

Control

Being able to access quick cash might make one get out of control. Borrowers might indulge in the newly acquired money rather than use it to repay debts or any other financial obligations. In getting the new cash you will require control, a healthy amount of discipline, and a good action plan. Be sure to plan your funds as tight as possible.

Useful Tips For Getting Instant Cash Loans By Licensed Moneylenders

  • Have the necessary documents as you make the application

    As you are filling out your loan application there are several forms of identifications that you will require. Any ID type, SingPass, and any other documents which will give proof of identity will possibly be accepted. This will be useful when you submit proof of employment such as your work ID card or an old payslip from past several weeks.Most licensed moneylenders will get more comfortable in giving you a cash loan as long as you will present evidence that you hold a steady employment and that you are a trustworthy borrower. This guarantees the moneylenders that you can repay the loan on time since you hold a steady job.

  • Avoid disrespectful and unkind moneylenders

    There are some moneylenders who will try to threaten their borrowers and some will even treat them in disrespectful ways. Thus it is recommended that you avoid these kinds of moneylenders. The reason for this is you deserve to be treated with respect and fairly as well. If you come across a money lender like this, then it could be time for you to consider choosing another lender to work with.

  • Enquire about collateral requirements

    It is crucial for borrowers to make inquiries about the collateral requirements prior to accepting any loan type. When your loan has a collateral, this then implies that that loan will only be given to you in exchange for a collateral.But, when you choose or even miss to repay your cash loan then your moneylender will claim the security item you had given as collateral. It could be your house, fancy jewelry item, and even a car. It will, however, be based on the amount you wish to borrow.

  • Know how to spot illegal moneylenders

    Prior to applying for cash loans, first ensure you confirm that the lender of your choice is licensed. If the lender you have chosen is not licensed, it is then recommended that you pick another one so as to avoid getting scammed.While you apply for a cash loan, ensure to always have your identification and documents are returned to you by your moneylender. The reason is that the lender does not have a reason to keep your private documents. When lenders intend to hold on to your documents, it is most likely their intentions are not good and thus you should look for a different lender.

  • Only sign complete loan agreements and ensure to get your copy

    Always make sure that you only sign a complete agreement for your loan. If you do not get issued with the full contract copy, the loan request could be deemed as fraudulent activity.Additionally, do not sign any form document which seems to be an incomplete contract. Confirm also that the agreement clearly shows the detailed loan terms of the cash loan as well as the loan repayment period. Your contract needs to also indicate the interest rates that will be applied on the cash loan you take. If any of these details are omitted, you need to ask for a copy or you select another lender.

Summary

Due to the new control measures set by the government, loan interests are capped now at 4 percent a month. The new regulation will have moneylenders having a keen watch on those they lend money to. Thus, be upfront when you have an issue or action plan since it will offer you a good chance to get loans from legal moneylenders.

Cash loans are a simple loan method, however, be a careful borrower and ensure you read the conditions and terms provided. When you have queries, contact the loan officer particularly when it concerns repayment terms and any additional costs and fees. By being a smart and a well-informed borrower, it will let you make informed choices. Above all, find a trustworthy and licensed moneylender who is willing to work with you.

 

Addressing the Myths Surrounding Singapore Credit Cards

Do you own a credit card?

If you do, do you know everything there is to know about it? If you don’t, don’t worry. There are people who still do not know everything about their credit cards even if they have been using it for a long time. Some don’t even know it comes with extra features that they can use for certain services.

However, there is a danger if you do not know everything about credit cards. Sometimes, you may find yourself believing a rumor and shake your trust with your credit card.

Before you go believing in these rumors and lament on closing your credit card, here are some of the myths that you should know about your credit cards and why these myths shouldn’t be believed in.

Debit Cards Vs. Credit Cards

Many people would immediately say you shouldn’t get a credit card because of the many bad things that can go wrong when using it, like credit card fraud, hidden charges, and other similar problems. They would even advice you to get a debit card instead since it is safe than credit cards.

However, credit cards actually come with more advantages than debit cards.

While debit cards do not come with an annual fee, it directly deducts the amount you use in your bank account. The more you use your debit card, the more your bank account decreases and the more it is at risk of being closed by accident. One’s credit rating can be affected by closed bank accounts, so debit cards can be detrimental to your credit history. Continuous use of debit cards also does not assist in building a credit history.

Meanwhile, credit cards do come with an annual fee, but when you use it, you don’t harm your bank balance since you are just temporarily borrowing money to pay the item immediately. As long as you use it properly and pay regularly, credit cards will help you build your credit history and show you are a regular payer.

When you try applying to loans, lenders will look into your credit history to see how well you paid your bills and credit cards and use it as the basis for the amount you can borrow.

Credit Card Balance Can Help Build Credit Rating

Many people believe that it is ok to have some balance in their credit cards. However, this should not be your practice when you have a credit card.

Having a remaining balance in your card and not paying it can affect your credit score. It will tell a moneylender if you are planning to apply for a personal loan in loan advisor, that you are a poor borrower because you always leave a balance hanging.

If you are not able to pay your balances in full, at least pay a part of your due, ideally more than the minimum amount specified, before your due date comes.

Keep One Credit Card

Many movies, advertisements and even shows often show people who have a lot of credit cards go into debt. However, it depends on every person on how well they will use their cards and if they have a strategy to pay for all of them without missing a due date.

Determine where you will use the cards for and how you can plan your payment scheme for all your cards. If you believe you can handle multiple cards, go for it.

If you do keep multiple cards, some of them offer rewards and cashback if you earn points as you use and pay regularly.

Your Credit Score Decreases When You Get a Credit Card

While it is true that new credit cards do deduct points from your credit score, the deduction is not that huge.

In Singapore, the deductions on credit history by new credit cards are only 5 points. If the card does make a problem with your credit score, just get a secured card since it would help you rebuild credit scores without worries.

Do not agree to offers of credit limit increase

Most banks would offer credit limit increases for some of their clientele who have proven they have used their credit cards wisely. However, some would say these are tricks and there is a catch once the credit limit increases.

It is possible there is a catch with credit card limit increases. However, you can also use that credit limit increase to your advantage based on your needs.

Alternative?

If you are still a bit scared about your credit cards, you can look into other alternatives which you can use when you do need money: from borrowing money from a relative or seeking out personal loans from a bank or a moneylender.

When you apply for a personal loan, you can identify how much you need to borrow, submit your requirements and wait for the approval of your chosen moneylender. Once it is approved, you can pay the personal loan off monthly or depend on your agreements.

What’s great with personal loans is the fact that the payment terms are longer than credit cards. In credit cards, you have to pay it immediately so you don’t incur high-interest rates.

Loans, on the other hand, will let you pay off how much you borrowed at a span of 3 to 5 years depending on your agreement with the lender. Loans also come with lower interest rates and they are quite constant, even if you are late in payments.

Consider Before Picking

Credit cards have their advantages and disadvantages, as well as misconceptions which you should look into before you believe it. While the disadvantages and the misconceptions can be scary, you don’t need to close your credit cards right away because you may need to use it in the long run.

If you want to lessen the load on your credit cards and the bills you pay each month, checking out alternatives would not hurt.

No matter which choice you make, just remember to think it through and prepare accordingly so you won’t get blindsided when it comes to paying your dues!

Why You Need a Bridging Loan In Singapore

Nowadays, the bridging loans are a becoming rather popular as a lending technique in Singapore. This loan type is more beneficial to borrowers when it is used as a temporary solution to their financial needs. This means it is a short-term loan. Here is a look at some concepts that will help you better understand Bridging loans.

What a Bridge Loan Is

The bridging loans are temporary loan facility that will offer you a steady cash-flow solution when you sell your home. This can be used to help you meet current obligations prior to securing a payment from the bank. The other source could be your permanent income source or another secondary source of income that will be coming in the near future.

The bridging loans will allow a borrower to financially close the gap between current obligations and funding that they need but it is yet to be available. Therefore, it can be used to link your incoming funds with your need to meet immediate and urgent payments.

How a Bridging Loan Differs From Traditional Loans

Bridging loans are quicker solutions than the traditional loans. It is for this reason that many people take this loan option. It offers you the amount you need whenever you need it to meet your financial commitments immediately typically when you sell your old house, like duty stamp fees for your new home. This is obligations that cannot be put on hold as you get a long-term loan that generally will take a long time to get approved.

Normally, bridging loans, have a faster process of application, approval, and disbursement. This is some of the things that a borrower needs to consider when they are in search of a suitable loan option. The processes need to be convenient in getting access to cash fast.

Why You Will Need a Bridging Loan

Even though the bridging loans are normally offered at higher rates of interest due to the risk involved. Taking out a bridging loan in Singapore comes with many benefits which may only be utilized by individuals that use them.

For instance, you can use a bridging loan to complete a sale of your landed property which would require a large amount of legal processing fees.

Bridging loans will also help in ensuring that individuals do not come short of a certain financial issue to meet their purchase requirements. Not to be confused by renovation loan which can be covered by personal loans, bridging loans are mainly to tide you during the gap of selling your old house and finalising the purchase of your new one.

In order for you to access reliable bridging loans, you can visit any licensed moneylender in Singapore. The moneylender you choose needs to be trustworthy and have acceptable terms for your needs.

Also, make sure that the lender is legitimate and licensed to operate their business. Your moneylender needs to be able to offer you the bridging loan amount whenever you need it. The loan should also come with a reasonable repayment period that is convenient for you.

What a Lender Will Check In Your Application

Generally, a moneylender providing you with bridging loan will confirm whether you have funding coming in from another source in near future. This is what indicates your ability to meet the set repayments in the agreed time period. A lender also checks to confirm whether you have alternative sources of income.

This is in case the earning in consideration are not available due to some unforeseen circumstance or event. However, this will not be an issue when the income source being considered is your main source of income. This is because it is without risks.

For this reason, a borrower can consider the bridging loan option as a good way of raising funds promptly. This will also offer you some relief and breathing space thus freeing you from lots of stress and worries.

For instance, when you make a contingency offer on a real estate you are interested in, and a Notice to Perform is issued by the seller. Then a bridging loan would be a suitable option to consider. This is because it will let you secure some funds in advance as you await your income at a later time. This will help you acquire the property you would want to have. At the same time, you will be able to repay the amount at a later time once the income you are awaiting comes through. Thus a bridging loan will save you much time and possible loss of real estate property you have been considering to purchase.

Why Get a Bridging Loan

Once you are certain that you will be receiving some money and can confirm that you will get to access the funds in future. It can happen that you need urgent funding now to settle some urgent obligations that have presented themselves.

As an individual getting a bridging loan easily the ideal option that is available for you. This is because you can access the funds you need fast and conveniently. You can then readily use for the purpose you have.

Since you are certain you will be receiving funds soon enough (from your main annual earnings or from selling a possession). It will be easy for you to repay the loan amount conveniently. But when it comes to the traditional loans, you will access funds rather slowly. At the same time, the repayments period is long term and will not best for your needs.

Make sure that you confirm the loan details with your money lender. This way you can make a better decision on the choice of the loan and the lender you work with.

 

Looking For A Short Term Loans In Singapore For Financial Crisis

It is hard to predict when you may need some extra cash. Luckily there are numerous sources of fast cash whenever the need arises. Fortunately, Singapore has many sources of credit thus you can compare some of the loan terms ahead of signing a contract.

When an urgent financial need arises, moneylenders are a fast source of funding. Singapore has many legal and licensed moneylenders. You simply need to know the type of payday loan that will work best for you and the terms that are favorable to you.

When To Get Short Term Loans

Whenever you are faced with a financial emergency to solve you are more likely to require a kind of short-term loan. This may be used to deal with all sorts of financial needs like car repairs, medical emergencies, paying off rent or utilities. This can be useful for you if you have a financial shortfall due to some reason.

Everyone will face some tough times every once in a while. Therefore, you should not feel ashamed when seeking financial assistance to a loan advisor whenever you need it. Even then, it is advisable that you get a loan responsibly. This you can do by ensuring that you only borrow what you need and can repay comfortably.

Where To Get Short-Term Loans In Singapore

In Singapore, there are numerous licensed moneylenders that you can visit for short-term loan services. These legal lenders will offer you with fast cash loans through an easy and quick process. Here is a look at a number of benefits of taking short-term loans from licensed moneylenders in Singapore.

Minimum documentation
Paperwork for making loan applications can be time-consuming. But, when dealing with moneylenders, the process is stress-free since they ask for basic, minimum documents to help process the loan application.

Fast loan processing
Moneylenders will take as fast as an hour when they are processing short-term loan applications.

Repayment Flexibility
As far as making repayments is concerned, the licensed moneylenders will offer you a flexible schedule that will suit your financial requirements.

Interest cap
Since the beginning of October 2015, the licensed moneylenders are to charge a cap of 4% interest a month. This is regardless of the loan type (unsecured or secured) or your income level.

Short-Term Loan Types

Depending on the moneylender you work with, there are many types of short-term loans to choose from;

Instant Cash Loan

From the name, this loan is approved in under a short time, normally within 1 hour. This kind of payday loan is mostly issued to existing customers who have proven to be trustworthy in payments. Also, these are borrowers with guaranteed payment ability. For instance, you can submit a pay slip. The rates of interest for this type of loan are high. The set repayment period is normally under 30 days.

The loan amount that will be made available to you for unsecured personal loans will be based on your ability to pay back. To determine this, the lender looks at your income and your credit history as well. Based on what your financial needs are, there are several options for short-term loans. Make sure to shop around for ideal loan terms.

Payday Loans

This loan type is for people who are employed. Your salary is what guarantees the loan. The loans are offered for a tenure of 31 days when you receive your salaries. It is the easiest loan type to get since most moneylenders will accept enough proof of your ability to repay such as employment letter and a recent pay slip. This loan is processed within a short period of under an hour.

When unforeseen emergency situations crop up. Taking a payday loan that can fit your needs will be helpful. This is because the loan will be authorized and disbursed to your account within a few hours. The payday loan is also known as cash advance loan. This loan type is best more so when you are faced with a financial challenge. Even then you need to fulfill some loan requirements.

Personal Loan

The personal loans are provided under varied terms for rates of interest and repayment period. You will be able to negotiate for different loan terms during the application for personal loans. This makes this among the most flexible loan available in the market.

Low-Income loan

This loan type caters to those with lower income and does not fulfill bank loan requirements. When you cannot fulfill the minimum bank’s income requirements. You will not be able to get the payday loan from them. On the other hand, moneylenders are catering to this group of people however, the loan amount will usually not be that high. The process of application is effortless and approval is just about guaranteed in most cases.

Things To Take Note Of:

  1. Always ensure that your moneylender holds a valid license to run their lending business. You can confirm this by searching the licensed moneylenders’ list accessible on the Singaporean Law Ministry website.
  2. Make certain that you are clear about all the contract terms.
  3. Take into account your salary and other financial commitments before getting the short-term loan. When you know you will not make to repay the installment in time. You risk incurring a late payment charge and interest costs which can further cause a dent in your finances.
  4. Only borrow the amount you need. Do not give into the temptation of taking out more money than what you need to cover your loan cash requirements.
  5. Request for a loan contract copy from your moneylender. Your lender is bound by law to clarify the contract terms using simple language that you will understand.
  6. Identify any terms contained in the contract which let your moneylender put a caveat on proceeds of the sale of your property in case you default. When your moneylender puts a caveat, you are legally bound by law to repay first the outstanding loan to the moneylender ahead of selling your property.
  7. Get in touch with several moneylenders to help locate the best contract terms. Do not sign a loan contract unless you accept the loan conditions and terms.

How Can You Pay Your Child’s Student Loan?

An undergrad degree in Singapore is worth more than it simply being a paper. This educational degree is what will lead to landing a dream job as well as secure your future. This could be the reason motivating as many as about 90% parents. These parents consider undergraduate degrees as a necessary educational qualification fitting for their children.

What is more, as many as 83% of the parents will be ready to send their youngsters abroad for their education. Even so, 42% of these parents may not have enough money saved up for funding the youngster’s higher education. This information has been derived from a report done for HSBC‘s Learning for life.

In these instances the only option available for parents. More so when they are not able to afford higher education for their children. They have to borrow a loan which puts a load on them in order to fund their kid’s student loans.

The issue here, however, is how you will repay the loan. This is after you have paid for your children’s education with the loan.

Make a Budget

When you really want to pay off the student loan as fast as possible. The best way to get you started is by taking the planned approach. In order to do this, you will need to make a working budget. Keep in mind that a good working budget can help you in saving more, monitoring your expenses. It will also ensure that you repay the premiums regularly. Here is a way you can come up with your budget.

  • Work out the sum of all your income. This needs to include the earned income, income you earn from house properties and investment dividends.
  • Write a list of all your monthly expenses. This will be easy because you have kept track of your expenditures.
  • Then divide the sum of income with the necessary expenses. This will include expenses such as transport, home utilities, and grocery.
  • Set aside some amount for loan repayment. Make sure that you put aside enough money to cover the minimum premium repayment.

Utilize your Bonus

When you get a bonus from your employer. Rather than you make big purchases or spending. You can use put it as a lump-sum for the loan repayment. This will significantly help you reduce the loan balance.

Save More

When you wish to repay your loan within a short time possible. The first thing for you to do is saving more. This might be rather challenging since there are many responsibilities and expenses to manage. However, here are some ways to help you save more.

  • Reduce your Expenses

First, identify those areas you are spending money on. Then look at the areas that you can reduce your expenditures. For instance, if you on a regular basis buy ice-cream, candy, and chocolate boxes. Such buys are luxury expenses which can be reduced on.

Likewise, determine those expenses that will be considered luxury expenses and are not necessary. Then you cut them down. In addition, look at other expenses which can be reduced. For instance, rather than taking a cab, you can use public transport for travel needs.

  • Monitor your Expenses

To start off monitor all your expenses. This will help you know areas that you are putting your money.

  • Give more than your Minimum Premium

You need to realize that the more money you pay, on your loan the interest charged reduces. So instead of maintaining the minimum amount payable to pay off your loan. You can focus on paying more. Below are some ways that you can use to do that.

  • Get a better paying job to help increase your earnings. This will mean you can pay higher premiums.
  • Save more to ensure that you gain extra funds which will increase your repayments.
  • Hone the best from your budget so as to increase your monthly or even bi-weekly premium repayment.
  • Consolidate your Debt

When a student loan among other debts you have taken. Then you may want to consider consolidating all your existing personal loans. You could be having a personal loan, home loan, and even medical debt. In this scenario, it is wise that you merge all your debts into a single one. In so doing, you will be able to better handle the repayment. You even may be able to ask for your interest rate to be revised for a better one.

It important that your child get educated and this needs not end at schooling level. Undergraduate and the post-graduate education will count as well. Thus your children need to attend college as well as the university. By acquiring higher education, it will improve your children’s career prospects. However, when you consider taking out a student loan. You will then have to take all necessary steps for you to repay it quickly.

  • Your Child can Pitch in

Since you will have taken the education loan to take your child through their studies. You could ask that they pitch in. By taking a side-job or even a work-from-home your child is able to earn some cash which they can put some to help settle the loan. When this is done right, the side job will not disrupt their education. This will also prepare your child for the adult life. A side job will also help teach your child to be financially accountable. It also is a good chance for some good parenting.

With the extra income coming in from your child, it will be very helpful in repaying the education loan as fast as possible.

Work With The Best Moneylender

When you burdened with a home loan, student loan, or even a personal loan. You can consider the debt consolidation loan from a reliable money lender. Make sure you do some research for a moneylender who is providing debt consolidation loans at a suitable rate. When choosing the right and legal lender, ensure you choose one who has been in the market for a long time. This will guarantee that you get a tailor-made loan deal to fit your needs.

4 Ways To Obtain Quick Cash In Singapore

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Life has its ups and downs and there are times when you might require some extra funds. These can be for compensating sudden expenses or even cover some financial emergency. This can be existing credit card bills.

Or medical condition that requires immediate attention. In such challenging times when an individual might be reluctant to look for help from relatives or friends. Legal moneylenders are a fitting solution in helping you clear up your financial situation.

To avoid lengthy approval processes at the bank. You can use the following methods of acquiring quick cash from licensed moneylenders:

Payday Loan

When faced with an unexpected emergency situation. Getting the payday loan will work best for you since it will be approved and availed to you within several hours. This loan is also referred to as cash advance loan. This type of loan is ideal especially when you find yourself in a financial fix. Yet you are required to meet short-term requirements.

Instant Cash Loan

With a flexible repayment schedule and instant approval. The instant cash type of loan is the efficient solution when you need some extra funds for handling an emergency. The rates of interest on both personal loans and instant cash loans are set at 4 percent a month or 48 percent per year as by loan advisor. So there is no difference.

Personal Loan

This is mostly an unsecured type of loan. The personal loans do not demand that you pledge your assets such as your house or car. Due to their low rates, the personal loan is often preferred when making huge purchases. It can also be used for debt consolidation.

Foreigner Loan

Based on the name, this loan type is open for foreigners in Singapore. The foreigner loan will be useful for you to cater for relocation expenses (like utility, rent, medical). This is as you settle in, more so in a country like Singapore that has a high living cost.

Quick cash loan will offer you the financial assistance you need to handle any pressing concern. Therefore, you can consult with your preferred moneylender for advice on the best move to make. Working with a licensed moneylender will offer you an efficient solution which will meet your needs.

Helpful Tips For Getting Fast Cash Loans By Licensed Lenders

Have necessary documents with you before applying

As you make your application for a loan you will need some form of identification. Any type of ID, Singpass, and some other valid documentation that shows who you. Even then make sure it the accepted forms of identification.

Also, check that you present proof of employment such as your work pass card. You need to also submit 3 most recent payslips from past months. With this, your moneylender can proceed to process and offer you the loan. Provided that the lender is able to determine that lending to you involved a low risk.

To top it you need to have a steady income source. The licensed moneylenders can trust that you will repay the debt on time because you have a job.

Sign Only a Complete Contract

If you accept the conditions detailed in the loan agreement. Then make sure to only affix your signature on a complete contract. Also, make sure that your lender gives you a copy of the signed loan contract.

In the money lending conditions, it is important for you to do this. Failing to acquire a copy of the loan contract can only mean one thing. The loan taken out can be considered to be a fraudulent act. As a caution, do not sign any contract that seems to be incomplete. The contract should clearly detail the conditions of the personal loan. The repayment period of your loan should also be included as well as interests that your loan is attracting.

Should it happen that such information is omitted, make sure that you ask for it from the moneylender. Alternatively, you can choose to deal with a different moneylender.

Ask About Requirements For Collateral

Prior to taking on any loan, make a point to ask about the collateral requirements. When a loan requires collateral, it then means that you may borrow the loan. But, if you do not repay the loan, your moneylender can claim the asset/property you had presented as security. This security could be fancy jewelry or your car. You could opt to put up your home depending on the amount you wish to take out.

Know Ways Of Identifying Illegal Moneylenders

This has to be the first thing to do way ahead of applying for a quick cash personal loan. Make sure that you always check if the moneylender you choose holds a valid license. If your lender of choice is not registered, then it is best for you to pick another moneylender. A lender who is not certified is a red flag for a possible scam.

Whenever you are making a personal loan request, confirm that all your documents are given back to you. Also, remember to pick your identification papers from your lender. This is because they have no other reason to keep your private documents. When your lender wants to retain them, be cautious careful, it is likely he is not genuine. Thus it is advisable for you to look for another moneylender.

Avoid Lenders Who Might Try To Threaten

You might come across some moneylenders who will try to frighten you. Some will even treat their borrowers in a harsh way. Always, avoid dealing with moneylender’s who do such things because you merit to be treated fairly and with respect.

Summing Up

The cash loan is best for times when you urgently need to manage some financial challenges for a short period. But, the loan amount should be within your current salary. Meaning you will easily repay your loan in the next month. Always take an amount that you can repay with ease, thus you will avoid the debt spiraling out of control. Some loan options for you to consider for quick cash are payday loans, personal loans, foreigner loans and instant cash loans.

What To Do If You Run Out Of Money During Renovations?

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Are you currently trying to renovate your home for a makeover?

Making expansions for your family?

If you are currently trying to start up a home makeover, you would require a lot of money to sort everything out. You have to consider the construction work, paints, furnishings, and even expert advice to make sure your dream renovation clicks together.

Funding renovation work can be tricky, especially if you do not have much saved for it. You can check out a moneylender if they offer a personal loan you can use for renovations, also known as renovation loans. While it can help in paying the bills for your renovations in some way, you may need more funds if your construction work is still not finished.

Should you find yourself in this predicament, do not worry because here are some tips you can try out to still get your renovation done when you run out of money.

Work on critical areas first

When doing a renovation, it is important you finish key areas that need to be used first before the rest of the house should be sorted out. Tell your contractor to start working on the master bedrooms, toilets, kitchen, dining room and laundry area before undertaking the rest of the house.

Even if you may use it, the living room can be left last in your renovations because it is actually the most expensive part of the house. You can also tell your contractors to leave the decorations when you have the funds and focus on making everything work first.

Rent Out Unfinished or Unfurnished Areas

To raise money for your renovations, why not try out renting out the unfinished units of your building to others. Let the tenants of the unit continue with the renovations and purchase everything to make it work for them. When they start paying the rent, you can then continue with your other renovations. The tenant can even renew their lease to you when they fully furnished the unit and as a result, you can get a steady flow of income that could help you finish your project.

Unfortunately, doing this does have some setbacks because unfinished or unfurnished units should only have low rental rates. It may not be enough for your renovations but having it available for tenants is still better.

When your tenants leave, you can easily offer to buy their furniture so you do not need to renovate the unit when they leave.

Work with an incomplete kitchen

You do not have to have your kitchen completely functional when you are renovating your home. Focus on getting the cooker, fridge, kettles and the microwave to work in a small pantry spot for now so you can at least make small meals while the renovations are being done. Like your living room, kitchen renovations can be very expensive because you have to work with the wiring and gas lines.

Save some money first before you get this room sorted.

Seek a personal loan from a moneylender

If you are just short of finishing your work, try checking out low-interest personal loans from loan advisor to fund the rest of the project. Do not use your credit cards to settle the remaining bill of your renovations because it would just add to your problems and also increase your debt as they have high-interest rates.

Personal loans can have interest rates as low as 4.55% and as high as 8.5% so you need to research which money lender singapore and which repayment plan would work for you.

If you are considering a balance transfer, it has an interest-free period of 6 months before they include an interest rate similar to your credit card bills. When you are considering this method, make sure you will be able to pay it during the 6-month duration.

Talk to the subcontractors

Your main contractors often hire subcontractors to finish certain parts of the house, like the electricity lines, plumbing, and lighting. If you want to save some money for these parts, why not speak to the subcontractors to see if they are open to working for these parts for a smaller cost.

Contractors tend to add extra fees when they use subcontractors. If you go directly to the subcontractor to sort out one part of your renovations, you can see a big drop on your renovation bill.

Of course, before you approach subcontractors, make sure they have proper insurance because if they manage to damage your electricity lines or plumbing, you can get the money to fix it from their business insurance. Damages caused by subcontractors are not part of your home insurance.

Extend your current loan

When you find yourself having troubles financially, it does not hurt to speak to the bank if they can stretch your renovation loan limits. If you properly tell them your situation, they may be willing to extend your contract, especially if you regularly pay your loan. They may also recommend that you get a guarantor to give you a larger loan. Should this happen, you will be able to finish your project!

Check other contractors

Before you begin renovating your home, try checking out other contractors for their prices for this type of renovation. When you do have a contractor already but the prices are very high, try looking at the rates of other contractors. They may be up to finishing the work within your budget.

Of course, if you do not have enough funds, it may not be as perfect as you may like.

Conclusion

Home is where the heart is and should be a place where you can relax and forget the day’s stresses. If you decide to renovate your home, make sure you are ready for all the possible challenges you may face during the period, especially on the monetary front.

Do not immediately say game over when you find yourself short for your renovations. Check out other alternatives to save up! If you leave everything half done and half-baked, you may not be able to feel truly at home in your renovated house.