A Checklist For Your Private Money Lender Loan Application

Getting a loan from a bank is a lengthy process. This makes going to a private money lender in Singapore a much more convenient option. Loans from money lenders have fast approvals and quick disbursements. This makes them ideal for urgent financial problems. You can use your fast loan to settle medical bills, settle some debts, or use for some other emergency.

Due to personal loans are unsecured loans, they attract more interest relative to car loans or home loans. As such, it is quite difficult to obtain personal loans from most lending institutions.

The nature of personal loans puts the money lender at a slight disadvantage. To secure their interests, the money lenders have certain requirements that you must meet to qualify for a loan. On the other hand, you as the borrower should check out the money lender. You have to make sure that the lender is licensed. You have to ensure that they are not charging you fees that are not legal.

If you are new to the borrowing game, these and other aspects are what you should look at before applying for a loan.

Tenure Of The Loan

Loan tenure refers to the length of time you are given to repay a loan. For banks, a personal loan has a tenure of at least 12 months. The idea behind this period of time is so that they can get the full interest they will charge you. Failure to pay up after the 12 months accrues more interest. Fully paying off the loan before the 12 months are up attracts sanction.

As such, going to a licensed money lender is a better option. They offer unsecured loans at low-interest rates, as set by the government. If you miss a repayment, you are charged interest on the late payment. Also, if what you have in mind is a short-term loan, a private money lender in Singapore is the best for your type of situation.

Charged Interest

Some money lenders advertise an interest rate on their website. Those published rates tend to differ from the actual rates they charge. If you have an annual income that is less than S$30,000 your interest should be calculated with the Normal Interest Rate. This means that you are charged a maximum of 4% interest on your loan. This is on a monthly basis.

Some lending institutions calculate interest using the Effective Interest Rate (EIR). This refers to the real interest you are to pay for borrowing money from them. With the Effective Interest Rate, you could be charged interest anywhere between 20% – 40%. Before you borrow money from any one money lender, compare their interest rates first.

Always ensure that you check the advertised interest rates against the actual interest they charge. Some lending sites may have an EIR that is more than the published rate. This is because the EIR is calculated at a compound rate. For private money lender in Singapore, you shouldn’t get an interest rate more than 4% per month.

Fees And Terms

Apart from the interest, you are charged, there are other fees you will be required to pay. These charges include:

  • Administrative fees
  • Processing fees
  • Cancellation fees
  • Loan origination fees
  • Late repayment charges
  • Default Fees
  • Prepayment Fees

These fees and charges should be stated in the terms and conditions prepared by the lending institution. Request for them to work out the fees that applies to you. Make sure you read the terms and conditions thoroughly before signing anything. The terms and conditions are a binding contract once you sign. Signing the contract means that you accept the terms and all fees applicable to you.

Loan Eligibility

If you apply for a loan at a bank, they will request your credit report. This request will go to Credit Bureau Singapore, who keeps all your credit information on file. If your loan application is a private money lender in Singapore, your credit information will come from the Moneylenders Credit Bureau.

All the details on moneylending activities can be found on the Moneylenders Credit Bureau. These activities include loan repayment documentation and applications, amongst others. As long as these details are with licensed money lenders in Singapore, the Bureau will have it.

Your credit history isn’t the only thing that determines your eligibility for a loan. Other requirements include:

For A Private Money Lender In Singapore, Singaporeans Should Have

  • 18 years of age and above
  • Your NRIC
  • A recent payslip, or proof of employment that is no older than three months
  • Evidence of tenancy, which could be a letter addressed to your residence. It must include your full name and address.
  • Bank statement of the account into which your salary is paid. It must not be older than 3 months
  • Your SingPass token. You will need to login to HDB or CPF for authentication

For Foreigners

  • A valid passport
  • Contract of Employment
  • A recent payslip, no older than three months
  • A work permit or Employment pass
  • Proof of tenancy or residency, which could be a letter addressed to the house
  • A recent bank statement, no older than three months

The Loan Amount You Are Eligible For Depends On Your Annual Income 

For example:

  • If you earn S$30,000 – S$120,000, you can borrow between S$20,000 and S$30,000
  • If you earn S$20,000, you can borrow S$3000

Eligibility Requirements For Banks

For Singaporeans,

  • S$30,000 annual income
  • CPF statement for 12 months past (if you are employed and earn a salary)
  • Your Income Tax Notice of Assessment for 2 years past
  • Three-month-old bank statement if you are self-employed
  • A photocopy of your NRIC

For foreigners,

  • S$42,000 annual income
  • Most recent Income Tax Notice of Assessment
  • Most recent pay slip. Must be printed and original
  • Back and front photocopies of your passport
  • Back and front photocopies of your employment pass

With this checklist, hopefully, it is much clearer to you if you are considering to seek out a money lender for a Personal Loan. If you do not have a particular money lender in mind, we have a list of the recommended top licensed money lenders with reviews for your considerations.

 

Can A Self-Employed Person Get A Monthly Loan From A Licensed Money Lender?

Singapore has one of the highest household incomes in Asia. It is actually one of the highest in the world. Singapore’s unemployment rates are low. The nation also has one of the lowest poverty rates in the world. These indices make Singapore a great place to live in. However, the income gap between workers in the nation is broad. The lower-class income earners can’t afford certain comforts on their salary alone.

Borrowing money to supplement income is a normal thing. Yet, Singapore banks and Monetary Authority of Singapore make it hard for this class to access loans as they do not want the country as a whole to be heavily in debt.

Financial services offered by the banks tend to be for a certain class of people. If you are applying for a credit card or a loan, the criteria are pretty high.

For instance, you need to earn a yearly income of at least S$30,000 to apply for a personal loan. Personal loans are probably the most common type of loan in Singapore. Your monthly income has to be at least S$2500 to apply for a credit card.

For Singaporean entrepreneurs, these conditions are stern. University graduates can rest easy. Their initial wages start from S$3000 and above. Polytechnic graduates and blue-collar workers, however, may find this difficult to afford. Their educational levels are lower than that of university graduates. Their starting wages too will be lower.

Then you take into account the fact that many young Singaporeans are becoming entrepreneurs. Entrepreneurs have it the worst when seeking bank monthly loans.

Eligibility For A Bank Loan

Before you get a loan, you have to apply for it. The banks have certain criteria you need to meet before your loan will be approved. For a typical bank, these requirements include:

For Paid Workers

  • Front and back photocopies of your NRIC
  • CPF statement for the past 12 months
  • Most recent Income Tax Notice of Assessment
  • Original, printed copy of your most recent pay slip

For Self-employed Persons

  • Front and back photocopies of your NRIC
  • Income Tax Notice of Assessment for the past 2 years
  • Bank statements for the accounts you receive payment in, for the past three months

This is just part of what is required. The requirements for self-employed loan applicants are more stringent than those for salaried workers. Banks are not very friendly with entrepreneurs when it comes to loans. When you are a start-up it is much worse. This limits your options for applying for loans. But that doesn’t mean you are totally out of options. If you are in dire need of a monthly loan, you can go to a licensed money lender in Singapore to provide you with the initial funds you need to kickstart your business ideas.

Licensed Money Lender In Singapore

Money lenders are a legal lending institution in Singapore. Due to high loan shark activity, the government made some rules to curb their activities. To legally operate as a money lender in Singapore, they have to go through training and pass a test. Passing the test earns them an operating license.

All licensed money lenders in Singapore are registered with the Registrar of Moneylenders in Singapore. They are also part of the Association of Moneylenders of Singapore.

It is easy to get fooled by unlicensed money lenders, however. No matter how hard up for cash you are, do not:

  • Reply to any SMS from a money lender. A licensed money lender will never send you an SMS
  • Give a money lender your SingPass password over the phone
  • Answer to any money lending ads on the radio or television. Licensed money lenders are only allowed to advertise on their websites and their places of business.

Getting A Monthly Loan From Money Lenders In Singapore

Despite the facelift money lending has achieved in Singapore, people are still cautious approaching them for loans. However, licensed money lenders are safe to approach. Their activities are regulated by the Ministry of Law so that your interests stay protected.

For an entrepreneur seeking a monthly loan in Singapore, you can visit a moneylender. Their loan approval rates are fast. They give you instant cash loans to settle your emergencies. They have their own requirements for loan approval, but they are more relaxed than banks. Licensed money lenders can structure loans that suit your repayment abilities as well. This keeps you from getting overwhelmed with loan repayments.

Singapore has over 160 registered money lenders. Though all of them have a few similar requirements, they also have their differences. Basically, you will need to bring:

  • Your NRIC
  • Your SingPass token to log in to CPF or HDB for validation
  • Recent proof of employment
  • Recent income statement
  • An annual income of S$20,000

If you are self-employed, not a salaried worker, you can bring your income tax returns. These should be your most recent tax returns, like the last two or three years old. These can be used to assess the loan amount that you are eligible for.

For some licensed money lenders, the absence of a credit history isn’t an issue. As long as you can prove that you can repay the loan, they will lend you the money. 

Further Options For A Monthly Loan

To ease the stress of getting a monthly loan, there are other things that you can do. If you have something for collateral, you can use it to apply for a loan. A guarantor can also make it easy for you to acquire a loan. If you have some savings stashed away, using your bank statements can help. The money lenders can work with your bank statements to give you a loan. This is if you need a small monthly loan without using your savings.

You can also approach your family and friends for a loan that you promise to pay them monthly, interest-free. If the amount is negligible, you may find that your loved ones are more than willing to tide you over the troubled times.

Although personal loans are the most common loans to take, they are one of the most expensive. Hence, before getting a personal loan, you must have a quick repayment plan in mind so as to pay back the loan in the shortest time. If you are self-employed, getting a personal loan from the bank is almost impossible. Licensed money lenders in Singapore can help you. Provided you have some proof that you can repay the loan, they will lend you the money. There are many legal money lenders in Singapore. Check out the few that are mentioned here.

Advantages Of Getting An Instant Cash Loan In Singapore

Getting fast cash to take care of emergencies is getting harder every day. Borrowing money from family and friends isn’t much of an option when they have their own financial problems to deal with. While you try to settle the tuition bills, your mortgage comes up. As you turn your attention to that, a medical problem arises. You get desperate for some fast cash, but you don’t know where to turn. The quickest thing you can do is to obtain an instant cash loan from legit sources.

Many Singaporeans do not like the word ‘loan’. It brings to mind long hours of signing documents and showing proof of employment and repayment ability. This is not far from the truth.

Acquiring loans from banks is not a fast process. There are lots of hours filling forms and rigorous background checks. The waiting period before your loan is approved is also long. By the time your loan is approved, several more financial problems have added to the one you wanted to solve. The banks don’t know how immediate your need is, and they probably don’t care.

That is why you can apply for an instant cash loan and get instant cash approval. This is possible because of the growing number of licensed money lenders in Singapore now. You don’t even have to visit them in person. Access their websites and apply for an instant loan.

Fast cash loan requests are all above board and very handy. Licensed money lenders in Singapore have websites with their phone numbers on them. Calling the number will instantly connect you to a loan officer. The loan officer will explain to you what is required, and you can send in your application. In an hour, you will get your instant cash loan.

With instant loan approval, you can take care of your financial problems as they crop up. No long queues and no stringent background checks. You don’t even need collateral for a fast cash loan.

What About My Credit Status?

Before you can get a bank loan, your credit report is checked. Credit Bureau Singapore keeps the credit information on everyone and provides it to the banks on request. If your credit report is bad, your loan application will be denied.

With licensed money lenders, your credit status isn’t a problem. You can get fast cash from licensed Singapore money lenders without a background check. Even if you have poor credit, some lenders are willing to structure a repayment plan just for you. You can repay the fast cash loan without stress, and at a pace that suits you. So, good credit or bad credit, you can get an instant cash loan from licensed money lenders.

What About Payday Loans?

A payday loan is a loan that you borrow and repay at the next payday. All loans attract interest, so you have to repay your loan with some interest attached. The good thing about an instant loan is that the interest rate is very low. While the typical loan could attract you an interest of up to 20%, an instant cash loan gets you a maximum of 4% interest. Not only do you get instant loan approval, you also get low-interest rates.

What Are The Requirements For Instant Loan Approval?

Every licensed money lender in Singapore has requirements you must meet before your instant loan approval. All of their requirements have similarities. You can visit money lending websites and see what they require for you to get an instant cash loan. Some of the requirements include:

  • Age – you must be 18 years and older
  • A valid ID
  • A minimum of S$1500 for residents and S$2000 for foreigners
  • Proof of employment not older than three months

These are just a few of them. With so many licensed money lenders in Singapore, you can look at a couple of them. Check out what they are offering, and make your choice.

Are Money Lenders In Singapore Legal?

It is perfectly legal to get instant loans from licensed money lenders in Singapore. Licensed by the Registrar of Moneylenders in Singapore, money lenders can give loans to people who need them. The Ministry of Law set down some rules and guidelines to regulate money lending activities in Singapore. To start with, they need a license to operate as a money lending company.

To get a license, money lenders must undergo training and a test. This shows that they have met the government’s requirements to work as a lending institution.

The government regulates the activities of licensed money lenders. Laws include:

  • Licensed money lenders cannot exceed a certain lending amount
  • Licensed money lenders are not to charge interests more than 4% per month
  • Licensed money lenders cannot charge you any fees, apart from an administrative fee and a S$60 for late repayments. The administrative fee is 10% of the principal loan amount, and it is a one-time payment.

Singapore Licensed Money Lenders

Licensed money lenders are your best bet for instant loan approval. Their activities are regulated by the government, and most of them operate 7 days a week. If your financial need is pressing, you can call instead of filling the online form. Within an hour of your call, you will get your fast cash.

The biggest advantage of an instant cash loan in Singapore is that it is instantaneous, no need to jump hoops and loops for an approval letter. Whatever the situation is, you can get your fast cash loan when you need it. There is no need to apply for a bank loan and never get so desperate to approach illegal loan sharks for a high-interest loan. Apply to a licensed money lender online and get your fast cash.

If you are not sure of how to get a licensed money lender, you do any of the following:

  • Ask friends and colleagues for word-of-mouth referrals
  • Read money lender reviews online
  • Look up licensed money lenders at the Registrar of Moneylenders
  • Check online for money lender websites

Make sure you shortlist a few and then contact them. Make comparisons, and approach the one you are most comfortable with. In no time, your loan will be approved.

 

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Licensed Moneylender: A Better Choice For Instant Cash Loan

Moneylending is sometimes planned or unplanned. It can be to purchase a new house, a well-deserved vacation, or to cater to an emergency occurred within the family. No matter what the reason is, at certain times, a loan from licensed moneylenders might be a better decision for you.

Unforeseen Event That Requires Instant Cash

Borrowing money in an immediate situation is common. This proves the value and the worth of a moneylending agency. You can have the amount you need in less than an hour to rectify your emergency. Only licensed moneylenders can hand over the cash that you possibly need it with fewer requirements than the bank.

Thus, in a matter of fast cash, licensed moneylenders might be a better solution to unforeseeable circumstances such as medical bills and accidents.

Chasing The Unfulfilled Dreams On Your Bucket List

You might have started building your dream house or start a minor renovation and yet, the total costs exceed the expected budget. Moneylender can grant loans of small amount quickly and efficiently without the long waiting period and difficult procedures that banks usually imposed. As long as you have the proof of stable employment and income, it is easy to get the loan granted.

Moneylending in this situation is a better choice, through this you can complete unfinished tasks that need to be done.

No Regrets, No Harassment

Licensed moneylenders are controlled by the Registry of Moneylenders and are well trained in dealing with various clients, regardless of any social status in the community. They follow a process-based protocol in handling your loan and default repayment.

If you borrow money from loan sharks or the unlicensed moneylenders, you will find yourself and your loved ones in dire situations. Avoid all that trouble by going to licensed moneylenders.

Avoiding High-Interest Charges

Unlicensed moneylenders are wolves who wanted to consume you whole. They are the people who demand too much interest since they do not practice the exact interest charges stated by the Singapore Law.

It is better to approach the licensed moneylenders and verifies them from the Singapore’s Moneylender Registry. You can also find licensed moneylenders through our website.

Keeping Your Personal Information Safe

Personal information is not free. It must be used by someone who owns it, and not by people who verify your identity. Unlicensed moneylenders are abusers; they sometimes keep your personal documents for their own personal benefit. You might find yourself in a lot of trouble and a lot of explaining to do if the copy of your NRIC or your personal information is used for illegal means.

Give An Amount That Is Right For You

Most untrusted or illegal moneylenders give you the wrong rates for your loan. Contrary to this, trusted moneylender know that you are entitled to loan a maximum four times of your annual income.

You are the best person to be the judge of your own situation on whether to approach the banks or the moneylenders for a loan but be sure, never to seek financial assistance from illegal sources or through illegal means.

 

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Licensed Money Lender Interest Rate: How Much Can They Charge

Singapore is a country with abundant services in lending money to suffice one’s financial needs. Due to this, the government wanted to protect the borrowers. These moneylending companies grant loans to debtors who fail to meet the minimum annual income requirement of banks. Hence, licensed lenders lend money with high-interest rates.

To control this, Government wants to ensure safety and security for both borrowers and lenders, new bill implemented in July 2015, with changes in the interest rates which moneylenders can enforce from the previous 20 percent to 4 percent per month regardless of the annual income and whether the type of loan is secured or unsecured.

Amidst objections by some of the 160 registered moneylending industries in Singapore, this new interest rate capped from loans has taken effect to protect the interest of the general public.

Capped For Less Than $30,000 Annual Income

Intended for Contracted Loans between 1st of June 2012 and the 30th of September 2015 where proper Disclosure should be observed. Thus, lenders are mandated by law to calculate and explain the effective interest rate of your credit, before the approval of the loan. The interest rate as what mentioned above depends on your annual income and whether it is a secured or unsecured loan.

For secured loans with not more than $30, 000 annual income, actual interest rates are 13 percent.

For unsecured loans with no more than $30, 000 annual income, actual interest rates are 20 percent.

These operative interest amounts are basically based on the regularity of installments in a one-year duration, which means that its effectiveness only reflects the actual cost of using the money for a year.

Capped For $30, 000 And More Annual Income

Intended for effective interest rate calculated from 1st of June 2012. For an annual income of $30, 000 and above, cap and interest rate should be agreed by the both parties which are the borrower and the lender. They need to agree and disregard the caps mentioned above.

Latest 4% Monthly Interest Rate Cap

Borrowers need to be aware of the up-to-date implementation of the 4 percent cap with effect from 1st of October 2015. Wherein, money lenders are restricted to a 4 percent maximum amount of interest rate per month. It is applicable regardless of how big or small a borrower’s income is, and of whether the loan is secured or unsecured. If it happened that a borrower missed repaying the loan after the due date, the highest rate a moneylender can charge is still 4% per month for each month that the borrower failed to pay.

Interest Charged Computation

The interest does not occur based on rough estimation but based on computation. The basis used in calculating is not the original principal amount upon loan approval, but the principal remaining amount deducting all the payments made.

Take for example, if a borrower loaned for $20, 000 and has paid $12, 000, only the remaining $8,000 is accounted for computation of interest. Thus, the interests lessen as the borrower pays his monthly dues.

Late Payment Interest Charge

Late monthly dues are subject to an interest charge but not based on the entire principal amount. For example, if a borrower loaned for $20, 000 and fails to pay $4,000 as the first installment fee, the lender should only compute the interest of the $4,000 as the late payment interest and not the remaining $16,000 as the remaining amount is not yet due.

What Does This Means To You As A Borrower?
Finding a licensed moneylender will protect you from crazy skyrocket interest rates that might be imposed on you by illegal moneylenders if you fail to pay promptly. Having a 4% cap means a safer and much clearer way of knowing how the interest rates work against you.

 

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What are the fees that moneylenders can charge?

Singapore government provides assistance for its people, which open opportunities for numerous registered money lenders within the country. Earlier times, financial problems encountered by Singaporeans were aided by banks. Due to the bank’s high requirement for yearly income, enormous applicants fail to pursue their loans. Today, a vast change in financial help exists, and that is the easy and controlled conditions of licensed money lenders. Regardless of your annual income, they provide loans with low-interest rates.

This certainly captured your interest but before stepping to any lending agency, make sure that you are well-informed about the fees that these money lenders can charge.

Loan Contract: Between 1st of June 2012 and 30th of September 2015

Registered money lenders serve Singaporeans under the Singapore’s Financial Ministry Law. Thus, they are not permitted to deduct any fees that are not included in the legal documents.

Loans contracted on the dates given above are charged with six kinds of fees. Here are the situations that are subjected to fees that you need be familiar with.

Late Settlement Of Due Account And Interest

A borrower must know to pay or repay on or before the stated date within your contract. Remember, your loan is paid on an instalment basis to reduce paying difficulty. Most of the time, payment is in monthly terms. Therefore, you must pay it on a monthly basis. Failure to comply and you will be subjected to a fee.

Requesting Different Terms Of Your Loan Contract

A contract is a legal document wherein two parties participated and agreed on terms before affixing their signature. As a result, what was written there is believed true and is unchangeable. In any case that a borrower request for varied terms aside from what was stated there. Moneylenders are permitted to charge the borrower for a fee.

Issuing A Dishonoured Cheque

Cheque is the easiest way for borrowers to repay their loans, plainly placing an amount and sign. Always make sure that your account is credited. Otherwise, moneylenders will charge you a fee for each dishonoured cheque that you have issued.

Failed GIRO Withdrawal From Your Bank Account As Payment

There are numerous options in repaying your loans; one of those is a deduction from your bank account. Your account must have enough amount to cater you’re the deduction of your monthly bill. If it happened that upon withdrawing your payment the process becomes unsuccessful, the moneylenders will subject that for a fee.

Redeeming Loans Early And Ending Your Contract Early

Debtors might think that early redemption of loans and fast termination of the contract is fine but you will be penalised by the moneylender unless the clause in your contract says otherwise.

Recovering Loans’ Legal Costs

When a money lender recovered your loan, there are legal documents and actions that they need to complete. These actions have legal costs, and you are subjected to additional fees.

Loan Contract: With the effect from 1st of October 2015 

A new proposal was implemented in terms of loans; therefore, there are changes and additional things that need to be considered.

Lenders are only allowed to deduct the succeeding charges and fees stated below:

Not More Than $60 Charge For Each Late Monthly Settlement

To control the interest rates that a money lender can charge, this policy is implemented that only $60 maximum charge for each month for every late payment submission.

Not More Than $10 Charge Of Loan Principal Upon Approval

When your loan is granted, see to it that a moneylender deducts only $10 maximum from your granted principal amount.

Recovery Loans’ Legal Costs For A Successful Claim

Recovery of loans undergone a due process conducted by the court hence recovery fees are imposed only after a successful claim.

With all the charges mentioned above, total charges that a money lender can impose should not exceed the principal amount of the borrower’s loan. Protect yourself by understanding the law pertaining to loan recovery process and reach out to us for a recommendation of a licensed moneylender.

 

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Want To Take Up A Loan? Consider These

Moneylenders are people or institutions who value trust among their respective clients. This kind of business was established and spread all throughout Singapore to serve you in times of financial crisis. Furthermore, the application to these financial agencies needs thorough planning and a strong objective.

Granted loan outcomes might be fast, receiving money that will help you with whatever personal purpose you might have. However, taking your first step to loan process may leave you in a great dilemma. To avoid this, here are some of the few things that you need to consider before taking up a loan.

Objective/ Purpose Of Loan

Why do you exactly need to loan? Human as we are, we need the basic things to survive: food, water, shelter, and clothing. These are the things that you consume more or less 50% of your salary.

Dreams – you’ve got things that you wanted to fulfill not only for yourself but for your family and those you care. You might want to build your dream house, acquire the latest car, open your very own business, or go on a luxurious trip. Whatever goal you have in mind, make sure that your investment of taking a year-round credit is reasonable.

Credit Rating

Distinguishing your monthly or annual income is not enough proof for a loan officer to grant your application. Take into account that your assets are to be deducted by your expenses or liabilities. If you tend to have copious credit from the bank or other agencies, you will be accredited with low credit score. Better pay them first, to avoid financial instability, and to increase your credit rating.

Other Alternatives

Preoccupied minds hardly think of better solutions. Sometimes, moneylenders’ proposition is just so enticing to think that it is the best and only option. Before approaching them, think of other ways that might solve your problems. Seek for help from people who encountered the same trouble, people who solved their problems through the aid of valuable government schemes.

Borrower’s Obligation

Money lending is not a game; it’s business. Therefore, you need to consider the obligations of a borrower and reflect if you are capable of fulfilling it. A loan contract is not only a one-word deal but pages of legal contract. Hence, you need to understand each item and the nature of loan that you are about to take: Borrow enough amounts for your need and make sure that it is within the bracket of your personal income, be well-informed about their fees and charges for late payments and other stipulated conditions, determine your due date per month, and other legal concerns under your loan.

Moneylender’s Behaviour And Communication

Registered moneylenders are trained individuals. They speak and explain things in an understandable way. Make sure that they explain your contract in details, ask if you don’t quite understand. Moneylenders need to speak in a language that both of you can easily comprehend. Making sure that you understood everything before signing any terms in a contract. Moneylenders will have to provide borrowers with a copy of the contract.

Secured Or Unsecured Loan

Singapore’s personal loan application is divided into two types: the secured and unsecured loan. A secured loan is a type of loan which uses collaterals as a form of security. Unsecured loans do not ask for collaterals yet has high-interest rate than secured loans. Whichever loan is suitable for you, it is for you to decide.

Everyone has their reasons to take a loan. The first step in protecting yourself is to get yourself a proper licensed moneylender to save you much pain in the future.

 

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Find Out If Your Moneylender Is Licensed

Singapore offers various moneylenders that will aid your financial difficulty in any situation, especially during emergencies that require instant cash on hand. But among all those, how do we differentiate licensed lenders from unauthorized loan sharks?

Here are some helpful indicators to identify illegal creditors:

Use Of Offensive Verbal Languages And Treatment

Illegal moneylenders speak and act impolitely to their clients. They behave in an unethical manner, shows that they aren’t inculcated with proper ethics and principles in dealing and addressing clients’ concerns. A credible Singaporean money lender knows that they are registered to serve the administration and its’ people. Thus, insulting and threatening borrowers will never be their kind of approach.

Retain Your NRIC Or Other Identification Documents

Unlicensed moneylenders trick debtors by retaining their personal credentials as a mortgage but use for their personal illegal purposes. Be reminded that IDs and personal documents should be in the possession of its owner. It can only be borrowed for verification purposes, but not retained even after the entire process. Here in Singapore, IDs are essential to validate your identity but do not conclude that the moneylenders are entitled to retain or use it for their personal agenda.

Inappropriate Communication Methods

Unauthorised lenders do not practice proper communications protocol with clients while trustworthy financiers contact you using their registered office landlines and addresses. Fake debtors do not use phone calls and business letter, but rather contact you through text messaging, e-mails, flyers, ads and the like. You should be suspicious on the reasons why would they address you using all those instead of the proper business communication.

Pressurise Affix Of Signature On A Blank Or Incomplete Loan Contract

One might think that these fake moneylenders are really doing their job, and serving you in the fastest speed that they can. Be careful, you might end up in a loan that you haven’t even acquired or deal with terms that you haven’t understood.

Remember, licensed moneylenders, do their job in a step-by-step process. They make sure their clients understand a complete contract and review the details, including terms and conditions before signing on the dotted line. They also give emphasis on the amount, interest rates, and modes of payment for the possible loan, to avoid errors and future delinquencies.

Hence, read and reread loan contracts. Moreover, there should be two copies produced, one for the borrower and the other to the lender. Discontinue transactions once anyone asks you to sign any incomplete documents or had not given you any copy of the document you signed.

Grant A Loan With Incomplete Documents

Don’t ever call yourself lucky for an approval that you know is impossible. This is a dubious act by an unlicensed moneylender. Loan processing carries on when an applicant completes necessary documents and proper screening is conducted.

Don’t be deceived by fast approval with incomplete requirements and documentations.

Hold Back A Part Of Your Borrowed Amount

After accomplishing all the documents and undergoing for interviews, an unlicensed moneylender will hold a portion of your principal amount for any reason they would like to present. This is an unethical method done by an unlicensed moneylender.

Now that you know the differences of a licensed and unlicensed moneylender, don’t fall prey into the wrong hands. For a safer loan processing experience, search on our website for the licensed moneylender best suit your needs.

 

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What Should I Do After Being Granted A Loan?

Cheers for a Singaporean loan granted. You must have encountered different processes as you applied for a secured or unsecured loan. Now that you finally have the amount that you desire, here are some tips on what to do after your loan was granted.

Count Your Money

No matter how much you trust your money lenders, you will still need to check whether you receive the exact amount for a loan. Do not forget that two pair of eyes is better than one, there might be some errors and that is why checking is necessary. It is not totally the whole amount, but it is deducted from a loan approval fee of not more than $10 of the major amount.

On-time Payments

At this point, you have finally incurred your loan. Thus, moneylender’s services have successfully rendered. It is now your time to fulfill the obligations that you have signed under the contract.

Pay your loan on or before the due date. There might be other bills that you need to think about but make sure that your credit loan is one of your priorities. Bring to mind that they entrusted you that amount knowing that you are capable of paying it at the right time.

To avoid late payment and late interest fees, stick to the idea of having a loan that you need to settle for within a year on a monthly basis.

Asked For A Signed Receipt

Be attentive, diligent and observant especially when repaying loans or any fees. Moneylenders have numerous clients and multiple transactions in a day; therefore, it is possible that there are mistakes in written outputs like a receipt. As a client, always make sure that all the information on your receipt is accurate. Check your name, the amount, the date, and the remaining balance after the payment.

Aside from that, make sure that the moneylender signed the receipt to acknowledge that he or she received the amount. Finally, keep the receipt for verification of the loan balance and other future usages.

Expect Statement Of Accounts

Statements of accounts are an update tool on your remaining loan. Always see to it that you receive them. At least once every six (6) months, your registered money lenders send it to your specified address during loan processing and verification. As soon as you receive your statement accounts, do take the time to read it and evaluate its content according to your name, accurate remaining balance and the date. If errors are found after checking, please contact your moneylender via telephone or visit their agency immediately for clarification and correction of information.

Keep Hold Of Your Statement Of Accounts And Receipt

A mindful borrower always has a safe place for him or her to save the important documents that she or he acquired within a year. Safekeeping all the documentations acquired from the approved loans or other transactions.

There might be hiccups down the road as you are completing your remaining loan payments and fees, so to secure yourself from these upcoming circumstances, retain all the receipts and statements of accounts that you have. Do not miss any bill or left out any document related to it. Take care of these files and place it in one place that it may be kept intact.

As you can see, approval of loan is not the end of the entire process. Actually, it is the beginning of a more serious obligation. Thus, you need to take it earnestly.

 

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