If you are in need of money while residing in Singapore, you would need to request a personal loan from a money lender singapore. The moneylender must be able to give you a variety of options which would cater to the customer’s needs. However, how can you choose a moneylender in Singapore which would give honest rates and easy payment rates? Should you consider their licenses alone? Their policies?
For first-time personal loan applications, here are some questions you need to ask yourself when you are choosing a moneylender in Singapore:
Are they accredited?
Singapore has very strict policies when it comes to moneylenders to protect Singaporean and foreign borrowers. In order to see if your prospect moneylender is licensed to operate in the country, you can check the list on the official website of the Ministry of Law.
If you are visiting one of their branches, check if they have a valid license from the Register of Moneylender Singapore as it is a proof they are allowed to operate and provide loans.
If you wish to find out more about moneylenders, you can check out social media to see testimonials from past and present customers of these moneylenders regarding their services.
How easy is the application process?
Applying for a personal loan is not as simple as it sounds because you may need to make a personal appearance, file numerous documents, and even undergo various interviews and investigations before you are approved.
Nowadays, moneylenders in Singapore now have websites that would make applications faster and more efficient. You can now also apply for various loans online, like car loans and house loans.
Applicants would only need to upload their proof of identity; employment data and others online then wait for the results. Once the application is submitted through, it may take only a few hours before the application is decided.
If you have bad credit, you may find it difficult to locate a good lender to approve your application. However, there are licensed money lending companies in Singapore that also check those with bad credits and offer means to help them bolster their ratings.
Some lenders may ask for more information and may also put their various criteria on their websites for applications, so compare their application process before you apply!
Are the transactions safe?
Like anything we do online, it is important to check whether the transaction is secure. Check if there is proper encryption used in the moneylender’s website and comes with its own firewall and online monitoring. There must also be other security features on the website throughout the application or transaction process to ensure your data is safe.
What are the interest rates?
When applying for personal loans, it is important that the interest rate offered by the lender is small and would match your budget. Take time to compare all the interest rates offered by moneylenders before you pick one that would work well for you. Make sure you also check out if there are hidden clauses on repayment and their interest rates.
Personal loans should always have low-interest rates and manageable to pay. Of course, even though some may offer very low rates that sounds like a dream, they may not be trustworthy so question it before you apply. Ask you loan advisor.
Under Singapore law, every moneylender is required to publish their effective rate of interest (EIR), or the cost you are actually borrowing for one year. Usually, secured personal loans for those with annual income under $30,000 have an EIR of 13% while unsecured loans have a 20% EIR.
If you have a higher annual income, there is no specific limit to one’s EIR so it can be negotiated between the borrower and the lender on how much it is going to be.
What extra rates do these moneylenders charge?
Under Singapore law, moneylenders can charge extra fees for:
- When there are contract changes with the customer
- When there is a default on principal repayments or interest payments
- When checks have bounced or unaccepted.
- When a GIRO deduction from the borrower’s bank failed.
- When borrower made an early repayment or closed the loan terms.
- When there are legal fees included when collecting loans.
What is their loan repayment schedules?
Before you send your application, check into your preferred loan repayment amount then see if the moneylender can offer a good repayment scheme that would match it. If the repayment scheme offered by the lender is not suited to your needs, you may have problems paying your monthly dues with them.
Try asking your prospective moneylender if they would be open to adjusting their loan repayment terms to match your capacity or have one available. If you find yourself in a bind because of the repayment scheme, the company may not be able to give you leeway on how to sort out the loan.
Pick a moneylender that would take time to listen to your questions and assist you in creating a loan package that works just for you.
Is their customer service top notch?
Of course, you cannot just depend on the site’s credibility and their license when picking a moneylender that you can trust with your personal loan application.
- Does the moneylending company guide you through the loan process?
- Do they have an online or offline hotline where you can inquire and ask for the loans?
- Are they friendly when they talk to you about your loan?
- Are they easily accessible?
Check online reviews and testimonials in social media to see if the moneylender’s customer service is very good or should be avoided.
Picking a credible moneylender should not be done haphazardly because you may end up paying more than what you actually borrowed. If you picked an unlicensed moneylender, there is a possibility you may be scammed and be put to more problems.
Before you select a moneylender for your personal loan applications, research and compare their rates with other companies.
Always consider your financial capacity and budget before you push for a personal loan because it would be quite difficult to manage when you fail a payment.