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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