Who Is Eligible To Borrow From a Licensed Moneylender And What Documents Are Required?

In Singapore, legal moneylenders as financial institutions. They are authorized to offer loans to Singaporeans. The loans are then repaid over a given time.

Moneylenders such as those found in https://www.moneylenderreview.com/ will be very useful and helpful. They provide several loan types, which include payday loans and personal loans. Ensure that the moneylender you work with is licensed. They should also follow the regulations and rules. That has been established to protect moneylenders and the clients.

Basic Borrowing Requirements

  • The minimum age must be 18 years.
  • Income requirements: Citizens $1500 each month. And Foreigners $2000 each month.
  • The types of ID that are accepted. They include Permanent Resident (PR), Employment Pass (EP), National ID Card (NRIC), S Pass, and Work Permit (on a case by case basis).
  • Regarding business loans: The company needs to be two years after it has been registered. This is prior to applying for a loan.

What Documents Are Required

Singaporeans

  1. Residency Proof: Official mail delivered to a borrower’s address
  2. National ID (NRIC)
  3. Recent statement. This the account that the pay is deposited
  4. Current pay slip and other evidence of income

Foreigners

  1. Valid Passport
  2. Work permit, Employment pass (EP), or S Pass
  3. Contract of Employment
  4. Tenancy agreement
  5. Recent 3 months pay slips
  6. Recent 3 months bank statements. This needs to be of the bank account where your pay is credited
  7. Residency proof: Any formal mail delivered to the borrower’s address

For Business Loans

  1. The ACRA profile of the Business
  2. Recent 6 months of the business’ bank statement
  3. ACRA summary of Income Tax Reporting
  4. P&L statement
  5. Evidence of incoming funds

By law, you are obligated to meet any loan agreement. That is when you get a loan from a licensed moneylender.

The law dictates that moneylenders explain the loan terms. They should use a language that you can understand and they need to offer you a copy of your loan contract. Ensure you completely understand the contract terms. In particular look at the repayment plan. Be aware of the interests charged and also at the applicable fees.

Do consider shopping around for different moneylenders. Look for one that is the most suitable terms. You need not rush in and sign up for the loan. This is until you agree with the conditions and terms.

Consider if you can adhere to the contractual terms. Do consider your salary and financial commitments. Borrow the amount that only needs and can repay. Be aware that when you cannot meet the contractual conditions. The late repayment costs and interest fees can be a strain. That is financially for your family and yourself.

Evaluate carefully before you accept any contractual term. More so, one that allows a moneylender to put a caveat, especially on any sale proceeds from your property. That is should you fail to repay your loan. With a caveat lodged against the property. You cannot sell the property without first settling the loan in full. When the repayment amount is deducted from the proceeds. After the sale of your property. It could clear all or a portion of your proceeds.