How To Apply For a Loan With Licensed Moneylender
Having poor credit can make getting a loan in Singapore is a nightmare. Your bank might turn down your loan application or it might charge you high interests. You could consider using a personal loan. This will help you meet personal and family emergencies as well you can fulfill a money crunch.
An accredited moneylender can help you. You could consider visiting one and check if you fulfill the requirements. It could be you need money to repay a debt. Or you would like to fulfill an unexpected health issue or accidents. It could be you want to buy a new home or for other use.
In these situations, a moneylender can offer you a fitting solution. Therefore, be sure to shop around for the right moneylender.
The Application Process
Consider visiting a moneylender’s office for this process. This way their loan officers can better serve you. As well as create a plan that suits your needs. Remember that not everyone’s financial condition is the same.
Also, not all repayment scheme offered are similar. Therefore, you need to discuss the contract terms with your moneylender based on the loan type you need. You are required to submit minimum documentation. And the processing period usually is within hours.
Currently, Singapore has 173 licensed moneylenders. Certainly, you need to always confirm with the Law Ministry’s website. To be sure that their license is valid before transacting with one.
Pick The Right Money Lender
It is vital that you pick a reliable moneylender. Confirm that the lender you choose is licensed. This is before you take out a loan from them. They should hold a license issued by the authority. This will allow them to deal with financial matters.
In Singapore, financial establishments are very many. These range from legal moneylenders, banks, pawnshops. As well as credit cards when getting a temporary line of credit.
The Amount You Can Borrow
When accessing secured loans, you may get a credit for any amount. However, with the unsecured loans, you may get:
- Equal to $3,000, when your yearly income is below $20,000;
- Equal to 2 months’ salary, when your yearly income totals $20,000 and above. But below $30,000;
- Equal to 4 months’ salary, when your yearly salary is $30,000 and above, below $120,000; and
- Any loan amount, when your yearly income totals $120,000 and above.
The Minimum Tenure
Nearly all moneylenders usually offer loan amounts for a minimum tenure. This is usually a tenure of one year. When you request for a loan and then repay within six months. You could still have to bear prepayment costs. This will ensure that you adhere to the set terms and also installments.
This way the moneylenders will get the expected interests. It is for this reason that you need to explore all available options. This is always recommended before you consider applying for a loan.
It is not difficult to get the required loan amount to cover your financial needs; however, you will need to do your homework to determine the right moneylender for you. Don’t rush into making hasty decisions. Otherwise, you might end up making the wrong decision.