Finance

What Should You Know About Money Lenders in Singapore

No matter how good you are at managing your expenses, you would eventually encounter financial problems once you start living on your own. Unexpected expenses often occur during emergencies like getting hospitalised. Fortunately, you can easily borrow money from a licensed moneylender in Singapore at times like this. 

For most people, the idea of getting a loan from a money lendermay be a difficult decision. We are often stuck with the thinking that it is not safe and it would just cause problems once we do so. However, there are licensedmoney lenders in Singapore that are absolutely legal! They are far different from loan sharks who threaten people if they fail to pay their debt on time. The licensed ones operate according to the government-mandated laws of Singapore. The law is called the Moneylenders Act and it was recently updated last year. The Ministry of Law or “MiniLaw” is the one responsible for regulating their activities. 

Benefits of Borrowing from a Money Lender in SG

Even though you have found out that their operations are legal, you may still feel adamant about getting a loan from them. Besides, you still have the option to apply for a bank loan instead. Why do you have to choose a money lender in SG? Licensed moneylendersprovide people with loans that can be approved fast. It is quite convenient, especially for situations where you have to get extra cash as soon as possible. 

Here are more of the benefits of borrowing from reputablemoneylenders. 

  • Flexible Repayment Terms

Some moneylenders would allow you to change your repayment schedule if ever you find it difficult to pay back your loan for a particular period. They would offer you various repayment options to make it more convenient for you. You do not have to worry about harassments and threats if you happen to be delayed on your repayments because these are serious offences in Singapore. Everything would be handled professionally by a licensed moneylender. 

  • Attractive Interest Rates

Compared to banks, loan interest rates from legal money lenders in Singapore are much lower so they are more affordable. However, it still depends on the type of loan and repayment agreement. There is a 4% cap on the interest rates thatmoneylenders may offer to you. If you apply for a bank loan, then expect that it is more expensive because you are required to make a deposit first. 

  • Convenient Loan Application Process

If you have tried applying for a bank loan before, you probably experienced the long approval process. Bank loans are ideal for purchasing a car or a house because these are investments that you do not need to pay right away. However, if you are faced with the problem having to pay your loved one’s hospital bills immediately, then it would not be a good idea to get a bank loan. You need something that is fast. A loan application that can be finished within only a day. Fortunately, moneylendersprovide such services. All you need is to prepare the necessary documents, fill up a form, and they will process your application right away. 

How to Prepare When Getting a Loan from a Moneylender

If you finally have decided to apply for a loan from a legal moneylender, then you may have to prepare a few documents first. Moreover, there are essential steps to be done first before getting a loan. 

Here is a short guide for loan applications at moneylenders. 

  • Learn About the Different Types of Loan

You have to do some research and see what are the different loans available there. Some of them are:

  • Personal Loans
  • Business Loans
  • Quick Cash
  • Wedding Loans
  • Vacation Loan

Determine what is your priority to make sure you won’t be wasting your time and money when you apply for a loan. 

  • Know if You are Eligible

One way to know your eligibility is to check your credit score. It is the same as getting a loan bank, but it is easier to be eligible when you borrow from a moneylender. Their requirements for credit scores are easier. 

Your credit scores are crucial for loan eligibility because they serve as the main factor for determining your capacity to repay the loan on time. If it is high, then you are less likely to neglect your credit obligations. One way to get a good credit score is to always make sure you rarely get delayed when paying for your bank and credit loan. Thus the key to getting a high credit score is to be responsible at your financial ventures. 

  • Make Sure to Prepare the Important Documents

In any application, you will always have to prepare the necessary before you apply. This is to ensure that the moneylenderwill confirm the identity of the person. Some of these documents are: 

  • Proof of Residency
  • Employment Documents
  • CPF (Central Provident Fund) Statement
  • NRIC or National  Registration Identity Card

For some moneylenders, they base the amount of money that you can loan to your annual income. This often happens for people who are planning to get unsecured loans. 

Once you have completed all these steps, you are now ready for a loan application! Before you do, see to it that you only choose the best money lenders in Singapore. This is to ensure that you will be engaged with a reputable moneylender. 

If you need extra cash immediately, then apply for a loan at TT Media! They are one of thelegal moneylenders in Singaporeso you can trust them for your emergency financial needs. 

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