The 4 Different Types of Loan You Can Apply In Singapore

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Today, financial woes have become a very common occurrence for most people. Unless you belong to the less than 1% ultra-rich in your country, then you are very susceptible to encountering financial difficulties.


That is how competitive and difficult life has become. Even if we work our hardest, there will be times when our savings aren’t just enough to fund a medical emergency or a once in a lifetime financial opportunity. And in most cases, we are left alone with no help in dealing with the crisis.


Fortunately, money lenders were introduced to help people deal with their financial difficulties. With the help of a licensed money lender, you will be able to borrow a certain amount of money that you can use in solving your current predicament.

 

However, not all people are qualified to borrow money. In Singapore, there are certain requirements that one needs to qualify to apply for a loan. First, they must have the ability to pay the loan such as having a stable job or source of income. Second, they must have sufficient documents to prove their identity and residence in the country. And in some special loans, there may be more requirements to qualify.

If you are interested in learning more about the loans in Singapore, then this article from our expert friends at Advance Planners credit will surely be of great help.

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What are the different types of loans that you can apply to in Singapore?

To address the different types of financial difficulties that citizens encounter in their daily lives, the Moneylender Act was established to regulate the practice of money lending in Singapore. And through the act, different types of loans were developed to provide versatile solutions to different financial needs.

1. Payday Loans

Payday loans or Salary loans are the most popular and common types of loans that people apply to nowadays. As the name suggests, payday loans or salary loans are loans that are taken against your incoming salary. Payday loans are designed to assist those people that entirely depend on their salaries to sustain their daily lives.


Payday loans are short-term loans that usually last from 1-6 months. And because of the nature of the loan, its’ interests are usually higher compared to long-term loans.

2. Personal Loans

Personal loans are another popular type of loan that people in the country apply to. Personal loans are simply loans that are taken against your current credit standing.

 

Your credit standing is based on your assets, outstanding debts, and current income. It is like the score that financial institutions use to assess your ability to absorb the debt. Thus, the higher your credit rating or standing is the higher the chances of you getting a higher amount of loan.

 

Personal loans have no specific purpose intended compared to Salary loans. One can generally apply to a personal loan with no apparent reason. It can be used to fund a vacation, a purchase of an asset, investment or any other financial endeavors. Moreover, personal loans can be short-term or long-term loans depending on the amount you wish to borrow and your credit standing.

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3. Business Loans

Business loans are loans that are designed for businesses that need additional funding for their operations or expansion. The amount an owner or manager can borrow in a business loan depends on the financial performance of their business. The larger the scale of the operations is, the larger the amount of business loan they can borrow.

 

Business loans are generally long-term loans. This is because, for businesses, long-term loans are more advantageous because the lower their periodic due is, the more money they can spend on their business. 

 

Most business loans are used to fund expansions and market research. This way, the business will be able to explore potential profits while taking less risk as possible.

4. Foreigner Loan

Foreigner loans are special types of loans that were designed for foreigners. According to statistics over the years, a significant amount of foreigners that opted to stay in the country to live permanently and work encountered financial difficulties during their transition period (first few years). And since access to financial assistance is very limited for foreigners, foreigner loans were introduced to help them in their financial needs.

 

Depending on the income of the foreigner, a foreigner can borrow up to 6x his monthly salary.

How to Apply for A Loan In Singapore

Applying for a loan in the country can be fairly simple and quick as long as you have the necessary documents such as valid ID, proof of residence, and original payslips of at least 3 months in their work.

 

For Advance Planners Credit, one of the leading licensed money lenders in the country, clients can receive a response within the hour of their contact. They have a website where clients can fill up the necessary information and their loan officers would then process the application immediately. 

 

And within the next hour, their loan officer would contact the client about their possible loan options and give instructions on how they can proceed with the application.

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Things to Remember Before Applying For a Loan

As a final tip, always remember that loans are financial obligations that you will have to pay in the future.

 

Thus, always make sure that you maximize your use of the loan proceeds. If it’s for an emergency, make sure that you use the proceeds to pay for the bills. On the other hand, if it’s for an investment, make sure that your investment will be worth more than the total loan payment plus interest in the future.

 

And lastly, in applying for a loan in Singapore, always check for the legitimacy of the moneylender. There are many crooks and legitimate scammers nowadays that can sweet-talk their way to you and cause further financial difficulties for you in the future.

 

Before signing that loan agreement, do your research about the money lender’s history and verify their legitimacy from the Ministry of Law’s website.

 

Are You Confused By Debt Consolidation?

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Many Singaporeans want to make their financial situation better. If you are in a similar situation, you would like that too. It is for this reason that you consider using consolidating your debt. Debt consolidation could be the ideal way to help you. It will offer you the chance to handle your bills in one fell swoop.

Below are several tips on debt consolidation that can act a guide.

Why Debt Consolidation?

Make sure that you are clear as to why you would like to consolidate your debts. Debt consolidation can be a good choice. Especially for someone who wants to contribute smaller monthly remittances. It is also useful for individuals who want to save on interests. Eventually, this will help you get rid of your debt.

For those who can easily make large payments every month. Thus cover their interests and fees being applied by creditors. Then, debt consolidation may not be the best good option.

Are You Confused By Debt Consolidation?

What To Consider?

Carefully consider the collateral terms for any consolidation loan you request. Often these loan types include a clause regarding your home. That is if you default. Certainly, this might get you at serious risk. When the condition makes your loan repayment difficult. Always keep your home from any loan contracts. Additionally, make sure you read the fine print.

Keep the long-term future of your finances in mind. Short-term options come easily like debt consolidation. This helps you immediately reduce your bills that need to pay each month. However, think of more than this. Look at what you have to do to make the long-term financial situation looks good.

Ensure that you are clear on the difference between home equity loan and debt consolidation. Some companies guise a home equity loan as debt consolidation. Home equity is where your home is put on the line to acquire a loan. This is not always the best move. Especially when your family is involved. Understand the differences and risks involved before deciding on this loan.

What To Look Out For

When your moneylenders are applying high interests to your accounts. Using a personal loan might the right option. Look for a personal loan that has good interests. A debt consolidation plan is good provided the interests offered are lower. That is when you compare what moneylenders are charging you.

Many consolidation specialists provide home equity loans. However, they do not offer these products. When you use your house as a security for a loan. Then you are getting a home equity loan. Such an option is not good. Unless you are certain of repaying the loan on time.

Credit line or home equity loans are a good option. More so when your home is fully paid for. You could actually borrow money then use your house as a security. Get enough loan money to repay your debt. Ensure that you repay on time. The interests charged on your loan can be deducted from your taxes.

Always ensure that money you pay to your creditors through the company actually gets to them. In some cases, some agencies may fail to deliver the money. At times some of this money goes towards random “fees” rather than to your creditors. Obviously, this is a situation you would want to avoid.

Repaying Your Debts

As you make the efforts to repay debt, there are two options available. The first option is to repay all the smallest debts to start with. The second option, you tackle debts with the highest interests first. Each of the two options has a set of pros. Therefore, choose the alternative that will work for you. This will start you off on a journey to get out of debt.

Before you enter into the program. Ensure that you discuss the plans for consolidating your debt with your spouse. It is advisable that you both work together on the financial situation. This will help you to actually reduce the debt. This will also help you make your finances better. When you do not discuss things, your partner might continue to grow the debt. Thus eventually hurting both your financial situation.

Money problems will not disappear since you have taken a debt consolidation loan. This is if you do not improve your spending habits. Then you will continue getting into debt. Once you have received the debt consolidation loan. Ensure that you carefully look at your spending habits. Then make the needed adjustments to help you for later.

It is recommended that you come up with a working debt management strategy. This will be helpful when you are getting a consolidation loan. This will include getting advice from a debt counsellor. You can access a counsellor from credit counselling organizations in Singapore. Your counsellor will work with you to come up with a budget. The budget will ensure that you can afford to pay all your bills.

Do Not Fall Back Into Debts

Come up with a working budget. Do not wait for a consolidation company to assist you to make a budget. When you have control over your finances. You are on your way to better financial well being.

Be prepared to make changes to your spending habits. This is immediately after you have decided to take on a debt consolidation strategy. You need come up with better spending habits. This should also work hand in hand with your consolidation. This will help you have lasting. Otherwise, you will end up having more debt. This is even more than the debt you had earlier.

Nearly all debt consolidation loan is non-profit. People get tax breaks for firms that provide services to borrowers. This does not mean the consolidation is free. The companies offering this service will charge fees. They do need to file paperwork and pay their employees. They also have additional costs related to operating their business.

As earlier mentioned, most Singaporeans want to change their financial situation. When you seriously want to remedy your financial issues. You could start by thinking of consolidating your debt. With the above information, it will get you started off today. By using debt consolidation plan you will have peace of mind. At the same time, you will turn your finances around.

How Will Your Credit Report Impact Your Unsecured Loan Application?

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A credit report is generated by the Singaporean Credit Bureau. This report gives a summary of credit acquisition. As well as usage and repayment record. It is issued to the Bureau members. These members ask about credit status of a borrower. You can also get your credit report by approaching the bureau.

The credit report contains specific details regarding a borrower. This includes details such as a borrower’s name. As well as their profile. This is excluding their phone number and physical addresses. Data about past credit assessment is used. Also, the manner of repayment for a year is indicated too.

Any default records including the dates are in the report. Bankruptcy records for a period of 5 years after discharge are in it. All terminated and closed account records going 3 years after closure. Lastly, aggregates of credit limit allowed and outstanding balances are included.

How Will Your Credit Report Impact Your Unsecured Loan Application?

Role of Credit Bureaus

Bureaus are credit records repositories. They provide information which enables members to assess a borrower. That the risk involved in lending to a borrower who applies for loans.

Informed loaning decisions help moneylenders protect the profit margins. Even so, the bureau does not provide credit facilities. Banks, however, use this information regarding a borrower. By applying their own policies. They can choose to reject or accept credit.

Your credit report is accessible to bureau members and to you alone. The bureau members are only allowed to use it to assess credit. A written Code of Conduct regulates the access means. This has strict privacy regulations. These rules should be followed by its members.

Credit Report Data Providers

Just two bureaus have authority to offer credit reporting services. They also are permitted to run credit checks for their members. As gazetted by the Singaporean Money Authority (MAS). These are the Credit Bureau (Singapore) and DP Credit Bureau Ltd.

Associates of either of these credit bureaus can deliver a credit report. These include banks, moneylenders, and other financial institutions. Other are utility and credit card companies. The associates may also access data such as bankruptcy proceedings. They get from the public domain records.

Factors That Affect Your Credit Score

You score is computed following based on several factors. These include:

Recent applicationsMoneylenders that see several recent personal loan requests on your record. They may consider you a bigger risk. This is since you seem financially desperate. That is why you should limit the new credit you request submit.

Default – Overdue payments and late payments on your personal loans are noted here. These together with utility bills lower your score.

Usage – This refers to the amount of credit that a borrower has used. It can also be what they owe on their credit account.

Inquiries – All the new loan applications you make translate to a credit inquiry. These are then posted on your credit report. Having too many credit inquiries within a short time does affect your score.

Credit available – They get the difference between total credit limit and credit used. This will give the available credit. Having a higher availability can be good for your score.

Credit history – By having a longer credit history, shows you are more stable. This means as a borrower you are considered less risky. When your history is short, not enough information is provided. This makes it hard for lenders to assess your credit-worthiness. It is for this reason you should start building your credit early. When possible you could start after you have reached the age of 18. The report also shows the repayment conduct for a period of 12 months.

Importance Of Credit Reports

Your credit report gives a breakdown of your repayment ability. This is based on the historical data on your report. This enables moneylenders and banks evaluate your ability to repay your loan. This is should they decide to grant you credit.

Realize that it is for your own benefit. More so when you maintain a good repayment record. Overdue/non-payments and other credit defaulting are on record. This can stay on your report for many years after. This will lower your score. They might also make you not access borrowing chanced in future.

When you monitor your report, you can prevent fraudulent acts against you. This is where an individual uses your private details and rating to get credit. Although other aspects play into the getting of credit from a lender. You may greatly improve chances of getting credit. This you can do by having maintained a great repayment record. This will translate to a high credit score.

A credit score is often posted at the end of your report. This is usually indicated using a four-digit number. This is issued based on the information included in your credit report. This number can range from 1000 to 2000. Where 2000 shows the least tendency to default. The ranges in between are then set from AA to HH. Here AA shows a borrower is the least risk to lend to.

It is advisable that you examine your report at the least monthly. This way you will know the status of your credit. You can obtain this information from both bureaus. Ensure you compare the records to make sure they are correct. Your record should show the actual state of the credit history. It can sometimes happen that erroneous entries are posted. This is not uncommon for these reports. This is why you need to ensure to keep track of your report. This will ensure the accuracy of your records and rating.

How To Get Your Credit Report

You could get your credit report from the Singaporean credit bureau. Other sources are CASE offices, CrimsonLogic Services and any Sing Post branch. You will need to pay a transaction fee for the service. You can subscribe to the premium service known as “My Credit Monitor”.

This service evaluates your record on every day. It will also send you an email when there are changes to the data. By using this service, it is easy to detect changes. It will alert you to possible identity theft. Thus you can take action to prevent any major damage.

The Myth Of Licensed Money Lenders In Singapore

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Different from the popular belief that makes some Singaporeans avoid one. Legal moneylenders are out to help you through a financial crisis. Accredited moneylenders are like any other business owner.

Although its true that they want to make money through this business. They definitely do not want to do so at the expense of borrowers. To provide you more confidence in knowing loans.

The Myth Of Licensed Money Lenders In Singapore

Below are some moneylender myths. These might be stopping you from getting a personal loan when you really need one.

How To Tell apart a Legal Moneylender From An Illegal One

An authorized moneylender will ask to see an NRIC card. They might also request for other personal identity paperwork. This will be used to help them verify your identity. Even so, they should not want to retain the documents. Some of these documents are passports, driving licenses, ATM cards, work permits, or employment passes.

When the lender needs them, they can use a copy of the ID card for their file. however, they should return to you the original after checks. A few unlicensed moneylenders will slyly ask that you provide them with the SingPass password and Username.

You are not obligated to offer such details to any lender. Even then, this request is highly unusual even as a requirement.

What Makes a Dependable Moneylender

Only seek to deal with a legal moneylender. This is because these lenders have fulfilled all requirements set by law. These regulations are aimed at protecting your interests. These moneylenders will possess all the licenses and permits that prove their compliance.

To ensure that your moneylender of choice is duly registered. Always demand that they show you their registration papers. Importantly check their license number against the one shown at the Moneylenders Registry website. Do not accept only a verbal confirmation.

What Are The Different Types Of Loans?

Do realize that in Singapore there are two kinds of loans. These are unsecured and secure loans. This means that when you are considering to take out a personal loan. The one aspect you will have to think about early in the borrowing cycle. As to whether you want to pledge security for the loan.Or you do not. Collateral or security is a valuable asset. This asset rights will be signed over to the lender in place of a loan.

In simple terms, it means that in case you are not able to repay your personal loan. The moneylender can assume ownership of the asset provided as security. They can choose to sell it and recover their outstanding amount.

When there is no security needed. The loan provided to borrowers will not have security by using an asset. This is what is known as an unsecured loan. When the borrower is unable to repay it, the lender does not have the right to assume their property. However, only when a court order and direction from a judge can the do so.

What Secured Loans Are

Not all assets that an individual owns can be used as collateral for loans. The value of the asset value should be worth a lot more than borrowed amount. Additionally, it should also cover the entire interest attracted on the loan. For example, you could use your house or car. Also, other realty possession is acceptable. Once you have signed over the rights of an asset. Your lender will place the lien on that asset.

Your lender will then hold on to all the documents of the property. This also includes duly signed forms of transfer. The form will be waiting to take effect should you default your repayments.

Nearly all mainstream lending organizations like banks provide loans that are secured. This is because this decreases the lending risk of their establishment.

What An Unsecured Loan Is

Unsecured loans are loan amounts borrowed without using any assets. This asset is what a borrower pledges to help protect a lender’s investment. This is only in case they default on their payment. In such a situation, the lender’s only help is to begin legal action. This will be done against a defaulter.

In this case, the court can order a defaulter to repay the outstanding loan amount. When the borrower is declared bankrupt, the law court can order their property be sold. The proceeds can be used to settle their debts.

As such a lender still this does not give assurance. Thus they are certain the will regain their investment. This is because the borrower might have other creditors. Yet the creditors have to be repaid first.

What Are The Disadvantages And Advantages Of Unsecured Loans

Advantages of unsecured loans

  • These do not put a risk on your assets.
  • They are a quick financial solution for individuals with a lower credit score
  • They are fast to process. This is because the asset valuation checks are not as strict.

Disadvantages

  • They attract higher interests compared to corresponding amounts that are secured. This is because they should not take your assets under unforeseen circumstances.
  • These are limited depending on the amounts you can borrow. This is normally an upper limit of four times your monthly income.
  • They come with stricter repayment plans. The instalments are higher to limit the risk to legal moneylenders

What Types Of Moneylenders Are In Singapore? Are The Lenders All “Ah Longs”?

In reality, they are no many differences between licensed and unlicensed lenders. This you cannot tell instantly. However, here are a few things you could do for background checks. This is before you “sign the papers”

Prior to accepting personal loans from any moneylender. you should ensure that they have a valid license number. Confirm that their certification is legitimate. The Moneylenders’ Registry has the complete list of licensed lenders. This they do on their official website. The registry ensures it is updated each month. They place this list is there to assist customers. Borrowers use this to confirm details provided by prospective moneylenders. Therefore, remember to double check the provided list before you borrow.

Why Do Moneylenders Charge Higher Interests

Why Do Moneylenders Charge Higher Interests

Licensed moneylenders are said to charge higher interests. This is as they get compared to banks. Of importance is to understand the reason for this as they still have new and regular customers despite the higher rates. In reality, legal moneylenders have proven to be important institutions. This is because they support the lower and middle ranked population.

Moneylender Interest Rates

Since June 2012, legal moneylenders should provide loan details. Their customers need to see the computation of loan interests. This is before you get a loan. Those borrowers who make $30,000 and below annually. Their loans will attract a cap. While those earning $30,000 and above yearly do not incur any limits. Ensure you understand major points of these regulations. By doing this, you will protect yourself.

Borrower credit

Banks carry out extensive checks on worthiness for credit of borrowers. They even have access to expenditure and income details. This they get through the repayments and deposits records. Like from credit cards. However, new borrowers with no records are may not get loans easily.

On the other hand, moneylenders do not do thorough checks. Thus they lend to people with little credit records. These lenders reduce the lending risk by shortening the loan tenure. Also, they set limits on personal loans. The loan tenures are normally under six months. These lower-credit quality and smaller loan are important. With a shorter lending time, moneylenders need to increase the rates. This way they can operate their business in a profitable way.

Security and Loan type

Banks nearly all the time will offer secured loans. The banks have a high ranking as lenders. They also have tight legal documents to support. They offer large amounts of money for specific purposes. This could be for the purchase of property and renovation loans. This means banks lend out confidently. Also, they ride the large economy.

Borrowers who choose moneylenders normally want small amounts. This might be for meeting daily expenses. They could be funds for handling urgent disbursements. Smaller personal loans and other much smaller loan amounts are available. This is keeping in mind that the returns rate are high. Moneylenders also offer loans that are usually unsecured. However, they offer elaborate legal documents. In addition, they are under regulation by government agencies.

Why Do Moneylenders Charge Higher Interests

Factors Affecting Moneylender Interests

The moneylender interests will be influenced by factors like;

  1. Outstanding loan and repayment behaviour
  2. Borrower’s monthly salary
  3. Home-ownership (Living with Parents/ Own/Rented)
  4. Length of Employment and Occupation

What To Consider when getting a loan

  1. Realize that a loan contract is by law binding. This means that each of the party involved. That is the moneylender as well as the borrower. Therefore, each of the two has a part to play. Thus, each party should adhere to set conditions. These you agreed upon during the signing phase of the agreement. Failure to meet and stick to this regulation will cost you. Either party can face prosecution in court.
  2. Make sure that you fully understand the document you submit. Importantly realize there is fraudulent lender These lenders might pretend to be legal moneylenders. Be aware of the traps and tricks they oftentimes use. This way you will be able to spot one before you fall a victim. Legal moneylenders operate by providing short-term personal loans. Therefore, stay away from fraudulent agencies that can ruin your finances.
  3. Always ensure that you do an analysis of your income. Doing so will ensure certainty that you can make Soon after deciding on how much money you want to borrow. Make sure you know the repayment period. Once you have done so you can budget easily for your personal loan. Also, you get to avoid facing challenges of not repaying the premium.
  4. It is advisable that you ensure that you get a copy of the contract. This will provide you with terms and conditions stipulated for your Ensure that the loan contract is clear and you understand it. Be clear of the interests charged on the loans. Look at the options for repayment, penalties, any additional fees. Confirm about any other important formalities. These are issues that can affect you with time.

Always Look For The Best

Carefully research to help locate the best moneylender near you. This is useful because you are able to pick a reliable lender. Ensure that you only deal with lenders that accommodate your conditions. Never sign a contract unless you agree to the stated conditions. Also be clear of the terms of the loan you are taking out. When you something is not clear, be sure to ask.

Always do your research, and decide based on the findings. This will ensure you get the ideal authorized moneylender. The lender you choose should be ready to work with you. Thus you will have an easy way of meeting your short-term financial needs.

What This Means For Borrowers

Dealing with licensed moneylenders in Singapore will protect you. This is from exorbitant high interests that might come up. This you will experience when you deal with the illegal moneylenders. These lenders seem to hike their interests. This is often when you do not promptly make repayments.

A 4% interest cap means that borrowers are safer. This also makes the rates easily understood. Also be clear on how the interests charged might affect you.

What You Should Know about Moneylender Interests

It is advisable to compare the various rates offered by accredited lenders. This will help you get the ideal and most favourable deal. You will also get a loan that meets your requirements. It is not advisable to rush into getting a loan. However, unless you know the moneylender’s interest regulations. Even when you are facing an urgent situation. Ensure you compare personal loans available in the market.

Though banks have contributed to economic development in Singapore. Moneylenders have equally played an important too. They have helped sustain the daily financial needs of the lower-salaried workers. This is since living expenses in Singapore have increased. This is as opposed to career advancement and salary increments of most Singaporeans.

Should You Take A Personal Loan To Finance Your Wedding?

Should You Take A Personal Loan To Finance Your Wedding?

When you are short on funds but have a dream wedding for you to plan, you could consider taking a personal loan to fund your celebration. Between venue, menu, attire, photography, hair and make-up, and ceremonial affairs, even those weddings that come void of whistles and bells can still hit the thousands mark.

Given that you have wisely been keeping a wedding account after meeting ‘the one’, thumbs up for planning ahead! However, it can happen that the money isn’t enough or even much for your wedding.

Under such a situation, a moneylender personal loan might help you briefly however here are the pros and cons that will assist you to make the right choice.

Saying “I Do” To A Personal Loan

Normally your bid day, whether momentous or modest, it will cost you. Although you would like to count on friends and families goodwill to assist financially, this may not always be a practical approach. You may have to finance at least a part of the ceremony even when you are getting help from people around you.

Using a moneylender personal loan could be an amazing helper to sustain your wedding plans, but here are a few handy tips to help you decide if this is correct for you.

You may consider using a personal loan when you:

  • Hold stable job that will help cover repayments for the whole tenure;
  • Are in agreement with your partner on the amount you should borrow;
  • You have researched and have a costing plan for your wedding; and,
  • You have emergency money ready to cover the loans and additional expenses for 3-6 months.

However, you could skip personal loans at present when:

  • You have unstable job and income;
  • There are very many prior obligations and debts to pay off;
  • Your cash flow and savings are currently limited; and
  • The terms of the personal loan are not fully clear to you.

Given that you get a personal loan or not, remember that it’s absolutely possible for you to make your wedding a reality regardless of the budget. One thing though is for you to realize that your big day will be unique as it’s your wedding day.

Should You Take A Personal Loan To Finance Your Wedding?

Advantages of Taking a Personal Loan

Having sufficient resources for you to do your plans will give you the feeling like no other, however, you need to weigh the pros and cons for them to work for you.

  • You Don’t Have To Burden Anyone

The truth is, weddings can be stressful affairs since a huge change is occurring, in-laws getting familiar, and you are doing your best to keep everybody happy. It is a blessing that you are able to fund your wedding by yourself; you will reduce the burden off of your family and simply let them rejoice with you and with no financial worry.

  • A Day Like No Other

Weddings are truly joyous events to celebrate moreover you may want to do a little more, possibly something unusual – thus having sufficient resources can help you achieve that. Access to the much-needed cash can offer you the chance to have a magical and unforgettable wedding day.

  • Really Make It Your Own

Here is a sad reality: at times generous sponsorships are not so generous in spite of everything. Promises from well-meaning family members to assist you in paying for your wedding could come with hidden intentions.

Taking out a personal loan, on the other hand, puts you and your fiancé decisively in charge of everything thus making you the ones to make the final call on your big day. One thing to keep in mind is that you can oblige to your family requests however you don’t have to be held at ransom by this.

  • Saving Money For More Important Matters

A few people do have the cash to fund their wedding but yet they choose to take out a loan. The reason for this is because money in the bank is more valuable than the money you expect in the future. It is rather hard for anyone to actually predict what may happen in the future. Having ready cash is a much better option for some individuals than emptying your account and staying debt free.

The Disadvantage Of Taking A Personal Loan

  • Having To Put Other Key Decisions On Hold

Include your personal loan amount to all the other borrowings that you and your partner have by now accumulated over the years like car loans, education loans, and even credit card, and check whether you are in heavy debt.

When yes, you need to consider how it can affect the choices in the phase of your life. Purchasing a house as well as having children might have to get a slightly held up till your income is strong enough to manage your debt.

  • Beginning Your Life Together In Debt

The fright of having debts after your wedding day is perhaps the biggest concern for anybody thinking of using a personal loan to fund a wedding. Nobody wants to begin on a marital journey with heavy debt repayments along the way. The easiest way for you to avoid getting loaded with heavy debt to make certain that you can manage to pay for the repayments.

  • Spending More Than Necessary

Having enough cash to pay out for your wedding could lure you into extravagant add-ons and frills. By taking out a personal loan you might avoid these setbacks, by just getting the amount that you actually need depends on your wedding budget and plan.

Once you decide on getting a loan to fund your wedding, it is advisable that find the right loan for you based on your occupation and financial situation. If you are a worker or a civil servant; or someone looking for a quick approval loans types; or individuals in the lower income bracket, there is certainly a loan type perfect for you. Shop around and do thorough research to find a lender who is ready to work with you and offer you the right loan.

Where To Find Low-Interest Moneylender In Singapore

Where To Find Low-Interest Moneylender In Singapore

The reviews of moneylenders are useful for first-timer borrowers as well as those individuals who are in search of a better loaning experience. Even then, it is important that you are clear as to whether this is a foolproof method of searching for an ideal licensed moneylender.

But having different money lenders in the country claiming to each offer low interests, it can be difficult for you to choose the one who can actually assist with the finances. It’s no surprise that many Singaporean go to the moneylender review sites for them to find out the experiences and opinions of other borrowers.

What This Mean For You

In order for you to avoid being taken advantage by the loan sharks in Singapore, always make sure you obtain a personal loan from a reliable licensed moneylender only. An accredited money lender may not charge unfair interests on your loan. It is important that you realize that money lending business is based on trust, and most individuals typically become faithful clients when they are contented.

Thus the more satisfied the customers are, and then this money lender will remain in business for many years to come. We have been offering loans in the country since 1969. And over the years, the company has grown to include a long list of customers with fair rates of interest and flexible terms. Some money lenders in Singapore can offer you a peek on ways that some money lenders relate to their customers, but the actual results always speak for themselves.

Locate Low-Interest Moneylender In Singapore

Confirm with the most recent 2018 list of legal Moneylenders in the Moneylender’s Registry. In Singapore, moneylenders are strictly regulated. Their licenses can be revoked when they disobey the 2008 Moneylenders Act.

In accordance with this Act, licensed money lenders may only charge a rate of interest equal to 4 percent each month. This interest cap is valid for both unsecured and secured personal loans.

Given that a borrower has failed to pay back their loan on the arranged date, the maximum rate of interest that the money lender may charge should not exceed 4 percent on the outstanding loan balance for every lapsed month.

What this implies is that the interest has to be calculated based on the outstanding principal loan money after deducting the full amount of the payments made. When you take out a personal loan amount of S$ 11,000 and so far you have paid off a total of S$4,000, thus the rate of interest for your late payment can only be worked out against the outstanding S$7,000.

This shows that the late interest cannot consider the initial principal loan amount except for when the borrower didn’t pay anything so far.

Consequently, what will happen when you have a remaining balance but it is not yet due for repayment. Given that a borrower has taken out a loan amount totalling S$ 11,000.

When the borrower does not make to pay their first instalment amount of S$2,000, in that case, the money lender will only charge the late interest rate on the S$2,000 repayment that was not made. The outstanding loan balance which isn’t due yet cannot be affected thus it is not to be taken into consideration.

Where To Find Low-Interest Moneylender In Singapore

Benefits of Moneylender Review

Most Singaporeans think that the moneylender review sites provide them with the advantage of insight. Form this sites it is easy for borrowers to get the insight of how some licensed money lenders in Singapore deal with their customers depending on the experiences that their customers have had.

Moneylender review sites offer the borrower the guarantee that a specific money lender has excellent services as well as personal loan products. Therefore depending on the ratings and testimonials from other past borrowers, you will be able to tell how contented the previous clients were.

Then again, there are a few borrowers who will share the bad experiences they have had so that other people can know what they should expect when they opt to borrow from the particular money lender. In using these moneylender review sites, locating the best reliable money lender becomes rather fast and easy for you. However, always remember to do your research and not have to believe everything you read on the moneylender review sites.

Limitations of Moneylender Review

Just about 58 percent of respondents of BrightLocal yearly survey shared have the average star ratings are the largely a significant factor when it comes to an online money slender review site. On the whole, 84 percent of the consumers owned up that they actually trust online the reviews. However, you do not have to trust each statement written by some people that you actually do not individually know.

Review sites may not all the time give you the entire picture. Also to note is that many consumers tend to write a rating or review only when they have a poor experience. On the same note, a few consumers who have a positive experience will not be that concerned about writing feedback reports at all.

One thing worth noting is that people have very different opinions and viewpoints. What might be an annoying factor might be just acceptable to you. What one customer may rate to be 2 stars might be a 4-star for another. Therefore, when you are in search of a licensed money lender, you may have to consider taking the time research and shop around for you to get concrete details about the different lenders.

Conclusion

Moneylender reviews are valuable for first-time borrowers and those individuals who want to have a better loaning experience. Although reviews can offer you the information that you may require, it is important that you be aware that you do not have to believe everything you read in them.

Be sure to take the time to carry out your own research as well as shop around for the right lender for your financial needs. And of importance be sure to work with a licensed money lender.

Taking Personal Loans? Don’t Commit These Mistakes

Taking Personal Loans? Don't Commit These Mistakes

There are a lot of different reasons why people apply for cash loans, without knowing they are making mistakes that will cost them time and money. Even then some mistakes can easily be avoided, continue reading to find out more and understand every mistake. This way you will not end up with regrets like most people do.

Taking Personal Loans? Don't Commit These Mistakes

Not Dealing With Licensed Moneylenders

Even though there are many money lending companies to be found in the net, you will need to pick a certified moneylender in Singapore. Also be sure to confirm the number of years the lender has been in operation. A company that has been in business for a long time means they will offer quality service sufficient to keep them in business.

Scanning The Stipulations And Conditions

Make sure that you go through the loan conditions and understand the fine print in them. Above all do take your time. Be sure to examine the conditions as well as do note all the certain specifics that could cause you to lose money and even end up having bad credit.

Going for the First Offer

Before taking out any loan, be sure to shop around and take your time and carry out some research. Considering that you will be the one who needs the cash then shopping around will help you avoid those lenders who might take advantage of your urgent financial needs. You, however, might be considering taking loans from banks but it’ll take a lot longer because banks typically require lots of paperwork.

You could consider approaching a private moneylender who will offer you more options with repayments, terms, and interest. The money lending industry is rather competitive thus you will certainly locate the ideal personal loan that suits your requirements and ability to repay.

Not Confirming Additional Costs

When you decide to take out a personal loan, always remember to add extra fees as well as closing costs to your total amount of the amount you have to repay. Another important thing for you to keep in mind is to cautiously read the terms and ensure you ask your moneylender as many questions regarding the loan terms to ensure you understand the whole agreement.

Unaware Of Your Credit Rating

Before you think about taking out a loan, it is recommended that you check your credit rating because the personal loan approval significantly depends on it. Also, ensure that your credit rating is accurate.

Realize that your credit history is always updated by your moneylender, for that reason make certain they include all the times that you had made on time repayments. Your credit score always reflects your credit record.

With that in mind, you need to realize that there are many ways to maintain it in good standing like not taking out a big loan amount, repaying credits promptly and not failing to repay a loan. Having a good credit rating will ensure that your personal loans are easily approved and you may even get lower rates of interests.

Getting Emotional

When taking out a loan from a moneylender, it’s advisable you think prudently and not let yourself go over the top through your emotions. Don’t get too excited. Always get a loan that best suits your needs and financial status. It is not a good idea to take out a loan to help out a friend or family member.

Overlooking the Fine Prints

You need to be careful since some terms might bring additional costs to your loan. Thus avoid late payment penalties as well as prepayment penalties.

Lying About Your Information

Do not lie about your credit rating and income. Your moneylender has the means to confirm your info. When you are caught, you will be in big trouble by paying a huge penalty and losing your loan.

Not Asking Questions

It is encouraged that you ask your lender to clarify any unclear conditions. Ask away, it might actually save you on money and time. Be sure to explain to your lender about your financial state since they are likely to offer you a loan deal that serves your needs.

All borrowers have different situations, thus when there is a setback its best you let your money lender know. Don’t get scared when they try to get in touch with you. They only want to assist you to repay your loan following what you had agreed on.

Repayment

Even if you have a stable income, it’s easy for you to think that you will effortlessly repay your loan. Keep in mind that you still have a lot of bills, needs, and expenses that require your attention. Stick to your budget and promptly repay your loans.

Borrowing More Than You Actually Need

Be sure to take out a loan amount that you can repay. When you aren’t able to repay your loan, you may perhaps end up defaulting. Once you default, the interests will increase dramatically, and you could lose your property. It might also lead to your bank accounts being seized or getting closed.

Over-Extending

There are lenders who persuade their customers into extending their personal loans. When you don’t need it, don’t get excited to do so. It will only make the credit score seem bad and in the end, you’ll pay a lot more than you’d borrowed.

Not Negotiating

Most people simply accept what is presented to them by their lenders thus they don’t negotiate the terms. Borrowers should negotiate the terms to avoid being constraint financially. You should not be adding up your loan problems when getting a loan to assist with your monetary needs.

People take out loans for different reasons. They could be stuck in their budget, would like to repay the debt, go on a vacation or settle a medical bill but all require extra cash. It’s tempting to have extra cash, but don’t open a loan when you actually don’t need it. Follow your repayment plan and don’t hide from your money lender. Loans are meant to help you, so don’t overuse them.

How Authorised Moneylenders Can Help You To Cope With Financial Crisis

How Authorised Moneylenders Can Help You To Cope With Financial Crisis

In spite of the reasons for choosing any loan type in Singapore, rest assured that a Licensed Moneylender will be very useful. This type of a lender has the ability to sort out your budgetary issues effortlessly and successfully.

For Singaporeans who need a cash advance, they could contact a licensed moneylender who is ready to give them the loan amount that meets their financial needs. There is a broad range of advances that are offered by a moneylender in Singapore. You may also select a plan for your loan advance and ensure that you repay the cash back on time. Even so, when you are planning to take out the payday loan, be sure you contact a legal moneylender for assistance.

Moneylenders Have Their Parts To Play

Licensed moneylenders are more trusted since they hold a legal permit thus assuring people that their dealings are legitimate. Most of them have the capability to offer great cash advance deals together with great repayment plans to their customers. They also help people have access to credits when the need arises.

The services offered by the payday loaning companies are of the highest quality, and the manner in which the clients are dealt with is an additional reason why people take loans from these lenders. They also securely keep their client’s information confidential and never disclose it to anybody.

Moneylenders in Singapore are renowned for offering different types of cash advances from the personal loan, home loan, remote advances as well as fast cash to people.

Benefits Of Borrowing

The benefit of borrowing credits from licensed moneylenders in Singapore is the flexible repayment options for the loan. The interest rates offered by the money lending organizations are focused, thus an individual can secure the perfect arrangement for their individual credit advances. Fast, the proficient loan processing is a part of the watchwords for the process example of the money lending associations in the city. Their dedication to their work is what helps in keeping their customers fulfilled and happy.

It is possible for Singaporeans to apply for personal loans by submitting an application form online to start with. After the essential checks have been made by your moneylender, there are several documents that you have to get checked by the lender to help in the processing of their loan application.

Importance Of A Role Of A Legit Moneylender

The main focus of the association of moneylenders in Singapore is to keep their procedures as straightforward as possible. Their aim is that it does not confuse the client when applying for the advance. Apart from the online method, there is also round the clock customer assistance accessible to their customers.

The licensed moneylenders help their customers and also offer them the essential data regarding the credit. In additional they help to clarify the questions and inquiries concerning the loans offered and their repayment options.

The most important thing is if you have approached an approved moneylender, then you won’t need to get stressed over the steadfast quality and legality of their operations. Be sure to confirm with the Law Ministry’s website whether the moneylender is licensed as there are loan sharks in the country who outrightly misuse the identities.

Help From Licensed Moneylenders for Your Budgetary Emergencies

Everyone comes across budgetary troubles from time to time. Once in a while, the needs are not urgent, and you could be able to get an additional job to afford yourself a decent living. At times, you may be able to look for assistance from your loved ones.

On some occasions, you are more likely unable to see an easy method for you to find a solution. On these events, finding a legal moneylender may be a decent option for you.

A moneylender is a company that holds the assets in addition to experience to provide instant loans to Singaporeans from all income levels made to suit their ability to repay. These lenders have the capability to lend you cash for various reasons and needs. Some lenders include additional assets for occasions, crisis car repairs or even pay your bills.

Individual loans are available to help you meet your daily needs. Just complete the loan application and expect your approval. The loan approval is usually fast with just confirmation of pays and personal information required.

Repayment plans can be different, given your ability to repay and the detailed organization’s provision. Licensed moneylenders will attempt to give you a repayment plan so that you are not left in debt and that the situation does not persist long enough to give you the feeling that you’ll never escape commitment.

How Authorised Moneylenders Can Help You To Cope With Financial Crisis

Moneylenders often handle the low-income credits, thus offering you the amount that you require an affordable repayment plan that you can repay with ease. Essentially, they are helpful when you are worried that you may not be able to get a loan because of your poor credit.

Moneylenders make their loans just suitable for your ability to repay, and not based on your history of the payday loan repayments. This type of loan can also be advantageous, thus helping you to improve your bad credit.

Instant cash loans are a moneylender’s claim to fame. Having a short-term loan, you will need to make several instalments before you can repay the loan. Small payday loans are an appropriate way to extend your expenditure when the paycheck falls short. These types of credits are at times known as payday advances. This means that the money is loaned to you with the aim that you will manage until the time when the next paycheck arrives, and also the time you will have to repay the advance.

For all types of loan that you may need, not considering whether it’s additional cash for something amazing or simply some small amount to help you cope before the next payday comes. A moneylender can work with you to help you find a loan that meets your needs. Make sure you confirm the accreditations of every moneylender that you’ll work with. Also be sensible on the amount of money you take and how fast you can repay it.

What You Should Know About A Licensed Moneylender

What You Should Know About A Licensed Moneylender

A moneylender may be described as a person or group that is able to offer small types of personal loans to individuals or groups that need financial help but at high-rates of interest.

These lenders typically offer personal loans to Singaporeans who have a very legitimate financial need. And when borrowers delayed the repayment, they don’t take inconsiderate actions for instance harassment of their customer but instead, they usually send reminder notices.

What You Should Know About A Licensed Moneylender

In Singapore, legal moneylenders are confirmed by the Law Ministry.

Types Of Loans

– Secured Loans

It’s important that you realize that for you to access a personal loan, the item you put in as collateral needs to be valued at more than the loan amount you wish to take out plus the interest amount that will be charged on the loan.

Once you have signed over your rights of your pledged items, your lender will keep its titles in addition to the transfer forms. They keep them nearby in case you don’t follow the agreement and failing to make payments on the borrowed amount.

When it happens that the worth of your item declines under the outstanding sum remaining, the lender may demand a one-time payment to cover the difference. Secured personal loans often come with rather lower interest rates.

Unsecured Loans

This loan type allows you to borrow a certain amount using only a promise to protect the moneylender’s investment in case the borrower defaults. To obtain this loan type no assets are required and the moneylender may only have a lawsuit which involves court procedures against the debtor. The court can then make the defaulter repay the outstanding loan amount.

When they don’t have the required loan amount, an order may be placed to sell their property to help settle the loan. However, this doesn’t guarantee the moneylender that he’ll get the entire investment amount back.

Benefits Of Choosing A Licensed Moneylender

  • These types of lenders will not harass borrowers from the moment they start the entire loan application procedure to finish. In Singapore, licensed moneylenders operate following the guidelines set by the government. Failure to adhere means that they risk legal actions such as revoking of their business licenses, fines, etc. Due to this, the lender’s repayment schedule is always reasonable.
  • Moneylenders always have affordable interest rates. Licensed moneylenders have to stick to the government issued regulations. The process of determining the amount of loan money you are qualified for is standardized.
  • When working with a certified moneylender, the waiting period before the loan requested is approved can be notably shorter. This usually happens within a few days. The lenders will not be focused much on a borrower’s credit history. The moneylender process of borrowing a personal loan is incredibly efficient.
  • The licensed moneylenders have a legitimate permit of operation, registered landline and a physical office where you can acquire extensive information or even go to when authentication or confirming of personal information is needed for you to be qualified for a loan. As a result, you will not require giving the lenders access to your own SingPass Login in particular since it holds sensitive information about each citizen in Singapore.
  • The Moneylenders’ Registry in Singapore has stringently set rules of how moneylenders can carry out advertising for their financial services to the community. The moneylenders have a specific way through which they are able to communicate with their customers. It is a requirement by law that there should be physical office present for potential borrowers to visit given that they would like to make any queries. In addition, when you ever get an advertisement SMS from any approved moneylender, it is your right to report the number to Moneylenders Registry.

Things To Keep In Mind Before Borrowing From Licensed Moneylenders

  • Before you visit a licensed moneylender it is important for you to consider other alternatives available that can help you access the finances. Some options like government agency schemes are available.
  • Recheck the stipulations of the loan contract you are about to enter into with your licensed moneylender because usually, agreements bind people. Evaluate whether you are able to follow the terms when you consider your income along with your financial obligations. And above all only borrow the amount that you need and don’t get excited by the large amounts that you won’t be able to repay.
  • Ensure that you fully comprehend the conditions of the loan agreement and in particular how you can repay your loan. Confirm the amount of time you will be required to pay back the loan. Also, confirm the interest rates charged on your loan. The moneylender should communicate the comprehensive information to you during the signing of the loan.
  • It’s recommended that you locate a moneylender who has the best terms. Don’t rush to access a payday loan before you are pleased with the conditions and terms. Remember you will be repaying thus it’s important that these terms be favourable for you.
  • Be cautious before signing any contract that has a caveat. A caveat is a notice that stops certain proceedings from being done before informing the issuer of the particular notice.
  • Be careful when a moneylender inquires about your SingPass password or even user IDs and when they keep important documents like your national ID card, work permits, ATM cards, driver’s license etc.
  • Ensure that your approved moneylender gives you a payday loan with sufficient information. They also have to follow the right processes of lending.

Ensure that before getting a loan from licensed moneylenders, that you read as far as you can about the different laws and rules governing money lending. Such information is accessible from the Law Ministry’s website.

This way, whenever you ask for the lender’s certificate, which you always should do, you are able to judge against the details it holds with the one you got. Even though it’s rather safe to borrow from legal moneylenders, you should be cautious because you are the one to pay back the borrowed money.