Getting into a financial situation where you don’t know where to turn to is very difficult. Borrowing cash from a close friend or relative can be somehow hard because you will not know when the time comes when you will have issues.
There might be times when you need to return the cash because the one who loaned you need it and you still do not have enough to give it back. In this case, it will be more practical and convenient to apply for a personal loan as this will allow you to have more flexible repayment time so you do not have to worry about one time payment and other things.
There have been a lot of reports to Singapore police and from the press that there are numerous times when someone borrowed from a friend and was not able to repay it on time, this might cause tension and issues that will affect their relationship.
Opt for Personal Loans
A personal loan will also allow you to have fixed monthly installment repayments that will be based on the agreement with the moneylending. They might sometimes provide you with options that will be easy on your budget and will allow you to handle your cash every month. They will base your monthly repayments on your salary and you might also have options with the duration on how long you can repay it.
Dealing with your finances may sometimes give you a hard time but it just takes a lot of effort and discipline. However, if you see that you are having a hard time making ends meet, you can always opt to have a personal loan in Singapore wherein you have the option to pay it in installments and budget your cash every month.
This will give you the responsibility to pay your monthly dues so that you won’t have to deal with a difficult situation financially. Moneylenders are very flexible with options that their clients are looking for.
They can offer a lot of packages that will be provided to their customers that will fit their needs and their budget. Having a personal loan will teach you to be more careful with how you spend your cash.
Understanding how Loan Sharks work
Loan sharks are those moneylenders who gives a very high interest rate to borrowers and they seem to have suspicious conditions on their terms.
They are the ones who sometimes, if not most of the time, use loan shark harassment and threats for them to collect debts. Singapore has a mandated interest rate for moneylenders and these loan sharks are charging above that mandated interest rate. They also are often times members of syndicates or crime groups.
A loan shark take advantage of the vulnerability of a person when it comes to their finances. The funds from these unlicensed lenders came from unknown sources and they are not registered with the Singapore government.
The best thing that they can offer the client or borrower is that they do not have credit checks, this is how they lure customers to borrow cash from them especially if a person has a bad credit record.
They provide a very high interest rate that is not regulated by the laws of Singapore. By the time you are lured and got a loan from them, you might end up being harassed and violated to repay your loan amount anytime and they will force you to repay.
It is very important to check if the moneylending company that you are dealing with is legit or not. Know the mandated interest rate in Singapore and if you are being offered a loan package that is not in the regulated interest rate, you might want to think twice about them.
You can do a research regarding the cash lender that you are having transactions with and make sure that you are in a licensed moneylending institution. Taking the risk of dealing with loan sharks can be very dangerous.
Are Payday lenders Loan sharks?
Payday lenders may be mistaken as loan sharks because they also offer a huge interest rate to their borrowers. However, most payday lenders are legally supported by the government.
They still follow the guidelines from the government even if they give high interest rates. There are special exclusions and provisions that are being given by the government to payday lenders. They are registered, require proof that the borrower is employed and check how much salary the borrower has.
They still study the capacity of the client to repay the loan and the cash that they offer to loan will be based on their income and profile. Loan sharks are still above the interest rate that payday lenders give their clients.
When it comes to repaying of debts, payday lenders are not using loan shark harassment and violating the rights of the borrower when it comes to collecting. They are still following the procedure of collection and if delinquency occurs they are directly reporting it to the credit bureaus hence, affecting the borrower’s credit score.
There are a lot of options when it comes to borrowing cash. Money lenders are offering their clients a variety of options that can be compared to those of traditional borrowing of cash.
They can also give packages that will fit the needs and capacity to pay of the borrower. Applications will also be like that of the traditional ones. You will just need to make sure that the lender you are dealing with is licensed and follows the standard regulation of the government.
There have been people arrested for loan shark harassment hence, close their business, they are also being fined by the Singapore police for operating an unlicensed business. It is very important to read and understand every content that a contract is consist as well as make sure that the terms are updated.
If you have been a victim, do not hesitate to share your experience to the public so that it can also be published and people will learn from it.