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.

Why I Should Repay My Student Loan As Quickly As Possible

Why I Should Repay My Student Loan As Quickly As Possible

Tertiary education makes it possible to have access to a broad variety of careers choices. Unfortunately, although there are government grants available to students, there is a pricey toll charge for obtaining this opportunity which comes in as tuition fees. The benefits of tuition fees are often felt mostly by the students who do not have scholarships or even family members who can help them foot the bill either using their savings or CPF.

For these students, working with moneylenders in Singapore to access a student loan seems to be the best solution for them. These students’ loans, for the most part, begin attracting interest immediately upon their graduation.

The widespread tendency of avoiding debt has led many Singaporean students to instinctively want to pay off their student loans once they are able to do so. The reason for this is the fact that the more time you take to repay your debt, the more the interest it is going to accumulate. This, in turn, will mean you will be paying more in total. Therefore, when you want to make savings on interest, you will need to consider doing all you possibly can to rid yourself off of this debt.

However, it is important for you to look at the many possible ways of handling your student loan debt to help be financially wise. Listed below are some factors for you to think about when formulating a holistic and sustainable plan to help you repay your moneylender student loan.

How Debt is Affecting You

It is important for you to realize that there is a lot more to repaying your debt than money and also incurring interests. Taking on debt means that you also carry the emotional price that comes with it, which can impact people in varying ways.

Some people are comfortable taking their time to repay their debt, recognizing that the accumulated interest for the charges is an essential part of taking out loans. In contrast, there are individuals who are irritated about having their loans accumulate interest over time. This should make them strive towards repaying their debt soon as they are able to.

So, although a little debt is no big deal, and when it helps your sense of safety to an extent by knowing that you have fewer commitments, then prioritizing the debt repayment is important for both the intangible and tangible benefits it brings.

Why I Should Repay My Student Loan As Quickly As Possible

Number Crunching

Numbers are fundamental to your loan and the plan you come up with needs to be based on the math.

Below are a few questions you need to ask yourself to assist you in planning the personal loan settlement strategy:

  1. What is the total loan sum of your loan?
  2. What‘s the interest charged on the loan?
  3. What amount are you able to pay for each month?
  4. How much time will it take you to offset the loan?
  5. What amount of interest will you have paid over the whole loan settlement period?

It is essential for you to work out these particulars about your student personal loan. This is because they will have an impact on your priorities. Evidently, you need to work towards paying off your debts the minute you are able to do so as this will help you to avoid paying too much in interest.

Yet, all in all, it is rather simple to just apportion each dollar you can to pay off your personal loan. This is without taking into account what portion of your salary you will, in fact, afford to allocate to loan repayment, yet having sufficient to help you meet your other essential expenses.

Cost Of Huge Monthly Loan Installments

Having to apportion a big part of your monthly salary for loan repayment will mean that you are able to pay off your student loans a lot faster. However doing this will also give you a smaller amount of cash for taking care of other important things in life, such as insurance as well as cash savings for urgent situations.

It is important for you to have in place an emergency fund. This can typically be an amount worth of 4- 6 months’ of your expenses while you are repaying your personal loans. This way, you will be financially prepared, in case unexpected situation befalls you. For instance, should you experience a job loss, or when you go through a mishap that entails you having to pay large hospital bills, an emergency fund is able to sustain you during the difficult period.

When you do not have an emergency fund set up, you might wind up adding to your parents’ financial burdens. This is because you won’t be having enough cash flow to help you survive on during the tough period. What may well begin with good intentions could well get you into much worse circumstances than before.

Realistic Next Actions

You may begin by organizing your expenses to help you calculate the amount you will need to survive. Ensure that you set up realistic expense targets, therefore don’t put a significantly low budget for your own expenses. Even though you may do this with good financial intentions, you could end up breaking your budget for each month. This would impact your morale, together with your will to repay your debt over time.

It may be better, to begin with, a reasonable loan repayment amount for each month and then eventually increase the amount whenever you can. Possibly you will learn how to better optimize your spending, or also be rid of some recurring expenses by changing your lifestyle. Pay raises and periodic bonuses are a great way to reduce your debt, without having to “suffer” more.

There is no fast or hard of how you need to best divide your salary – each person has different priorities and needs. Even so, make a point to have an emergency fund, put in place a realistic budget for your expenses. And from there consistently yet patiently make the student debt repayments.

Help! 3 Ways To Get Emergency Cash in Singapore

Help! 3 Ways To Get Emergency Cash in Singapore

Emergencies can happen to anyone and at any time. It may be important for you to consider where you can get your quick cash from when a sudden need arises. Certainly, you would have to calm yourself first. This way you will be able to figure out a way and obtain your funds. You will be able to easily evaluate your options and find the best solution to your financial challenges.

Among the below-listed options, you may need to consider the one that would be more accessible to you.

Line Of Credit Or Credit Line

The line of credit is a pool of money readily on hand for you for easy access. Like the credit card advance, you simply need to go to your nearest ATM and withdraw the amount of money you require. This amount can be used with any intention that you have, at any time you require it.

How It Works

You will be required to visit your bank and ask for a “line of credit” or credit line. The bank will need you to give the required documents for them to assess your creditworthiness. While this is being done, you will have to wait for some days to obtain the approval.

Limitations

Although you might say that you have instant access to cash, you will, however, have to make an application and then wait for some days.

Once your application has been approved, you are issued an ATM card. This is what you will use to have access to the money on your line of credit account. You are able to borrow any cash amount without attracting withdrawal charges. However, it is important for you to recognize that you will be charged an annual charge whether the money is used or not.

You are required to have a good credit rating for you to make use of this service. This is because most banks are risk averse concerning loans. Some banks will even require you to offer collateral while other banks simply offer this loan facility to individuals who have to be their customers for a long time.

Help! 3 Ways To Get Emergency Cash in Singapore

Credit Card Cash Advance

When you get a credit card, it means that you also hold the key to accessing quick cash from all the affiliated ATMs within the island. It is important for you to be aware that all the cash you withdraw will be charged directly to your credit limit. It’s very easy; you will require entering in your one-time PIN. Please remember that you need to make withdrawals within your cash advance limit. This amount is often lower than your credit limit on your credit card.

Limitations

This service is only available for credit card holders whose credit standing is good. Meaning, that you need to be able to repay your credit card bills for the month on time.

The cash Advances are a short-term loan facility from banks. You should expect high-interest charges starting from that day you make the cash withdrawal. Cash Advance interests range from 28%-29.9% for each year.

You need to be aware that cash advance interests are compounding. That means that interest is charged on the existing balance and not on the withdrawn principal loan amount.

The more time you take in settling your cash advance, the more you will end up paying. This might also drag down your credit score as well.

Help! 3 Ways To Get Emergency Cash in Singapore

Instant Cash Loans

When you are in need of emergency cash payday loans issued from registered moneylenders are among the best options. Often times the loan process is a lot faster compared to that of bank’s personal loans.

Most loan companies in Singapore often offer short-term loans which are can be paid either each week or on a monthly basis depending on what you prefer. You can also make use of loan calculators to assist you to get an idea of the amount of money you can borrow. This will also help you know the interest charged and the monthly instalments as well as the loan tenure.

There are some moneylenders who work online to process loans. This means is faster since the process takes from 30 minutes to about 24 hours.

Limitations

You need to be very careful when selecting a moneylender. Ensure you borrow from registered moneylenders by checking the Moneylenders’ Registry found in the Ministry of Law’s official website.

Although moneylenders are helpful during emergencies, there are loan sharks who act as if they want to assist you financially. They, however, end up sucking on your finances. Discover ways of spotting loan sharks to help you avoid falling for their scam.

Conclusion

When you are considering accessibility to loans, personal loans may be your best option. When you are facing an emergency, credit cards might be used without paying much attention. And the inability to repay its monthly dues on time may well put you into further financial distress.

A line of credit requires that you have a good credit record as well as have a credit line account on hand to be able to make use of. The process of opening your credit line account can take some days. On the other hand personal loans will only take hours for you to be able to have the ready cash in your account.

When you are applying for emergency cash, ensure you learn the advantages and benefits of the options available to you. It is advisable that you shop around for a moneylender that will offer you the best solution even with the pressure the urgent situation may have.

And regardless of what the reason for your payday loan may be, make certain that you take the time to read all the conditions and terms to avoid making mistakes. Although there is an urgent need for money, you should not allow this urgent need be the cause of your financial ruin.

In addition, it’s still suggested that you keep emergency funds. Although it is helpful to get ways for borrowing cash, having ready money savings is certainly a lot more helpful for you.