How to Determine Reliable Money Lenders In Singapore
June 25, 2018
A personal loan is an ideal solution in clearing financial hurdles for every household owner. With slowing growth in Singapore, the expectation is that commodity prices will rise, and this in turn affects your finances necessitating extra funds. Personal loans are easy to access, flexible to repay and you don’t have to worry about your bad credit score.
Legal moneylenders appreciate the fact that traditional financial institutions are reluctant to provide this kind of financing. As a result they have quickly moved in to fill this vacuum and in so doing providing reprieve to millions of borrowers. Through reliable money lenders in Singapore personal loan comparison, you can choose a reliable lender to work with and a convenient loan package.
Major Consumer Concerns on Reliable Money Lenders In Singapore
As a prudent borrower, you need to appreciate the need for caution before applying for a loan package. Some of the issues which borrowers seek address include:
This will depend on your income level. If your annual income is less than $20,000, you can get a loan of up to $3,000. With an annual income of between $20,000 and $30,000, you can borrow up to 2 month’s income.
With an income of between $30,000 and $120,000, you can borrow up to 4 times of your monthly income. Finally, you can borrow any amount if your annual income is above $120,000.
Who qualifies for a loan?
If you are a salaried or self-employed Singapore citizen above the age of 21, you qualify for a personal loan. In addition, foreigners with valid work permits also qualify if they can prove they have gainful employment.
Type of loans available
Personal loans fall into two broad categories namely secured and unsecured. Secured loans need collateral in form of a valuable asset. An unsecured loan pegs on your salary or other sources of income such as self-employment or commissions.
Who are the reliable money lenders in Singapore?
Traditional financial institutions mostly limit loan products to their customers. Legal moneylenders regulated by the Moneylenders Act 2008 are more popular due to their relaxed eligibility criteria, flexible repayment, and quick approval devoid of background checks.
What are the best rates?
These will depend on a lender but more importantly, your income level and financial needs. Based on government ruling, the interest rate is from 1% per month, and capped at 4% per month. However, you should use a loan calculator when comparing loan rates in order to know the actual amount you will be repaying in installments.
Fees and charges: You will pay a penalty for late repayment while some lenders charge a fee for early contract termination. Other charges include processing fees but these depend on loan providers.
Documentation: You need a copy of your NRIC card, CPF statement, income tax statement for self-employed borrowers, any utility bill as proof of residence, a tenancy agreement and a valid employment pass for foreigners.
When you engage in comparison of the reliable money lenders in Singapore, you will get answers to these major concerns.
Once you identify a credible dealer, you should visit its page to learn more about the company and its loan products.