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3 Essential Tips to Help Choose the Right Money Lender in Singapore

It is common for people to face a financial crisis at some point or other in time. When such a situation arrives, you might need to look for a reliable, licensed moneylender who can give good financial help when needed. He or she should offer legitimate advice and information on loan repayment schedules.
Singapore has several money lenders which can make it challenging to find the best option. If you are looking for a licensed moneylender in Singapore, it is important to consider the following aspects:

1. Credibility
Before choosing a moneylender in Singapore, you should find out the reputation of the company in the market. You should also inquire about their license so that you can rest assured that the moneylender is eligible to operate legally. You should also take into consideration the duration for which the company has been in the industry. This can be considered a reflection of company’s performance.

2. Interest rates
Once you apply for a loan, you will need to pay the interest. In Singapore, there are several moneylenders and each of them may offer different interest rates. In such a scenario, you should compare the different rates before making your final decision. Do not forget to check for any hidden fees before you sign a contract.

3. Application and approval
Applying for loan from a bank is never straightforward. Banks have a stringent process for loan approval. Especially for people with poor credit rating, it may be next to impossible to get a loan. One of the significant benefits in choosing a moneylender in Singapore is the lack of a background check. Even if you have a poor credit history, they will lend you money though you might be charged more interest.

These benefits make moneylenders one of the ideal options for people who can’t wait for loan application and approval. You simply need to analyse the terms and conditions of loan repayment so that you don’t end up struggling to repay the loan.

Search the web for more information and suggestions on choosing the best licensed moneylender in Singapore.

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All You Need to Know About Payday Loans

Payday loans are short-term loans which can be used to get through a rough patch. However, there are only a few situations where these loans truly end up being helpful, rather than becoming a burden around your neck that you end up carrying for many years. Before using a payday loan, it is important to understand the risks and benefits associated with it.

There are many options available for taking a payday loan in Singapore and knowing more about the nuances of it can help in making the correct decision. Here’s a look:

What are payday loans?
Payday loans are small loans which can be used when you are in need of quick cash for an emergency or a personal project. Often, payday loans are short-term loans for a limited amount of money. To get the loan, you might even have to write a check for the amount you are borrowing along with a fee. The check will be left with the lender so that they can cash it once you are ready to repay.

Sometimes, loans can also be extended if you are unable to repay them on their due date. You don’t usually need a good credit score for a payday loan in Singapore. Thus, it is very popular with people who are facing a temporary financial crunch.

Cost of payday loans
Payday loans can be extremely expensive if you let them drag on, as they are meant to be repaid quickly. When left unpaid, the compound annual interest rate can hit interest rates in the realm of 3 digits. For example, you might have to pay as much as a $20 fee just to borrow $100 for two weeks.

Payday loan pitfalls
The main drawback with payday loans is their cost. Because of the extremely high fees, they might not help you solve the real problem. In fact, with poor financial planning, payday loans can actually end up making things worse for you.

The payday loans can get you through a rough patch once or twice but it is not always the best option. Bouncing checks that you write to the payday loan establishment can get you into trouble. Always take into account what you are able to afford paying off and whether the situation is urgent before going forward with the application.

If you are struggling with the repayment of several different loans, you might also want to consider a debt consolidation loan in Singapore to help with repayment. Debt consolidation loans do not reduce the amount of the loan to be repaid, it consolidates all the loans into. However, this consolidation might be able to drastically help you reduce the interest rate associated with all of them. It can be considered to be similar to refinancing a loan in some ways.

Search online for more information and suggestions on how to choose the best debt consolidation loan in Singapore. You can get in touch with moneylenders and ask for quotes to choose the best loan provider at the most affordable price.

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Five Tips for Getting a Cash Loan from a Moneylender in Singapore

Even as little as a few years back, it was quite difficult to get a loan in Singapore. Fortunately, in recent years, it has become easier to get a loan due to the increase in the number of money lenders here. There can be many reasons for Singaporeans to take a fast cash loan such as paying medical bills, accidental bills, or funding a house investment, for example.

However, there are certain things you need to pay attention to while acquiring a loan from the money lender. The first thing to consider when applying for a loan is to search for a licensed moneylender in Singapore. There are unauthorized moneylenders in the market which are not recommended for getting loans from, as their rate of interest is high and failing to repay the loan may lead to severe consequences.

Here’s a look at some useful tips on getting a cash loan from a licensed money lender Singapore:

1. Necessary documentation
You will need several documents for identification purposes while applying for a loan. It will be helpful to bring proof of your job such as an ID card from work. The lender will provide you a loan when they feel you are reliable and are able to repay the loan.

2. Spotting an illegal money lender
When applying for the loan, you should find out if the lender is licensed. If they are not licensed, choose another lender and always make sure to get all documentation and identity proofs back.

3. Make sure to sign the contract and get a copy
If you don’t have a copy of the documents, your loan could be considered fraudulent. Also, avoid signing a contract that looks incomplete. It should state all the terms of loan such as the payback period and interest rates.

4. Inquire about collateral
Before agreeing to a loan, confirm the collateral requirements. In case you fail to repay the loan, the money lender in Singapore can claim whatever you have put up as collateral.

5. Mutual respect
Choose lender that treats you with respect. Never go with a money lender who intimidates you or treats you in an unkind manner.
Explore the web for more information and tips on how to find the best money lender in Singapore.

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What are Payday Loans and What do You Need to Know about Them?

Payday loans play a balancing role in the short-term lending sector in Singapore, providing temporary liquidity to those who need it. For the uninitiated, payday loans are usually a short-term loans with a higher rate of interest as compared to other loans and the dues should be paid on your next payday. Depending on the regulations of countries, you can get the payday loans online or even from storefront payday lenders.

Though payday loans are one of the most popular loans now, it also comes with a few risks. One should always weigh the pros and cons well before taking a payday loan in Singapore. Here’s a look at some of the fundamental features of payday loans to help decide if it’s suitable for you:

1. Loan size
Payday loans are only for small amounts and you cannot use it for paying huge debts. Mostly, the payday loans are used to make payments of the credit card bills and other outstanding liabilities that are of a small amount. A common loan amount for this is around $500 but can, of course, can be higher or lower depending on your need.

2. Single repayment
Unlike other loans, you don’t have the privilege of repaying in installments and the amount has to be made in one go on the next payday or with income received as a premium of social security or a pension. The due date for payment is usually 2 to 4 weeks from the issue date of loan and it is usually decided on the day of the loan itself.

3. Mode of repayment
To repay the loan, you will need to give a post-dated cheque for full balance which includes the fees as well. One can also authorize the lender to electronically debit the funds from your account on the due date.

4. Risks involved
Payday loans come with certain risks such as unable to pay the loan on the next payday, being charged with a higher rate of interest, the risk of getting in deeper debt, reduced credit scores, higher fees and an additional loan to the current loans. Thus, one should make the decision only after considering all the above-mentioned risk factors.

Explore the web for more tips on finding a reliable lender who can offer a fast cash loan with minimum risk. It is recommended that you read all the terms and conditions mentioned in the loan documents to ensure that you never get trapped in any fraudulent activities or scams. Keep browsing the web and read about loan-taking tips that can help you to stay protected from fraudulent moneylenders.

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How a Moneylender Can Finance Your Home Improvement Project

Financing a home improvement project while living in Singapore can become an overwhelming task. Whether you want to make a few simple upgrades or construct a pricey new addition to kitchen, remodeling your home in Singapore can drain up your savings pretty easily. So you must look for a loan depending on your monthly income and the scale of your project. However, going to a Singaporean financial institute can take a long time to get your loan approved. Banks analyze your credit worthiness before offering you a loan and your loan might also get rejected due to your low credit score, low income and employment history. Seeking a personal loan from a licensed moneylender in Singapore can be the best option when you are in financial crisis and need to finance your home remodeling project. Here’s how a licensed money lender can fund your home improvement project the easy way.

Licensed moneylenders in Singapore offer various types of loans such as personal loan, payday loan and even debt consolidation loan with flexible repayment tenure. The best part is that these money lenders are authorized by the government of Singapore and the whole money lending industry is guided by the laws and regulations framed by the country’s government.

•Easy application and documentation: A licensed money lender in Singapore knows the urgent financial needs of people like you. They have easy loan application process. In fact, some money lenders accept online applications through their secured website. They also have minimal document requirements and may ask you to submit income and address proof, National Registration Identity Card and tenancy agreement.

•No credit check or income limitation: A licensed moneylender will not check your credit score before approving your loan. Whatever is your income level and what type of loan you want to take for home renovation, you can easily get a loan from a lender.

•Fast Approval: Seeing the high cost of living in Singapore, it is essential to get your home improvement project completed quickly. When you apply for a personal loan from a licensed moneylender in Singapore, it might get approved within a few hours, which will help you to get your project done quickly.

To qualify for a personal loan from a licensed money lender in Singapore, here are the eligibility criteria:

•You must be a Singapore permanent resident over 21 years of age, or an expat with a valid work permit (S Pass)

•Give a photocopy of your National Registration Identity Card (NRIC)

•Provide legal proof of income such as bank statement, payslips for the last 3 months or income tax returns. If you are self-employed, you must give your income tax statements or legal proof of income.

•Expats or foreigners are required to provide tenancy agreement

•Proof of address (PUB bill or handphone bill)

No need to mortgage your house, use your credit card or look for a home loan from a bank for financing your next home improvement project. Taking a personal loan from a licensed moneylender in Singapore is best for your current home improvement project needs.

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Changes to the Moneylenders Act Set New Loan Limits for Borrowers in Singapore

The Singapore Government has passed changes to the Moneylenders Act on January 8, 2018 to prevent people from drowning themselves in a mountain of debt. Law and Finance Senior State Minister, Indranee Rajah has proposed changes to laws regulating moneylenders in Singapore. Presently, how much people can borrow loan amount is capped by their income level but they still can borrow money from different money lenders in Singapore. The new changes to the Moneylenders Act will now stop borrowers from applying for a loan if they already have high monthly debt obligations.

What are the changes?

•The amended laws are expected to start from the 4th quarter of 2018.

•People who are earning under S$20,000 a year, they can borrow up to S$3,000 in total loans from all moneylenders combined.

•People who are earning at least S$20,000 a year, they can borrow loan amount up to the equivalent to six months’ salary.

•Any money lender in Singapore will not be able to offer loans to borrowers who have reached these loan limits.

•Previously, the government had set up the Moneylenders Credit Bureau in September 2015 along with restrictions on fees and interest rates that can be charged by moneylenders.

The Singaporean government has made changes to the Moneylenders Act because it wants to stop low-income borrowers from borrowing loans from illegal moneylenders. The number of borrowers and the outstanding loan amounts have been increasing over the past three years. The number of borrowers increased from 31,000 borrowers in 2014 to 40,000 last year. It has been found that 41,000 Singaporeans made use of payday loans in the first three quarters of 2017. Seeing these increasing figures, the government now aims to assist borrowers in managing their debts in order to ensure that this number does not grow.

What borrowers can do now?
There’s only one thing that borrowers can do once they reach their borrowing limit – clear their existing debt by paying bills on time, and then apply for a loan from a licensed moneylender in Singapore.

Tighter approval requirements on moneylending business
The government has also introduced changes to the Moneylenders Act aimed at improving the transparency and accountability in the moneylending business. Money lenders in Singapore will now have to incorporate themselves as companies. They must submit their audited accounts to the Registry of Moneylenders. They will have to follow tighter approval requirements before providing loans to borrowers while also keeping in mind the new loan limit set for borrowers.