The First-Time Borrower’s Guide to Licensed Moneylending

The First-Time Borrower’s Guide to Licensed Moneylending 26/04/2021

Regardless of how detailed your monthly or quarterly budget is, there are still unforeseen situations that might require you to take out a loan. These typically include medical emergencies, urgent home repairs and car repairs. You might also consider getting a loan when you’re moving or buying house appliances.

The traditional bank loan process is strenuous, though. There’s no guarantee that you’ll receive the money in time for your need. In this case, your best option is to approach a licensed moneylender.

All licensed moneylenders in Singapore are approved by the Ministry of Law. They can provide short-term loans to Singaporean citizens, permanent residents and foreigners who are employed in the country.

Get an overview of the moneylending process before jumping into it.

What’s the typical licensed moneylending process?

Licensed moneylending is fairly simple. You simply choose from different types of loans, based on your unique financial needs. Then, prepare necessary documents including your proof of income and employment. This will determine the maximum amount you can borrow.

  • Singapore citizens, permanent residents and foreigners residing in Singapore with an annual income of at least $10,000 and less than $20,000 can borrow up to $3,000. If your annual income is at least $20,000, you can borrow up to 6 times your monthly income.
  • Singapore citizens and permanent residents who have an annual income that is lower than $10,000 can borrow up to $3,000. Meanwhile, foreigners residing in Singapore who are in the same income range can only borrow up to $500.

What are the types of loans you can apply for?loan concept

One of the greatest advantages of borrowing from a licensed moneylender is the fact that you have many loan options to choose from. There’s a loan type for most situations.

At Capital Funds Investment, we can tailor-make a loan program based on your personal circumstances. Here’s an overview of the other loans you can apply for:

  • Debt Consolidation LoanTake care of your credit card debt with this type of loan.
  • Personal Loan: Fund any project or make any purchase you need through this loan.
  • Business and SME Loan: Get your business back on its feet through proper funding.
  • Renovation Loan: Pay for renovation projects, furniture and appliances with this loan.
  • Fast Cash Loan: Even people with poor credit history can take out a fast cash loan.
  • Payday Loan: Pay off a modest loan within the month through this short-term loan.
  • Bridging Loan: Find the balance between two large-scale transactions through this loan.
  • Foreigner Loan: Get temporary financial relief even though you’re not a Singaporean.

Discuss your options with a trustworthy moneylender to get the urgent cash relief you need.

What factors should you consider before getting a loan?

The licensed moneylending process is straightforward. Similarly, there are only four key factors that you should consider before applying for a loan:

  • Interest Rates: Even though there’s a 4% interest cap, can you still make payments on time?
  • Total Loan Cost: After adding the interest and administrative fees, is the cost still manageable?
  • Loan Tenure: How long will you pay for the loan and how does it affect monthly instalment rates?
  • Eligibility: The final factor is your eligibility criteria, which greatly depends on the annual income.

After your loan has been granted, you’re free to use it for your personal needs. Just remember to pay the loan instalments on time to avoid late repayment fees and a higher interest rate.

Also, retain all statements of accounts and receipts of payments for a clean, well-documented process.

Get the instant funds you need for your urgent situation.

Capital Funds Investment is a trusted money lender in Singapore. We tailor loan programs based on your current needs and overall financial situation. Call us today for enquiries: (65) 6281 7736.

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