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Articles Tagged with: singapore

Benefits of Borowing From a Licensed Money Lender

There was a time when banks were the only option for people who wanted to borrow for their short-term needs. But nowadays, Singaporeans can borrow cash for their short-term needs from licensed businesses. These businesses do not mortgage the assets for lending. They lend cash on the basis of the monthly income of the applicant.

There were days when unlicensed businesses ruled the roost in legal lending business. However, things have changed a lot in the last few years as government has tightened its control over the lending business. Now, every business requires a license to operate this business legally. Also, government has put a lot of restrictions on businesses offering this service, on the amount they can lend as well as the interest rates and other features.

Most of the lenders lend small amounts up to 2 to 4 times the monthly salary of the applicant. The borrowed amount can be utilised for any purpose. Most of the people use it for repairing their cars, emergency medical bills as well as any other short-term needs.

However, the biggest benefit of borrowing from a regulated business is that they do not require huge number of documents to be signed. They also do not have huge number of formalities to be fulfilled before a borrower can see the amount in their account. Most of these businesses approve an application within just 30 min. The only require some minimal documents and if the documents are found in order, the amount of loan is credited to the borrower’s account in less than an hour.

The interest rates are also negotiable and one can meet the lenders personally to negotiate on the rates. They are still higher than the interest rates offered by the banks but the time taken by the banks to process a loan application does not make it worthwhile to go through bank for small cash needs.

These establishments are also often the last option for people with bad credit scores. They usually approve the legalised loan application as long as the borrower satisfies their monthly income criteria as well as some other criteria.

Overall, licensed money lender offers a great option for people in need of short-term cash.

How to get a good deal from a licensed lender

Before borrowing money from a licensed moneylender in Singapore CreditWaves, you must keep a few things in mind. First of all, you should make sure that this is the only solution available to you. Secondly, you need to understand that you have a legal obligation to fulfill the loan contract with such a lender.

Before proceeding further, make sure that you are capable of abiding by the terms of the contract. Be sure to keep in mind your income as well as different financial obligations. You should never borrow more than you can repay and remember that if you break any of the terms of the contract then you will be charged late payment fees as well as interest, which can overburden your finances.

According to Singapore law, these lenders have to explain to the borrower the terms of the loan in a language that the borrower understands and they must also provide the borrower with a copy of the contract. Before you agree to any terms, you must weigh everything carefully and only sign if you are confident that you can abide by the terms of the contract. Also, before deciding on any one licensed money lender you should shop around till you find the one that offers the best terms and who is also reputable and trustworthy.

You can borrow up to three thousand dollars if your yearly income is less than twenty thousand dollars. If your income is between twenty and thirty thousand dollars then you can borrow up to two months of your income. If your income is between thirty thousand and one hundred and twenty thousand dollars per year, then you can borrow a maximum of up to four months’ income. If your income exceeds or equal to 120,000 dollars then you can borrow any sum of money. Before they lend you the money, these lenders have to compute and also tell you what the Effective Interest rate on your loan is.

Filed under : Credit Waves, Singapore