Licensed moneylenders in Singapore have the authority to provide loans. These loans are then repaid within a stipulated time period. Moneylenders are very helpful on short notice, also they provide several loan types, including payday loans and personal loans.
Always ensure that your moneylender of choice is licensed and adheres to the set rules and regulations that protect both lender and the borrowers. In Singapore, unlicensed moneylenders are in essence loan sharks who will not hesitate to cheat you out of your home. They can even result to identity theft, and end up ruining you.
How Much You Can Borrow
Borrowers have the option of 2 types of loans they can access when dealing with a moneylender:
Unsecured loans will be granted to you based on your credit history or credit score, without requiring any type of collateral.
Secured loans are granted to borrowers after they present the moneylender some form of collateral. This ensures that a borrower repays their loan.
When you opt for a secured loan from moneylenders, you may get any loan amount you wish to take.
For someone opting for an unsecured loan, the following loan amounts are accessible:
- When your annual salary is below S$20,000, then you may borrow a total of S$3000.
- When your annual salary is above S$20,000 but below S$30,000, then you qualify for about 2 months income
- When your annual salary is above S$30,000 but below S$120,000, then you may borrow for a total of 4 months’ salary.
- When your annual wages total S$120,000, you may take any loan amount you want.
What Fees Are Charged
In Singapore, licensed moneylenders are allowed to charge the only the following fees, on all the loan types they offer:
When you take out a personal loan, you will be charged an amount not exceeding 10% of the loan principal you have taken.
For every month’s installment payment that is defaulted, you will be charged an amount not exceeding S$60
When the moneylender claim filed is successful for recovery of the outstanding loan amount. You will have to pay the ordered legal costs by the court
Interest Rates Charged
Since the beginning of October 2015, licensed moneylenders are to charge a maximum interest rate amount of 4%. This is regardless of the sum borrowed. The 4% interest rate is also imposed for nothing unsecured and secured loans. When you fail to make a repayment for a given month, the rate of interest on the late payment will still be 4%. This amount is only charged to the late payments.
Why Borrow From Authorized Moneylenders
In Singapore, licensed moneylenders will be able to offer you financial help. Consider visiting a lender near you to check if you fulfill the requirements. When you urgently need fast cash to repay a debt or if you wish to meet an emergency health issue or accident. A licensed moneylender can offer you a solution for these financial needs. Under such circumstances, consider shopping around to locate a suitable money lender. The lender should be willing to consider your needs and provide you with lower rates.
Since moneylenders have more flexible approval processes, it will allow you to get your personal loan within the shortest time possible. This is much faster compared to when you were to get a personal loan issued by a banking institution.
Most moneylenders will carry out minimum background checks, asking for few documents from you. By having strict interests charges set by the regulatory bodies in Singapore. Thus taking out loans from licensed moneylenders will make loan repayment a lot easier for you. This is when compared to getting loans from other money lending institutions. Below are several reasons why borrowing from licensed moneylenders may be a good idea.
As you are seeking a business, payday, foreigner or even a personal loan, a licensed moneylender will offer you the suitable package. Often this is a customized loan type to fit your specific financial needs. Owing to this you will be able to opt for the most suitable repayment plan. This also will give you the chance to decide on the loan amount that will be easy to repay every month.
In order to access a loan, you will only require basic documentation. Oftentimes this is beneficial to most borrowers. Some of the documents needed include NRIC card, income tax statements, and also your CPF statement. These documentations are easy to collect and submit to your money lender.
No Credit History and collateral required
It is among the biggest advantage of dealing with licensed moneylenders. Money lenders will not ask that you present them with any collateral or even credit history. Most times they will consider your current ability to repay the loan amount thus making it possible for most Singaporeans to get personal loans they need.
Licensed moneylenders in Singapore are a lot more flexible when looking at the conditions and terms of a loan. This is more when comparing money lenders to the banking institutions.
Most licensed moneylenders understand their client needs. They are aware of the urgency of a borrower’s financial commitments. It is for this reason that they have ensured the application process, as well as the approval, is easy. They also have the option of making an online application for a personal loan. This will, in turn, save you some time and you get the money you need fast.
How To Ensure That Advertisements Are from Licensed Moneylenders
In Singapore, licensed money lenders can only advertise in only 3 ways: These are
(1) consumer or business directories
(2) the lender’s official website, and
(3) by displaying advertisements on their business premises.
These advertisements may also be placed outside their business building.
Any other forms of advertising will not be permitted. When you receive any type of unsolicited advertisements, it is then probable that the lender is not licensed. Also, it could also mean that that lender is breaking this set restriction. This advertising restriction only will apply to licensed moneylenders.