A while back, it was rather hard to get loans in Singapore. But with the continued growth of the moneylender industry, more providers are ready to offer loans to eligible clients. Whether for a medical emergency or for purchasing a home, there are numerous reasons why Singaporeans require fast cash loans.
In Singapore, not all moneylenders are the same, so what do you need to consider when getting a loan? Here is a look at some useful guidelines for getting fast cash loans from a licensed moneylender in the country.
Take with you the necessary documents when applying
What Documents will you need when requesting a personal loan? You will require different types of identification. Singpass, Any kind of ID, or other documents that show proof of who you are can be accepted as identification. It helps that you submit employment proof like work pass or a past payslip from recent weeks. Most lenders are more comfortable offering you a loan once they see proof that you are trustworthy and hold a job. Lenders will be certain that you are likely to repay your debt punctually when you hold a steady job.
Know how to spot an illegal moneylender
What the first thing you should do before applying for any loan? To start with, be sure to confirm whether the moneylender is licensed. When they don’t have a license, it is advisable that you pick another lender to avoid getting scammed. When getting a loan, ensure that you get back all your documents and identification from the lender. They do not have a reason to retain your personal documentation. When they do so, it is possible their intent is not good and you need to get another lender.
Only sign a complete loan contract and get its copy
This part of the application process is very crucial. Why is retaining a copy of the loan important for you? When you don’t receive a copy of your loan contract in full, then the loan can be reasoned as a fraudulent activity. Meaning, you can be prosecuted by law. Additionally, never sign any incomplete loan contract. A contract needs to clearly indicate the loan terms, the repayment period, and the rate of interest being applied on your loan. When these details are missing, ensure to request for it or find another lender.
Ask up front about collateral.
Ahead of accepting a loan, it is advisable that you find out about the requirements for collateral up front. Why is knowing this element of lending important? Collateral implies that you can get any loan but when you decide not to repay the loan, your moneylender can claim that asset that you presented as collateral. Collateral can be any item starting with a pricey jewellery piece, a car, or a home that is based on the borrowed amount. With the amount you wish to borrow, you can figure out the item to present to the lender.
Know your loan preferences
Be sure to check the loan deals offered online before you go to your lender also confirm what competitors have to offer. You should know the type of loan you want, terms that you can afford easily, and your plan to repay the loan fast. When you are searching for a particular loan type(personal loan, car loan, or mortgage) be sure to find the right one for you. Though you will receive many loan deals in your mailbox, it is advisable that you carefully read the fine print ahead of accepting the deal.
Understand your limitations
Your moneylender should share with you different credit scores needed for an approval. Prepare in advance and request for a statement of your record and score some weeks before making your application. Why is this important? This will give you time to check for accuracy on your history and rectify any mistakes in your report. Today, lenders rely much on records of your previous usage of credit. Remember that a lower score will reduce your chances of approval. Get a loan depending on your ability to make payments that you can afford.
Make a checklist
Depending on the lending information you get from the lender, it is advisable that you make a checklist of the proper documents needed in applying for a loan. Why is a checklist useful and can it help you prepare in getting a loan? Since it will take you some time in putting together the documentation you require from your employer, creditors, and other financial resources. A checklist will help you track documents you have or don’t have yet. Keep in mind that an incomplete application is a reason for a loan to be rejected.
Things To Keep In Mind
Getting a loan when in a hurry is not a good idea. While applying for a loan, ensure to discuss the effects of events this way you’ll know when to await an answer. Since some loans may be pre-approved directly, the particulars may only be made known after some weeks have passed.
Your aim is to get a loan that you can afford to repay and outline the function of the loan. When it’s a personal loan, your lender might want to know how you’ll use it. For instance, it could be for making improvements to your home or reduce debt.
It is dangerous for your score to consistently apply for any loan you may be able to get. Having many applications will hurt your credit and destroy your ability to secure one later on.
With this in mind, remember that when you require money fast and you are despairing, that’s the moment you are most vulnerable financially. Avoid borrowing from predatory lenders and Scammers. Find out if you may get extra time to repay an expense or a bill.
Stop first to calm yourself, learn more on fast personal loans, and choose the best deal possible. Avoid moneylender’s who will try to scare you or disrespect you in any way. You deserve respect and fair treatment.