Looking for the right kind of assistance for our financial needs is important and necessary. While we normally consider low-interest personal loans from a bank, licensed money lending companies can also help with options such as fast cash loans, short term loans, and low interest rate long term loans.
Read on to find out more about how to pick the right licensed money lending company, complete with factors to consider during the selection process.
Take Stock of Your Financial Situation
In order to get a loan from a licensed money lender in Singapore, we must fit the following criteria:
- You must be at least 21 years old
- You must be employed or have a consistently monthly income
- You must hold Singaporean citizenship or permanent resident (PR) status
We should also consider these questions before committing to a loan:
- How much money do I need?
- What do I need this money for?
- Do I have the ability to pay off this loan within the contracted repayment period?
These factors determine the type of loan legally viable to us.
We should also consider our financial needs in order to decide between taking a fast cash loan, a short term loan, or a long term loan. The first option is best for immediate emergencies, while the last option provides a larger sum of money to be paid off over a longer period of time. Only ever borrow an amount you are sure can be repaid.
What to Consider when Selecting a Licensed Money Lender
Looking up licensed money lenders by conducting a search on the internet using search terms like “moneylender near me”, or “moneylender near Rochor” to narrow it down. Being specific about our location helps us find options closer to home.
Here are some key details to look out for when selecting a licensed money lender.
Listed on the Singaporean Ministry of Law’s Registry of Moneylenders
Legal money lenders in Singapore must adhere to the rules and guidelines outlined in the Moneylenders Act. The Registry lists legal money lending companies, their licence number, their approved place of business, and their contact information.
Only Specific Interest Rates and Fees Can Be Charged
Singaporean money lenders can only charge 4% interest or less. Meanwhile, late repayment fees cannot exceed $60 each month, and loan approval fees or service fees cannot exceed 10% of the loan principal. Conducting research for the best interest rates and fee terms will help with getting a better loan deal.
Loan Terms Are Always Documented
When taking out a loan, a moneylender’s loan terms are agreed upon by both parties using a legally binding written agreement. The repayment terms can be flexible – negotiate options for settling financial obligations in the event of loan servicing difficulty.
Reasonable Application Process and Approval Time
Some lenders allow online loan applications and expedited approval time on top of having a simpler application process. Select a money lending company that’s easy to work with and nearby to enjoy the comfort and convenience of visiting their physical office when needed.
Good Reputation and Reviews
Searching for “moneylender near me” or “moneylender near Rochor” will show money lenders that have an online presence. As consumers, we should do our due diligence and research to look for reputable and credible money lending companies. Good money lenders will usually have positive customer reviews.
Before you go, remember that licensed money lenders must meet you in person to verify your identity during the loan application process. They must also explain the terms and conditions of the loan before approving it.
Stay vigilant and only borrow from legitimate financial institutions like banks and licensed money lenders to protect yourself and your loved ones.