Singapore has an abundance of lending services. In many occasions, they help Singaporeans meet their financial needs. Owing to this, the Singapore government is focused on protecting borrowers. Most money lending institutions offer different types of loans. Even then, some debtors are not able to meet the minimum bank requirements. Hence, accredited moneylenders provide high-interest loans.
Licensed moneylenders are among financial institutions authorized to grant loans. The loans they offer are often repaid in a set period. On-demand, most moneylenders will come to your aid. Even then, they will offer you different loan types. These loan types include payday loans and personal loans.
It is important that you confirm that the lender is accredited. Be sure to do this before you decide to sign up with them. The lender you choose should also follow the set regulations and rules. These regulations have been established to protect borrowers. They also protect the lenders too.
In Singapore, the illegal moneylenders are essentially loan sharks. These lenders can perpetrate identity theft and fraud. They even are well capable of cheating you out of a home. Dealing with loan sharks can end up ruining you.
What Fees Are Charged
In Singapore, moneylenders are allowed to apply following charges. These fees should only be charged on the different loans they offer.
- A fee not exceeding 10% is charged on the principal amount. This is done once you are granted a loan.
- A fee is charged for missed payments. This amount is only calculated for the month the payment has been skipped.
- Legal fees are charged for successful claims filed by a lender. This is done to help the lender recover the loan granted. Often the court will order you to pay for these costs.
What Amount Can I Borrow?
Moneylenders in Singapore offer two main types of loans. You can have access to any of the type when getting a loan. These are:
You can access this loan type after providing some collateral. This will ensure that you pay back the loan.
This loan is available based on your credit history and score. It also does not require any kind of collateral.
You can access any loan amount you want from a moneylender. This is provided you are getting a secured loan. When you choose to take out unsecured loan amounts. You qualify for the below-listed loan amounts:
- For an annual income below S$20,000, you get up to S$3000.
- For an annual income of above S$20,000 but below S$30,000. You get an equivalent of 2 months’ salary
- For an annual income of above S$30,000 but below S$120,000. You get an equivalent of up to 4 months’ salary.
- For an annual income of S$120,000. You may borrow any loan amount you need.
What Interests Are Charged
Since October 2015, licensed moneylenders rates were regulated. The maximum interests an lender can charge is capped at 4%. This is without considering the amount borrowed. The 4% interest has also been set for all loans offered by legal lenders.when you skip a remittance for any month. You will incur late payment charges. This is also set at 4%, and is only charged on the delayed repayments.
Moneylenders are required by law to show borrowers the Effective Interest Rate ( EIR). This should be done before offering them the personal loan. The set cap applies to all irrespective of a borrower’s income.
How To Ensure That An Advertisement Is From a Moneylender Who is Licensed
In Singapore, authorized lenders may only advertise using 3 ways only: These include(1) business or consumer directories (2) their official website, and (3) displaying advertisements inside their business premises. Such an advertisement may be displayed outside the business building.
All the other kinds of advertising are not permitted. Given that you receive any sort of unsolicited ads. It is probable that the moneylender is not licensed. It can also mean that the lender is breaching this restriction. The advertising restriction has been placed on licensed moneylenders in Singapore.
Why Borrow From Moneylenders
Licensed moneylenders in Singapore are in a position to help you. You may consider visiting one to check whether you meet the requirements. When you are in need of cash pay off a debt. Or that you wish to fulfill an emergency health problem or an accident. A moneylender will have a solution for your needs. In such a situation shop around to find a suitable lender. One who is ready to work with you and will offer you lower rates. Here are some reasons as to why borrowing from moneylenders is a good idea.
Customized Loan Packages
When you are in search of a payday, business, foreigner or personal loan. A legal moneylender in Singapore has the fitting package. This will be customized for your particular financial needs. Following this, you are able to choose the suitable payment plan. This will allow you to decide on the amount you are comfortable to contribute monthly.
You only need basic documentation in order to apply for loans. This is very beneficial for borrowers. This will include income tax statements, NRIC card, as well as CPF statement. These documents are easy to put together and present to your lender.
No Credit Record or collateral needed
This is one of the biggest benefits of licensed moneylenders. These lenders will not require that you submit collateral or credit history. They will mostly consider your present ability to pay back the loan. This makes it possible for many Singaporeans to access loans.
In Singapore, the licensed moneylenders are much more flexible. This is when it comes to the conditions and loan terms. This is when money lenders are compared to banking institutions.
Licensed moneylenders are understanding to their clients. They know the urgency of your financial commitments. This is why they have made the application process and approval easy. This also has given you the option of applying online for a loan. This translates to saving you time and you get the cash fast.
Therefore, it is easy and simple to obtain a loan to meet your financial needs almost immediately. Please do not hesitant to submit an enquiry to us for us to assist you and your needs further.