There are many uses of loans, one being you are able to manage your own financial problems. Loans may also be utilized in the expansion of a business venture. However, realize that a loan also can be crippling. More so when you fail to read and fully understand the moneylender’s loan’s conditions and terms.
All moneylenders in Singapore have a fine print included in their loan agreement. Oftentimes most borrowers will tend to skimp over it. Regrettably, when you fail to read the loan’s fine print may be disastrous. This can even lead to your going bankrupt. Bearing that in mind, here is a look at 4 essential guidelines for reading through the fine print. More so when you are getting the fast cash type of loan.
Find Out About Cancellation Penalties
Ahead of signing for any loan type. It is advisable that you find out the amount in the percentage you will get in case of cancellation of your personal loan. This is because, for some reason, you could find yourself having to withdraw from the personal loan.
By knowing the percentage charged in penalties as detailed in the loan fine print. You will be able to even negotiate for more suitable loan terms. This will also help you find a licensed lender who is offering the lowest cancellation fees.
By overlooking these figures will lead to you getting a bad loan. Only to have you regret it later.
Confirm The Reference Rate charged
When reading the fine print. One very vital part you will need to read cautiously is the reference rate. Realize that there are 2 types of rates in each loan. These are the floating rate and fixed rate.
When your loan as shown as a fixed rate loan in the lender’s fine print. Then it implies that the rate of interest will not change all through the loan tenure. But then, when it is shown as a floating loan. The loan’s rate of interest is dictated by Inter-bank Offer Rates. This feature of the lender’s fine print will help you in deciding how to plan your repayments.
At the same time, you will be able to determine the loan type that fits well with your financial abilities.
Watch For Interest Reset Periods
When your personal loan comes with a floating rate of interest. Then the most vital feature of the loan’s fine print is the reset. This means you need to go through this feature. Loan reset just means that you have only particular dates in which you can redeem your personal loan. I order for you to prevent yourself from incurring unnecessary penalties and fines.
Make sure that you are fully aware of the reset dates for your loan. You need to also read and get to know the portion of penalties you might have to pay should you redeem the loan ahead of, or after the set dates. Knowing this will help you budget your finances.
At the same time, you will be able to prevent the pressure of unplanned for fines.
Confirm The Lock-In Time for Your Loan
This is merely the time period within which a borrower has to hold a loan with the legal moneylender. Be sure to read through this section of the loan’s fine print. The reason for this being that it could help you avoid incurring unnecessary penalties.
For example, some loan fine prints indicate that when you make an early repayment. Then you will incur a fine for doing so. Being aware of this feature of the loan’s fine print. You will have a smooth repayment for your loan without facing fines.
Neither will you have penalties which might come up along the loan period.
Helpful Tips When Getting Fast Cash Loans
Ask about the collateral requirements
Prior to accepting a loan, it is advisable to ask about requirements for collateral. There is a collateral only means that a borrower can have access to the loan of choice. However, failure to repay the personal loan.
Your legal moneylender can claim the asset you had used as security. Collateral used can be something like fancy jewelry, and even your car. You could also decide to put up your home depending on the amount of loan you need.
Have needed documents when applying
As you submit your loan request you will need some form of identification. This needs to be an ID type such as the SingPass. Another document which will provide proof of your identity is accepted. It needs to be accepted types of identification in Singapore. Make sure that you carry with you proof of employment such as a work ID card.
You are required to also have 3 most recent payslips from three months in the recent past. With this, a licensed lender may be more assured in offering you the loan type you need. Particularly when the lender is able to determine that there is low-risk involved by lending to you. Furthermore, since you hold a steady employment.
The legal moneylenders can trust that you will repay the debt promptly.
Only Sign a complete loan contract
When you are content with the loan conditions and terms. Make certain that you only accept a complete loan agreement for signing. Also be sure to get your copy of the loan contract. This is very vital that you remember to do this. Failing to acquire a copy of the complete loan contract.
The personal loan you will have borrowed could be considered as a fraudulent action. Take note, avoid signing any loan contracts that appear to be an incomplete contract. A loan contract should clearly show the conditions of the personal loan you take. It needs to also detail the set repayment tenure.
It also should include the rates of interest applied to the loan. If for some reason these details are not included. Make sure that you ask for it. Another option would be you go to a different moneylender.