Things to know before taking a personal loan from a licensed moneylender
No matter if you are a first-timer considering taking a personal loan from a licensed moneylender or a regular customer of a legal moneylender, this article is still worth spending some time on.
First of all, we all understand sometimes we’d like urgent cash flow for certain expenses, for example, school fees, medical bills, or travel expenses. When the bill comes, we will need to prepare one lump sum for the bills. Daily expenses and bills in Singapore are not low, based on the CNA news in 2021, Singapore is one of the most expensive cities in the world.
Especially when festival seasons come, we all love to create a festival atmosphere and spend these special moments with loved ones, for example, Chinese New Year, Valentine’s Day, Hari Raya, Dawa Li, etc. It will be a headache when the cash flow comes to a problem.
One of the most common ways is to look for a credit card or personal loan from banks. However, banks usually take a few days to a few weeks to proceed with the application. And the credit assessment will depend on your Credit Bureau Report rating. If you have a good credit score, it will be easier for you to get some funds in a few days or weeks. However, if you used to have a bad credit report rating or default record, the application result might not be so positive.
Here is a plan B for you, taking a personal loan from a licensed moneylender is able to solve the urgent needs for cash flow. The personal loan application only takes less than 2 minutes if you are using Singpass to submit the application, it will directly retrieve the information from all government agencies, and it can help to get approval faster. Within a few hours during the business day, the personal loan in-principle approval will be issued to you. And the fastest loan disbursement can be arranged within the same day. By using the Singapss application, you will know that the licensed moneylender is a legal company, as to install the Singpass function on the website, requires approval by the government.
You may consider “ is it safe to borrow from a licensed moneylender in Singapore?”. The answer is “Yes”. All licensed moneylenders in Singapore are regulated by the Ministry of Law. Same like banks in Singapore, all licensed moneylenders have rules and regulations to follow, for example, the maximum borrowing amount that can be taken depends on the client’s monthly salary. And the charges and fees are standardized in Singapore.
What do you need to think of before taking up a personal loan?
What’s the amount that you need?
First of all, you need to know the amount that you need and the purpose of taking this loan.
At Best Licensed Moneylender, we will advise clients to only take the amount that they need and ensure the amount is affordable for them. The reason is simple, we want to ensure clients are taking the personal loan with comfort. We love to hear the issues that our clients are facing, and we love to plan the solution together with our clients.
How long do you need it for?
After deciding the amount that you need, the second factor is the tenure you need. If you are not sure about this, you can always chat with us for a loan proposal. Tell us your plan, and we can customize a suitable monthly installment personal loan plan for you.
Ask about the rate
For you to have a full picture of the loan package, the interest rate is one of the most important factors to consider. All charges and fees are regulated by the Ministry of Law.
The interest rate is capped at 4% per month. There is a late interest applied If a borrower fails to repay the loan on time, and the maximum rate of late interest is 4% per month for each month the loan is repaid late.
To find out more details, you can always chat with us by simply clicking the robot chat on the right corner. Alternatively, you can contact us for more details on the package that we can provide to you. You may even book an appointment for a non-obligation discussion.
Remember to take loans only from licensed moneylenders.
In 2021, a total of 19,444 cases were reported in the first half-year, up from 17,492 in the same period last year. One of the highest cases is loan scams. The scammers are personality to be licensed moneylenders.
All licensed moneylenders are regulated by the Ministry of Law, you can check out the full list of licensed moneylenders in Singapore. But remember, always refer to the Ministry of Law website for the full list of legal moneylenders, some illegal money lenders may forge a list of licensed moneylenders and put that list on their website in order to scam victims or provide illegal moneylenders.
What are the documents that I need to prepare for taking a personal loan:
- NRIC
- Proof of income ( 15 months CPF statement or last 3 months payslips )
- Proof of residency ( HDB ownership proof or tenancy agreement or bills)
Wondering whether you are eligible for a personal loan? Simply submit the online application via Singpass , you will receive in-principal approval in 30 minutes during office hours. And you can take your time to consider the offer given by us, there is no obligation to pursue the offer immediately.
