People live in a competitive world where there is a lot that we need to do to sustain our needs. The population is increasing every day, and everyone is trying to grab that little opportunity available to make their life better. You find that you need to be working somewhere in a way that would help you meet your needs. Sometimes you don’t get a job, and you find that you got a business idea to start a business, but due to some circumstances, you don’t have the funds for your startup.
The above scenario is one of the reasons that lead you to consider loans as the best option, you may be facing other financial constraints such as paying your bills, energy bills, supporting your education and this is where you find it necessary to apply for short-term loans. The challenge comes when you are looking for a financial institution who is willing to lend you short term loans for your needs from licensed money lender in Singapore. Applying for a personal loan becomes the only option, and it has turned out to be the best idea that has lifted many startups from the base to become one of the largest corporations in the world.
License money lender in Singapore can help your idea grow into a huge business if well managed. If you are an entrepreneur, and you have decided to apply for a personal loan. Then it is a good idea that you understand some basics about it so that you can have the appropriate knowledge and expertise to handle the loan in your endeavors to achieve your business objectives by looking at some of the points to look out for when applying for a loan from a licensed moneylender in Singapore.
Credible and Licensed Moneylender
One of the most important to watch out for is to ensure that the firm you are applying for the loan from is a recognized financial institution. One of the basics that they should be able to fulfill is to ensure that they are licensed by the authority to handle financial matters. Financial institutions range from banks, legal money lenders, online money lenders and also the credit card when they issue temporary credit line.
Moneylenders are also in business to make some profits. You will find that most of them advertise loans indicated 0% interest. Let me assure you that there nothing like free especially when it comes to financial matters. You will realize that you end up paying the loan in a different way that you don’t notice. There are several mechanisms they use to charge you for the loan like the processing or origination fee. This fee is usually deducted immediately from the loan hence you receive less amount from the loan typically 2-3% of the amount of the loan.
There other fees to keep in mind and note when applying for the loan such as change of tenor fee, cancellation fee, late payment fee or even the early redemption fee when you decide to pay for the loan before the stipulated time to pay the loan elapses.
The Interest Rates Charged
If you have ever checked out for loans from the online, you should have realized that the interest rates vary from different moneylenders. These figures confuse most of the people when applying for loans. These interests are usually indicated in two different terms, the nominal which is typically cheaper than the effective interest rate. If you wish to apply for the loan, it is advisable to use the effective interest rate or the EIR for the purpose of comparing loan services from various moneylenders. This system ensures that compounding periods and application fees are put into consideration thus offering loan applicants a better method to compare the loan rates from different money lenders.
Something else to remember is the annual flat rate. It is very important as it helps you determine the amount you have to pay every month as the loan installments back to the money lender so that you can be able to prepare your budget depending on your monthly income
Your Credit Rating
Something that will help your loan applications get approved fast is your credit history. If you have a bad record on your credit rating, the money lenders might delay clearing your loan applications, and sometimes the applications are discarded or ignored. Lately, the technology has improved so much that moneylenders usually promise to process your loans usually fast within 24 hours. This is true but to achieve fast loans, you need to have a clean record without bad credit issues anywhere. Some of the causes of bad credit may include loan defaulting, late payments of loan installments and bills and sending many applications requesting for loans while you still have pending loans.
Stick to the Specific Purpose
Maybe you have ever wondered why moneylenders offer several types of loans while you can just apply fora personal loan. The reason behind this is the fact that different types of loans are structured according to the purpose. It is not efficient to apply for a personal loan and pay for your education. You find that there exists a big difference between the two loans as education loans usually have a long period of repayment while a personal loan is usually a short term. If you use a personal loan to pay for education, the time to pay back may elapse even before you complete your education to find a job to pay the loan.
So., it is better to stick with the purpose of the loan, the interest rate is usually different and competitive depending on the purpose of the loan and when compared to personal loan.
The Minimum Tenure
Most money lenders usually offer loans for a minimum period of one year. If you apply for a loan and back within six months, you will still be charged a pre-payment charge. This ensures that you stick to the terms and installments so that moneylenders can get their expected interests. This is the reason why you should explore all the options available before you apply for a loan
You have seen that licensed money lenders in Singapore are there to offer you various options for loans to help you sort out your immediate and long-term financial needs. You need to use the above pointers to determine the moneylender who is offering the type of loan you need on the best terms so that you can apply for the loan.