Perhaps at any point in time, you are contemplating if you should approach a money lender in Singapore for a quick personal loan or even a payday loan. At this point, you are clueless about what you are signing yourself up for as you are not familiar with the complications and the whole loan procedure. There are differences between personal loan and payday loan. These unsecured loans are different from banks as well as banks are categorised as secured loan. Licensed money lenders differ from banks as they are less strict and more lenient as compared. As a potential borrower, there is a need to research about the mechanics as to how this loan process works and what are the requirements expected. It is necessary to do some basic homework before you get into anything especially anything that revolves monetary issues.
In recent years, there is a rise in loaning from licensed money lender. So before you jump onto the bandwagon and start applying for loan, you should find out which loan is more suitable to your situation. Yes, it is easy to obtain loan but are you aware of the high interests rate that the money lenders are offering? Do you think you are capable in repaying and what is your main reason for applying for a loan? Is it for your materialistic self who are chasing after branded goods or for emergency purposes? Consider all of your options, how the bank and other money lenders work, and what you are actually going to be using the funds for, in order to better align what you should be applying for.
What should you look for?
Let’s say if you have no other alternative to get extra funds, you may wish to look for a licensed money lender in Singapore. Do make sure that before you sign yourself up, you do know all terms and conditions such as the interests rate, the repayment duration and etc. Please bear this in mind that you do not want to approach a bogus company, nor do you want to go through a lender which is not licensed aka loan sharks. Take your time to do some homework some comparison in order to ensure you are dealing with a reputable local money lender. Find out which type of loan is more suitable and cater to your needs. Do not assume that all types of loan work the same way.
What is a payday loan?
Just as what the name implies, payday loan is a type of loan where you pay off when you get your next pay check. You are going to be approved, usually within hours, so you can have a small amount of cash to spend right now. If you happen to be in a dire situation yet unable to wait for bank approval loan in time, this could be the right loan for you to turn to when applying for a loan.
On the other hand, as easy as it may seems, there are a few complications that you might want to consider before taking up the loans. The most notable being that the interest rates will be higher than banks as the money lenders are more lenient in terms of loan approval and credit score would not be much of a factor to consider when giving out the loans. Therefore, you are actually paying for conveniency and fast approval in which you are paying a high premium for that.
What would you need?
You will need some personal identification such as IC/driver’s license, a statement proof of your monthly income which are typically all you will be required to present when you do apply any loan. Most of the money lenders will take a quick glimpse of your credit score and need a basic inquiry on your average salary income. For as long as you can repay the loan, within the time period they give you for repayment, you are likely going to be approved for the loan amount you apply for, and you will be approved typically within a few hours of applying for that loan.
Will this be a long term borrowing approach?
After all, it is not advisable and you should never consider loaning as a long term approach. The primary objective of getting a loan is to lighten up your loads while earning money to clear the debts. You should not pile the mountain of debts, thinking that this is the most ideal way to lead your life. Nobody should be loaning his whole life as this is very unhealthy be it for you individual or for your family. Nobody likes to live a life filled with uncertainties, worrying about monetary issues all the time. Hence, getting a loan from licensed moneylender is just a temporary short time solution that one should ever consider, especially for emergency and dire situations. You should never be stuck in a vicious cycle of taking out any personal or payday loans. If you have a long term monetary problems, you may wish to approach the Singapore government for help. ComCare initiative is introduced to help families be it in terms of short or long terms, helping your kids to keep up with education as it is very important for their future. One should not compromise their financial status with their kids education.
Know the terms
As a potential borrower, you have your own part to play, your own responsibility that you need to step up. Make sure that you do your homework and find out everything that you need to know about getting a loan from licensed money lender in Singapore. Make sure you are clear about the interest rate, the repayment terms and conditions and the loan limit prior to the loan application. Always understand what you are signing yourself up for especially the money lenders that you are approaching. Do check if the money lender is legalised and authorised by the Ministry Of Law (MLAW) . These days there have been many loan sharks scammer out there, misusing licensed money lender identities through SMS. Please be careful and always on your toes!