Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
Need to acquire a loan from a money lender in Singapore? Here’s how.
Reading Time: 3 minutesMany of us experience financial emergencies at some point in our lives. It could be an unexpected hospitalization or some unforeseen expenses in business. Or you may require a loan on short notice for some other personal reasons. Whatever your need may be, a licensed money lender can help you at the time of a cash crunch, by providing a quick loan.
As opposed to the traditional loan methods that involve longer processing time, a legal money lender can process personal loans, business loans or wedding loans (or any other types of loans) faster and with affordable interest rates.
Perhaps you wonder: “Are money lenders reliable?” “Who is a reputed moneylender near me?” Whatever concerns you may have, getting a loan from a money lender is easy and convenient, provided you follow these simple steps.
- Find a licensed money lender
- Understand the services offered
- Apply for the loan
- Submit the documents
- Approval of the loan
Step 1: Find a licensed money lender
First and foremost, research the legal money lenders in Singapore and identify a well-known, reputed money lender. You could also check with your friends and family or even search online.
Remember to read the reviews when you are looking for a money lender on the internet. You may even look for phrases like – ‘moneylender near me’ on the search engines. But make sure that you visit their office before making a decision as being well-informed is crucial before making any life-changing decisions.
Make sure you are approaching only a legal and authorised money lender to avoid any unpleasant experiences. You may even take a look at the list of money lenders that are approved and licensed. Furthermore, you can avoid money lenders who:
- retain your documents without any reason,
- or insist you sign an incomplete contract or not provide the contract copy at all,
- or rush you through the process without clarifying your doubts,
- or pass your loan request without following the proper legal procedure,
- or release only a part of the principal amount.
These are a few unwritten rules to identify the bogus or fraudulent money lenders who may take undue advantage of your vulnerability and fool you.
Step 2: Understand the services offered
Once you have shortlisted the money lender, browse through all their loan services. All reputed money lenders offer different types of loans like personal loans, business loans, wedding loans, travel loans, educational loans and so on. Choose a plan that fits your financial requirement. The company executives can also help you with that.
Step 3: Apply for the loan
After the basic research is complete, it’s time for some concrete action. Fill out the application form properly. Remember to share all the important details. Maintain transparency where essential. At this stage, you will also need to share the exact amount that you wish to borrow.
Step 4: Submit the documents
Next comes the verification. Your identity, employment status and eligibility to borrow the loan will need to be verified by the money lender. For this, you will have to submit some important documents like your passport, national identification card, etc. Once you submit the necessary documents, the money lender will begin the process.
Step 5: Approval of the loan
If you are eligible and your loan is approved, the money lender will contact you and share the agreement. Remember to go through the agreement carefully. Money lenders are required to explain all terms and conditions of the agreement to you in a language that you understand. So, before signing, ask for any clarification, if you need it.
Only after you are satisfied with all the information provided, can you sign the document and wait for the money to be transferred to your account. Remember, the loan agreement with a licensed money lender is legally binding. So, consider your repayment capacity when borrowing.
Apart from the steps mentioned above, remember that money lenders in Singapore can charge a maximum of 4 percent rate of interest, irrespective of the borrower’s income. Further, when it comes to their fees, money lenders can charge you a maximum of 10 percent of the principal amount upon the sanctioning of the loan. They can charge up to 60 dollars for late repayment each month. To avoid such unpleasant circumstances, it is always a good idea to borrow an amount that you can repay.
Isn’t that easy and convenient? All that’s needed is a little vigilance while choosing the right money lender. So go ahead and apply for a loan from a well-known, legal money lender and fulfill all your emergency requirements.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.
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