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Personal Loan Money Lender Singapore: The Complete Guide 2022

  • user-iconAero Credit
  • calendar19 September, 2022

Nobody is immune to the possibility of needing some extra cash, no matter how much money they bring in each month. It’s not uncommon to want some monetary assistance from time to time, whether for private or professional reasons, to cover medical bills, or to fund a child’s college education.

There may have been scepticism regarding personal loan money lenders in Singapore in the past. This was mostly because of their false beliefs about money lender online.

Moneylenders in Singapore That Have Been Granted a Licence

So that we may set the record straight, a licenced money lender in Singapore is NOT a loan shark. All Singapore licensed money lenders are required to meet stringent requirements before being issued a licence.

When lending money to the public, it is important to ensure you are dealing with a legitimate firm to which the government has given permission. Every licenced money lender is constantly monitored to ensure they follow the Moneylenders Act.

Money lenders in Singapore now provide financial assistance to many borrowers, including company owners, middle-class homemakers, and low-income domestic workers.

If you need money and have to borrow it from private money lenders, you shouldn’t feel ashamed about it. You now have thousands of cousins, coworkers, acquaintances, and neighbours who have done the same thing.

What Should I Think About Before Getting a Loan from a Legitimate Singaporean Money Lender?

One must first determine whether they need the loan. For instance, are you considering getting a loan to finance the purchase of a new computer? Lack of sufficient funds? Maybe you could put off getting a loan until you’ve saved up a little more money.

However, taking out a loan becomes more important if you or a family member are involved in an accident and have an immediate cost to pay.

The next step is to determine whether taking out a loan is feasible. You need to be familiar with the fine print associated with your loan, including the interest rate, payback period length, processing costs, and late payment penalties.

Figure out how much money you’ll have after paying your monthly bills to repay your debts.

Remember that you should never take on more debt to repay existing debt. If you don’t pay your bills on time, you’ll rack up even more debt and fees that may add up quickly.

Depending on the severity of the situation, this can lower your credit score. If your credit isn’t excellent, receiving loans in the future will be harder.

Before asking for a loan, looking into the many money lenders offering competitive interest rates is a good idea. Some lenders have competitive interest rates and convenient payment options.

Who Are Licensed Moneylenders, What Do They Provide, And Is It Safe to Borrow Money from Them?

When dealing with a legitimate money lender, your money is completely protected. Moneylenders that have proper licences from the appropriate authorities are legitimate financial institutions.

All Singaporean moneylenders must be registered with the Ministry of Law; here is a list of those who have done so. Borrowers may be certain that they are receiving up-to-date information since this list is frequently updated.

The government of Singapore has strict laws and regulations that these reputable money lenders must follow. Factors such as minimum age, maximum interest rates, extra fees, and income-based borrowing caps are included.

Private Money Lending: The Pros and Cons

Borrowing money from a certified money lender has several benefits and drawbacks. Here are some samples to look at so that you may make a well-informed decision when borrowing money from a legitimate Singaporean money lender.

Pros

  • Short waiting periods for approval (in less than 30 minutes if you have all the requested documents)
  • Your loan payments may be adjusted to fit your budget.
  • Quickly submit an application that can be accessed online.
  • A reputable licenced money lender won’t turn you down because of your credit history, which is a problem for traditional lenders like banks.
  • Provide you with a debt consolidation strategy to reorganise your debts.

Cons

  • High rates of interest (up to 4% monthly)
  • A loan from a licenced money lender may only have a 12-month payback duration.
  • A borrower’s maximum loan amount is capped at a percentage of their yearly salary.
  • Amounts due late or not paid at all may incur penalties.
  • The potential for irreparable damage to your credit score in the event of late payments.
  • Excessive borrowing tends to get out of control.

How Do I Check Whether a Singaporean Money Lender is Legitimate?

Following the money lenders’ code of conduct, a reputable licensed money lender would never resort to harsh language or constant threats and harassment.

If you want to borrow from a licenced money lender in Singapore, you’ll need to sign a legally enforceable contract that your loan officer will supply. You should expect to see information such as the loan’s total cost, the time it will take to pay it off, any costs associated with processing the loan, and any penalties for late payments imposed by the licenced money lender. Unauthorized loan sharks may not have a loan contract available or may pressure you to sign an unfinished one.

You must visit the licenced money lender’s office for personal verification after submitting your loan application and speaking with a loan representative over the phone about your application. The loan cannot be processed, and money cannot be released without your appearance. Keep in mind that no lender in any state may legally approve a loan application through text message, telephone, or electronic mail.

Conclusion

Every day we wake up and try to make some progress toward our goals, whether they be the realisation of a childhood fantasy or the accumulation of knowledge and experience that we hope will give our lives greater purpose. However, we all have times when we are taken in by the unexpected and want assistance to get out of a jam. The monetary form is the most common in which this assistance is given.

Personal loans from banks and other financial organizations are the last resort after exhausting options like asking close friends and family for aid.

Online Enquiry

Very often, it is only when you reach the bank or meet a lender that you are told your credit rating is not good enough for a loan. That can be immensely frustrating when your need for additional cash or extra funds is urgent. Use our Online Enquiry service to find out if you are eligible for a loan — it is easy, and it is fast.