If this is your first time to consider to take a personal loan from a licensed moneylender, then this article is worth to take a look.
We all understand that licensed moneylender is not the first choice to source funds, as banks are providing much lower interest rate, and the loan amount that bank will be approved is higher. Of course, all applications are subject to bank credit assessment department approval and the applicant’s personal income cap.
What’s happen if the personal loan application has been rejected by bank?
Or the loan application has exceeded the income cap?
Or the processing time is too long?
So now, its time to consider a personal loan from a licensed moneylender.
Before you taken a personal loan from a legal moneylender, what should you consider?
1: Repayment abilities
No matter you are taking a loan from bank or legal moneylender, before taken a loan, you should think twice about the repayment abilities.
2: Only take the amount that you need
You may have a high income and you may qualify for a high amount, however we will always advice you to take the amount that you really need.
3: Only take from licensed moneylenders
All licensed moneylender are governed by Ministry of Law, and you can check the list of licensed moneylender from the website.
A licensed moneylender will require you to present yourself at the place of business. The lender is required by law to verify who you are, whether you are eligible to borrow money and whether you qualify for the loan amount you want.
If someone calls or texts or emails you offering a loan or offering to arrange for you a loan of any kind, you can be absolutely certain that it is an unlicensed moneylender – also known as a loan-shark or an Ah Long.
If you receive such offers, do not reply. Instead, notify the Singapore Police Force through i-Witness or call the X-Ah Long hotline at 1800-924-5664 to make an anonymous report.
If someone calls you claiming to be from a Licensed Moneylender, please do check the Licensed Moneylenders List under the Ministry of Law, and verify that the contact number actually belongs to the Licensed Moneylender.
4: Check interest rate and all charges
All moneylenders are permitted to impose only the following costs, charges and expenses for an unsecured Personal Loan:
- A fee not exceeding 10% of the principal of the loan amount granted.
- A fee not exceeding $60 per month for late repayment
- Interest rate of no more than 4% per month
- Late Interest of no more than 4% per month
- Legal costs ordered by the court for a successful claim by the moneylender for the recovery of the loan.
In Aero Credit, we are offering 3.92% interest per month, if you need for information, give us a call or simply click the blue button, and chat with us.
5: Remember to make payment on time
Like banks and all finance companies, late charges applies when the payment is late or amount not in full as per contract repayment schedule, its advisable to make payment on time in order to avoid additional late charges and it can help to maintain a good credit record as well.
If you would like to know more about Personal Loan from Aero Credit, click here to the FAQ. Alternatively, you may direct call us @ 6256 6319 or click the blue icon on the right bottom to start chatting with our loan officer.