Applying for a loan from a licensed moneylender in Singapore can be an intimidating process, especially if you don’t know how the financial system works here. The good news is that once you understand how it all works, it’s straightforward, and you can find what you need with ease.
The following list of steps will guide you through the application process and factors to consider when sorting out the list of licensed moneylender and help you obtain funding quickly.
List of Licensed Money Lender
Before applying for a personal loan, you should first locate an approved money lender and review their list of available loans.
This will ensure that you understand how much you can borrow and what rate you can expect. Alternatively, you can approach a broker. This may be a better option when looking for a loan or finance for a specific use or purchase. For example, when looking for buy a caravan for leisure purposes, a broker like Credit One caravan finance will be able to assist in getting the best loan for your caravan and purpose.
After finding an approved money lender, submit your application at their office. Before submitting it, it’s recommended that you inquire about all the legalities to ensure that you fully understand all the requirements before signing any contracts.
You must visit the money lending office in person even if the money lending company’s name is mentioned in the list of licensed money lender.
Call Them Up And Schedule An Appointment
First, you need to contact the moneylender that you’d like to work with. You can ask them what documents are required for applying for a loan. Also, ask how long it will take for your loan application to be processed. If they say they can accept your application on a short notice and without any documentation, it is most likely, they are not obliging by the money lending rules set up by the Ministry of Law, Singapore.
Licensed Money Lenders require all borrowers to meet several criteria before they can lend out the cash. Below are a few of them:
- A duly filled application which includes the borrower’s details such as; Name, DOB, Email Id, Contact number, Loan amount
- Supporting documents including borrower’s three month’s income proof, payslips, income tax filing details, and so on.
Note: You may also need other financial documents such as a home/car ownership certificate or property rental agreement to prove that you can repay your loan.
Ask About The Interest Rates And Other Fees
Interest rates are not standardized across all companies, so it’s essential to determine what you’ll be charged. Be sure you ask about any hidden fees. There may be administrative fees, late payment fees, etc. Moreover, don’t forget about the penalty interest. Don’t sign anything until you have a copy of the documents and can read it over carefully. It would help if you talked to friends and family who have borrowed from moneylenders before or if they know about any reliable money lender.
Can You Abide By The Contractual Terms?
Before signing any agreement with a moneylender, be sure you can abide by its contractual terms. If you cannot, don’t take a loan from them. If you do so and fail to meet your obligations under that contract, your lender may pursue legal action against you.
In fact, because of their strong-arm tactics and aggressive lending policies, many moneylenders are found to be on the defendant’s side in high-profile lawsuits and in cases of government investigations on financial misconduct.
Get The Key Information
Moneylenders are obligated by law to provide every borrower with key information, including how much interest needs to be paid on your loan. Ask your moneylenders a few questions below, in case they don’t provide it on their own:
- How much money can you lend?
- How much time do I have to pay it back?
- What are my monthly repayment amounts?
- Are there any penalties if I am late on my payments?
- What will happen if I default on my payments?
Everybody faces financial problems in their lives. Hence, borrowing cash is an integral part of life. However, it can be confusing if you don’t know what you’re doing. Keeping in mind the above-mentioned guidelines, you can ensure that no money lender will cheat you.