As of 1st Oct 2015, the licensed moneylenders interest rate has changed to 4% monthly with no income caps. The interest rate shared on this blog post is based before 30th Sep 2015. Do take note of the change, or you can contact us for more information.
If you have been planning to borrow from a licensed moneylender, it is essential that you make an informed and intelligent decision to avoid an unfortunate outcome in future and also get your cash loans approved without any hassle. Prior to taking up a loan, you must consider and understand the different aspects of borrowing cash loans from a licensed moneylender to lead a debt free and peaceful life.
- Primary concerns that need your attention
- Do not forget to consider various alternatives before approaching a moneylender including numerous financial assistance plans offered by different Governmental agencies.
- Do remember your Singpass login details as well, as licensed money lender needs to find out your annual salary through IRAS website.
- Remember that the loan contract needs to be legally fulfilled as per the contractual terms. Hence, it should be calculated keeping your income and other financial obligations in mind.
- Carefully read and fully understand the terms and conditions of the loan contract before you agree to any of it. You must legally possess you own copy of the contract.
- Choose only the most favourable cash loan option by researching about different moneylenders, instead of rushing into a commitment.
- The borrowing amount – You can borrow a cash loan of any amount if it is a secured loan. However, the loan amount varies in case of unsecured loans. You may borrow any sum if your annual earning is $120,000 or more; up to four months’ income if your salary is between $30,000 and $120,000; up to two months’ income for earning between $20,000 and $30,000; and up to $3,000 for an annual income less than $20,000.
- Interest rates and fees of the moneylender – Before getting the loan, you must find out the Effective Interest Rate of the loan and your licensed moneylender is legally bound to disclose that to you. The moneylender can only charge six types of legally permitted fees.
- Know your financial limitations – If you have been planning for a major loan, it is always a good idea to refrain from taking personal loans and keep your credit history and Debt Servicing Ratio immaculate. A number of piled up personal loans will only decrease your chances of qualifying for any bigger loan.
- Opt for specific loan packages – Recognize your needs and preferences and choose a particular package accordingly. There are specific loan packages that are targeted to meet definite requirements. Do not hesitate to ask your banker and undertake an extensive research to choose the best loan.
Borrow only from licensed moneylenders who never ask you to sign a blank page or contract as well as ask for your passwords. Make a smart decision and get your cash loans approved from a licensed moneylender.