First published: 8 August 2022 @ 10:28 am
Client: Licensed Moneylender Singapore
Written By: The Big Writer
Published At: Read More
When you are looking to borrow money in Singapore, besides turning to banks, credit cards, or family and friends, a licensed moneylender is also a popular option. However, it can be daunting for first-time money borrowers who may not know how to borrow safely from a licensed moneylender in Singapore. Here are some useful tips to help you get started.
Tip 1: Find a licensed moneylender in Singapore
Before approaching a moneylender, the most important thing you have to do is make sure you are dealing with a licensed moneylender. The way to determine that is by browsing a list of licensed moneylenders on the Ministry of Law’s website and verifying your choice. . Registered moneylenders in Singapore have to abide by regulations set forth by the Ministry of Law that protects the money borrower. If you are unsure, you can always refer to the FAQ list or contact them for inquiries.
Tip 2: Identify the right loans that match your budget
When you apply for a loan, always determine the purpose and need for it. Make a plan of how many loans you need and when you need them. Personal loans are a flexible and accessible option for people looking to fund various purposes such as paying off high-interest credit card bills, medical expenses, home renovations, and so on. Identifying the right loans can help you stay objective and use them wisely to pay off your existing debts or to bridge a temporary financial gap.
On top of that, you will need to calculate your monthly budget to see what you can actually afford. While personal loans are packaged with low-interest rates, your budget will help determine how many loans you can borrow within your means and if you can repay them on time. The smaller your loan and the shorter your repayment period, the less interest you have to pay. Understanding this simple tip can help you avoid taking on a larger loan and staying in debt for a longer period.
Tip 3: What a licensed moneylender must inform you before granting a loan
Before approving loans, the moneylender is required to inform the borrower in writing, the full terms of the loan, including:
Nominal interest rates
Late interest charges
Other permitted fees
Instalment details, especially in cases where there is a fixed repayment period agreement between both parties, also known as a term loan
Tip 4: Choose a licensed moneylender you can trust
Now that you know the types of loans you need and the budget you have, it is time to research quotes from different moneylenders. One thing you should look out for when discussing loan terms is the interest rate*. Under the Moneylenders Act, the maximum interest rate that a licensed moneylender in Singapore can charge is 4% per month based on the borrowed amount or late interest from a late payment.
*The interest rate should be computed based on the monthly outstanding balance of the principal remaining after deducting the payments made.
For instance, if your loan amount is $10,000 and you have already paid $5,000, then the 4% interest rate should only be computed for the remaining $5,000.
A licensed moneylender may also impose other fees such as latefees or legal costs incurred to recover loans if the borrower fails to make payment.
Do look out for some shady practices that a licensed moneylender in Singapore is not allowed to engage in:
Using abusive or threatening language
Fishing for your SingPass ID or password
Failing to return your important personal identification documents such as NRIC and passport
Asking you to sign a blank or incomplete contract for the loan
Approving your loan without explaining the terms in detail
Failing to provide you with a copy of your loan contract
Soliciting for loans via text messages and phone calls
Galaxy Credit and Investments Pte Ltd is a licensed moneylender in Ang Mo Kio that provides a one-stop moneylending solution for our customers. We understand your financial needs and are committed to providing excellent loan services at the best and most affordable rates.
To apply for a loan with us, you should be:
At least 18 years old and have a stable source of income
A Singaporean, PR, EP, or S-Pass Holder
Able to provide proof of identity (e.g. Singapore IC or passport)
Able to provide proof of income (e.g. payslips, monthly bank or CPF statements, latest IRAS Notice of Assessment)
Proof of residential address (e.g. billing proof or bank statement (for foreigners)
To find out more about a safe and reliable way to borrow money in Singapore, contact our team of friendly and experienced loan officers today.
The post 4 Tips To Borrow Money Safely From A Licensed Moneylender appeared first on Licensed Moneylender Singapore.