The money is urgent, they offer it to you quickly, without conditions, without endorsement, and in exorbitant amounts. What’s more, they promise you that you will have the cash regardless of whether you are a lousy payer or have long-standing debts. Some will even say that they solve your other financial problems. Nothing seems weird to you yet?
Quick money, but inexpensive and very long-term conditions, which represents endless methods of payment and more debt at a disadvantage.
Theft of personal information for crimes such as extortion or identity supplementation.
Hiring a personal loan online is smart. You save time and money, otherwise, you waste time between financial institutions that are very bureaucratic. Since online lenders have lower operating costs, you can also benefit from the lower rates they can offer.
However, on the Internet, we can find tricks and deceptions. Make sure your lender is a licensed institution. Here are 5 tips on getting a personal loan from a licensed moneylender in Singapore:
- Check license and credibility to find a lender with a good reputation on the internet
No matter what you are asking for a loan for, do not give in to the rush and take your time to google the reputation of the company from which you will apply for the loan. Check the background of the company and the opinions of other users; if most are good. In addition, remember that financial entities that lend money should ideally be included in the Ministry of Law Singapore. If the moneylender you want to check out isn’t on the list, don’t proceed.
When visiting a point of sale, make sure they have a valid license from the register of moneylenders.
By doing an online search, you can easily find a licensed moneylender in Singapore that accepts borrowers with no credit history.
Lenders who understand such a situation will look at other pieces of your financial history to decide whether they think you are a creditworthy borrower. For example, they can see your:
- Income tax returns
- Pay stubs
- The activity of your bank account
- History of the payment of your rent or utilities
- Your total savings
If you have a stable income, make your constant payments on time, and have some money saved, lenders can see that you are responsible for your finances. This means that you are very likely to be approved for a personal loan.
Also, note that licensed moneylenders in Singapore do NOT advertise their services through phone calls or SMS.
- Flexible payment plan
As with interest rates, compare at least 5-10 options. Choose a licensed moneylender in Singapore whose priority is helping you solve your problem rather than one who is about making money off of your interests.
The moneylender should offer you a flexible plan so that you can pay your dues and not pile up your debts.
Also, check whether the money lender offers “moderate” sums of money or according to your ability to pay because a reliable money lender takes its precautions and is transparent with its clients. If you approach them for the first time, in addition to reviewing your credit history, it is expected that they will offer you only the minimum, in this way they ensure that you will have the ability to pay, and they will begin a relationship with you to increase the amounts and improve the conditions of payment on future loans. They will not promise to “get you out of the credit bureau”, as that is impossible since invariably all loans and credits (whether they are paid on time or not) are reported to the Bureau.
- Review the paperwork and keep it in a safe place
If you are unsure about the terms of the contract, bring someone with you who knows. Review the agreement and keep it in a safe place with your receipts and bank statements. These documents will be useful in the event of a dispute.
Also, It is important to check that the moneylender does not ask you to sign contracts or make agency payments BEFORE applying for the loan because a reliable money lender knows that you ask for money. After all, you do not have it, so obviously it will facilitate the conditions for you to obtain it quickly, but it will NOT charge you before giving you the loan. Even if there are management procedures, they will be quick, and they should never “condition” you to pay “fees”, “insurance or opening commission” or any deposit before knowing whether or not you will have the credit authorized. If you provide any personal information to carry out any procedure, a licensed moneylender in Singapore will give you a reference or procedure number for future clarification.
- Chck Interest charges and ask for an explanation of the date and amount of your payments
Make a comparison with at least 5-10 different moneylenders. Don’t be fooled by the low interest rates some offer. Check if there are any hidden costs.
When opening credit or obtaining a loan, a reliable company will offer you free financial advice to guide you in any doubt; but also, it will explicitly show you how your payment scheme will be: the frequency with which you decided to pay and the amount that corresponds to each term, as well as the interest generated.
- Pay attention to your debt/income ratio
Ask for as little money as possible, and make sure you don’t put yourself in a bad position compared to your income. Many entities can overlook a limiting credit score if your income is high compared to the amount you want to borrow.
That said, it’s important not to get into the habit of inflating your income or lying on a loan application. If a lender doesn’t require documents to prove your income level, it can be tempting to get too creative. Make sure you can justify and provide evidence of any claim that is made on your income.