If you are a Singaporean, you can bear me witness that at one point in life youβve been forced to take a loan facility, not because you are poor but either to top up or fully finance a financial shortfall. If youβve not fallen a victim of this, then we can call you a lucky person. Otherwise, chances are, majority of citizens are in the middle class who are trying to make it in life and have to take either an education loan, car loan, house loan, or a business loan.
Accessing a loan in Singapore isnβt a hard thing to go by. This is because there are many Singapore Licensed Money Lenders offering loans at favorable terms. Also, there are banks and if youβve exhausted all means, loan sharks do exist though not advisable.
Before applying for any type of loan, it is important that you get all the facts right. Besides having numerous benefits, loans also have some shortcomings. Itβs therefore important that you weigh the shortcomings against the benefits before making any move. Below are the pros and cons of applying for a loan in Singapore:
Pros
Cash flow
When one is applying for a loan, it means he or she is experiencing a shortage in one way or the other. For instance, when starting a business, huge cash flow is required. So, the only option is to go for a loan so as to have things moving. With huge cash flow, one is able to make multiple investments which increase the chances of business success.
Flexibility
Loans, especially from Singapore Licensed Moneylenders are always flexible. The loan amount, interest rate and loan duration can be negotiated before loan processing to fit into the clientβs budget. The beauty of it is that, your loan can be customized depending on your needs and ability to pay.
Growth
Every business requires funds for expansion. Initial capital may not be enough for future expansion and this may prompt one to applying for a loan facility. Securing a loan for expansion does ease the burden on the available cash flow meant for day to day running of the business.
Interest Rates
Though interest rates differ from one lender to the other, Singapore Licensed Moneylenders offer the best rates. This, therefore, implies that low-income earners can access affordable loans from licensed money lenders. Additionally, they do not require collateral or guarantors which is a major hindrance in the loan application process
Cons
Tough to Qualify
Besides the fact that itβs easy to access a loan facility from Singapore Licensed Moneylenders, one must have something to show as a source of income to finance the loan installment. You donβt just wake up and rush for a loan facility.
Interest Rates
Interest rates can at times get crazy especially during hard economic times. Loan pricing depends on the state of the economy. A high inflation rate may mean very high-interest rates and a low inflation rate may also translate to a low-interest rate.
Loan Terms and Conditions
All loans whether from bank or Singapore Licensed Moneylenders come with terms and conditions that must be adhered to. For instance, you are expected to pay monthly installments failure to which some tough measures are taken against you.
Conclusion
Loans form part of our lives and you may not live without applying for one. But, discipline is key when dealing with loans. If in dire need of money, click here to apply.
