Finding the best loan for you is much like shopping, you have to look around and do some research before you find the perfect fit! You have to look at many aspects of your potential loan before being sure because it’s also affecting your financial future.
One good option could be getting a loan from banks in Singapore but we all know that banks take a longer period of 2 weeks to process a loan application, which is one reason why people may often opt for legal money lenders instead.
Working With Legal Money Lenders
However, not all money lenders in the market are licensed, and that is why we have to be extra careful when choosing a loan company. The Singapore government has identified that there are many illegal money lenders who take advantage of innocent people when they are in a vulnerable state and need fast cash.
These type of money lenders can trick you into believing that they have your best interest at heart but can trap you into a loan agreement that ends up costing you more than it helps you.
Always check the moneylender’s list from the Ministry of Law website where you’ll find the full list of licensed money lenders in Singapore. Apart from that, you need to look at other things as well such as interest rates, repayment periods and more. Let’s have a look at the things you need to assess to find the best money lender for you.
Repayment terms are a vital aspect of your loan agreement because it details how much you have to repay, and when you have to do it. You should compare the repayment periods and amounts from each licensed money lender you speak to before you decide which one would suit your needs.
These terms are not fixed, so you have to speak to your chosen list of money lenders to get the most accurate idea of what they can offer you. A reliable money lender will take into consideration your ability to make these repayments, and if you have any concerns during your discussion with your money lender, you shouldn’t be afraid to raise an issue.
Assessment of various rates
Many of us are most concerned with the interest rate that gets imposed on our loans, but it’s also important to remember that your loan comes with 3 other fees as well: late payment fees, upfront service fees and legal fees.
When you speak to your licensed money lender, they should highlight any and all fees imposed on your loan before you sign the contract so that you can make a well-informed decision before taking up a loan.
You should compare the fees and interest rates of two or more money lenders before making any final decisions. It’s also worth noting that these fees have a pre-determined limit set forth by the Ministry of Law, so you should not be paying exorbitant amounts that exceed this limit.
Any licensed money lender that does not detail these fees and rates for review before you sign your loan agreement shouldn’t be trusted–even if they’ve verbally agreed to a lower than average market rate!
How To Compare Money Lenders in Singapore
It’s normal to want to seek out the best rates, and when we find a money lender that promises you a rate or fee that is much lower than the average, we might think we’ve hit the jackpot. But it’s important to safeguard your finances and do the correct comparisons in order to avoid landing yourself in some risky business.
If you need some sound advice or wish to speak to someone you can trust, then feel free to leave us a comment below or contact fast money on our hotlines: (+65) 62244746 (Yishun) and (+65) 62244749 (Tampines).