How to be a Responsible Borrower in Singapore

 

Are you thinking of borrowing money in Singapore? Whether it’s a small scale loan, or for a significant lump sum, you should never rush into this process, even if you need an urgent loan in Singapore.Borrowing Urgent Loans Responsibly in Singapore

A loan can help you in many ways and especially in times of urgency, but you have to be aware of the risks of taking out a loan. So to prepare yourself before you decide to take out a loan from a bank or an authorised money lender in Singapore, here are some steps you can take to make sure you’re being a responsible borrower.

Think Twice

You should think it over before deciding to borrow money. Does your end justify the means? Is it absolutely necessary to take on this loan? How easy or difficult will it be to repay this loan? You have to question the value of taking out your loan and also factor in the interest when you’re doing this.

If you’ve gone through all there is to consider and still think that getting a loan is the best choice for you then start preparing your documents for your loan request.

Always Know the Amount You’ll be Able to Pay Back 

You should know your ability to pay back your intended loan amount, even before you get your loan! When you are in need of an urgent loan in Singapore, it’s easy to forget to calculate this, so make sure you do, no matter how much of a hurry you’re in.

Remember, you don’t need the maximum amount your authorised money lender allows just because you are eligible. Borrow only what you need and can afford to so you’ll be able to make your repayments on time. If you do this accurately, you should be able to forecast your financial capacity with relative ease.

Know your priorities

Before making a big decision such as taking out a loan from an authorised money lender in Singapore, keep in mind that your money you have with you is still tied up because you will have to make your repayments on a timely and punctual basis.

If you have other expenditures that you’re anticipating, you have to make sure you have the financial ability to prioritise repaying your loan first. If this extra expense is going to get in the way of that, then you will have to decide before taking out a loan, if you can do without this expense, or if the loan still takes precedence.

Always Have a Plan B

Even after all this consideration, it’s only responsible to have a plan B. Because even the best-laid plans can go off the mark sometimes. And this is not about you doubting yourself, it’s just about preparing for the reality of unforeseen circumstances.

In the event that you struggle to make repayments, is there someone you can rely on to help you out? Or is there something you have that you could use as collateral in a worst case sort of scenario? Having these measures in place can be a real lifesaver in case something unexpected happens.

 

Read Up on Loans

Now that you’ve done an internal check on your needs and capabilities, it’s time to read up on all the things related to taking up loans. This includes the terms and conditions set by authorised money lenders, what repayment periods you should go for, and what is taken into consideration when approving your loan.

Be an informed borrower and make sure that you understand all the provisions in it. And don’t be afraid to get help or ask an authorised money lender in Singapore when you are not sure about something.

 

Factors you need to consider when taking out a loan

While we have encouraged you to do your own homework and read up on loans in Singapore, here are some major factors that you can quickly consider:

  • You are legally required to fulfil any loan agreement you take up with a licensed moneylender.
  • You should consider whether you’ll be able to follow the contractual terms, with respect to your income and financial compulsions.
  • For fast cash loans and short term loans you may have to pay high interest rates.
  • Always check the license of the moneylender you are interested in by visiting the website of the ministry of law.

    Authorised Money Lenders Singapore

    Now that you’re a prepared and responsible borrower, you can proceed to take out even an urgent loan in Singapore, with relative ease.

    But if you still have doubts, or are just curious about loaning money from authorised money lenders in Singapore,  just leave us a comment below, or contact us at our hotlines: (+65) 62244746 (Yishun) and (+65) 62244749 (Tampines).