Knowing about the loan process before borrowing can help you on your road to financing greatly. Loans can help you pay for things such as home renovations, wedding expenses, and consolidated debt. But what really goes into finding the right loan, and applying for it?
First, Decide What You Need
The process starts with the requirements of the borrower and knowing what you need according to the financial conditions you’re currently facing. For instance, if you’re in need of cash immediately, you might need to take out a payday loan which gives you cash virtually instantly but comes with higher interest rates and lower loan sums.
If you do have some time on your hands, however, and need a larger sum of cash, then you may opt for a personal loan instead. Getting a personal loan from a licensed money lender is also a relatively quick transaction that takes approximately 1 to 2 working days, which makes it a popular option for most borrowers.
Different money lenders will have different loan types on offer. For example, a bank offers a range of loans such as personal loans, business loans and credit card loans. But if you face issues with your credit score, banks may not be as viable for you as licensed money lenders. Adding to that, banks also take longer to approve your loan application. So do factor in time, loan amounts and rates into your consideration.
Check the eligibility criteria
As previously mentioned, eligibility requirements between different financial institutions vary. Licensed money lenders generally have less strict requirements as compared to banks, which make them popular options for many borrowers.
Regardless of this ease, you still have to take into careful consideration whether you as the borrower are eligible for the loan you want. To understand more about being eligible for a loan, you can check out our helpful guide here.
Gather all the relevant documents
After selecting which type of loan best suits your needs, you can proceed to gather all the relevant documents to prove your eligibility for the loan in question. You can contact your chosen licensed money lender about the documents needed to process your loan application. It’s advised to gather all the necessary information and documents before applying for the loan to save time going back and forth during your application process.
Submit the application
The final step is to submit your application to your chosen loan company. Most of the money lenders in Singapore offer convenient application options–you can either visit their offices or apply online from their website.
In certain cases, if you don’t want to visit their office, you may have to mail all your documents to your money lender after applying for the loan. Just be sure to check with your loan company on this before proceeding to avoid any possible delays!
How to get a Loan
Getting a loan is pretty simple once you breakdown the process into a few simple steps. But if you’re worried about missing out on any vital elements, you can always give fast money a call at our hotline: (+65) 62244746 (Yishun) and (+65) 62244749 (Tampines).