There are several reasons why an individual may decide to borrow money in Singapore: a new car, a new home–there are too many scenarios that can result in a substantial purchase. Under such circumstances, it is advisable to search for the lowest interest rate loan in Singapore. Other reasons include in an emergency, to consolidate existing loans or alternatively, to improve your cash flow before you get paid. Of course, you can always ask family and friends, depending on your circumstances as this will probably result in low or no interest being charged.

Whenever you want to borrow money in Singapore, it is advisable to think very carefully before you proceed. The type of loan and whom you borrow from will have a significant bearing on the cost. Naturally, you want to find the lowest interest rate personal loan in Singapore that is available to you and your situation. Here some questions that you need to think about:

1. Does the lender have the means to make the required amount available?

If you are borrowing money from family or friends, you need to look at things from their point of view. They are trying to help you but do they have the means to give the amount that you need? They may feel obliged to help but could create problems for themselves in doing so.

2. Can you afford the repayments?

Regardless of your choice of money lender – whether you’re borrowing from family or friends, a bank or a private money lender – you need to be sure that you can afford the repayments. Failure to do so can have severe implications on you and your family, so make sure that you have done the maths first.

3. How quickly do you need the money?

How quickly you need the money, and the type of loan you require will have a significant bearing on where you can borrow the money from if it is needed quickly. Generally, banks take longer to make decisions than private moneylenders with family and friends often making fast decisions too. If you need the cash fast, banks may be out of the equation.

4. What options are available?

If you are looking to borrow money in Singapore, there a range of options available. Naturally, there are banks, but frequently licensed money lenders are a more viable option. Depending on your circumstances and if you have time to explore the possibilities, you could save yourself a significant amount of money simply by shopping around and choosing the right type of loan.

So, Who Should You Borrow From?

It is always worth remembering that some family and friends may be sensitive about lending money. Failure to repay the money as agreed can put immense strain on personal relationships creating irreconcilable problems. We would always advise that you think carefully before taking this avenue.

Here at Fast Money, we have an extensive range of personal loans, including home loans, car loans, and short-term payday loans t low rates to help with your circumstances. If you are a business, we also have a selection of business loans designed for both small and large companies. Contact us directly at (+65) 62244746 (Yishun) and (+65) 62244749 (Tampines) to go over your financial situation and discuss the best solutions for you.