Living in Singapore can be quite expensive and it can take a significant amount of money to maintain our lifestyles. That’s why it’s not uncommon to find yourself needing urgent loans to pay off some debts. What can you do about it? Well, the answer is to opt for a short term loan.
But with that said, not everyone is eligible for loans because licensed money lenders and banks have set criteria for providing loans. Getting a loan comes with certain requirements such as minimum annual income and costs like annual interest and processing fees.
So before you set out to get a loan from banks and moneylenders, here are a few things you need to know.
Things to Know Before Getting a Loan From Licensed Money Lenders
There are many things like eligibility, financial status and payback period you need to take into consideration before getting a loan. Here are the eligibility criteria for loans in Singapore:
- Your income should be more than $20,000 dollars per annum to be eligible for a loan from banks but that’s not the case with moneylenders. Even if you earn lower than that moneylenders can give you loans up to $3,000 dollars.
- The repayment period of moneylenders ranges from 1.5 months to 36 months.
- The interest rate starts from 1.20% per annum and it can go higher up to 48% on reducing interest rate depending on the amount and repayment period.
Money Lenders Vs Banks
Banks tend to take more time to process your loan application and even after this process, you may not get the loan in the end. Banks do need assurance that the borrower will repay their loans on time and that’s why they check the credit history of borrower thoroughly before they decide whether they want to give you a loan or not.
This, however, is not the case with licensed money lenders because these loan companies tend to offer smaller loan amounts. You can loan as a few hundred dollars to thousand from licensed moneylenders but with banks, you usually have to get a loan amount of at least $10,000 dollars if you are found eligible.
So if you’re looking to for an urgent loan of a small to medium sum, then approaching a licensed money lender in Singapore is perfect for you.
The benefits of borrowing money from a licensed moneylender
Besides quick processing times and loan amounts, licensed money lenders in Singapore have many other benefits over banks for getting a loan. The benefits you can enjoy when borrowing with a licensed money lender are:
- The moneylenders don’t have as many restrictions regarding your citizenship or income when approving your loan request.
- If your credit score is a concern, you may not be eligible for bank loans but are still eligible for loans from licensed money lenders in Singapore.
- Some licensed money lenders in Singapore let you choose your payment date and time and also how much you can afford per month.
Getting a Loan In Singapore
So if you’re looking for fast cash in Singapore, and are facing obstacles with credit scores and repayment dates, then taking a loan with a licensed money lender in Singapore is the way to go.
You could even just be looking for a small loan amount that you just can’t find at your bank of choice. Either way, contacting a trusted loan company can offer a quick, easy and stress-free solution!
To find out if you’re eligible for taking out a loan with a licensed money lender in Singapore, leave a comment below, or contact us at our hotlines: (+65) 62244746 (Yishun) and (+65) 62244749 (Tampines).