Business

Considerations when borrowing a personal loan from a moneylender

At one point in life, you will face some serious issues that you will have to settle. Many of the things involve spending some funds. Regardless of how careful you can be with your finances, life issues can lead you to a financial crisis. Due to this reason, you will have to visit a financial institution to apply for a personal loan. However, before you apply for a loan, there are some things that you must be aware of.

 

Some of these things are:

i) Your ability to abide by the terms of the loan

Before you decide to borrow any loan from a licensed money lender in Singapore, you must determine if you can meet the terms and conditions of it. This is because by borrowing you will be putting yourself in a situation where you are supposed to fulfil your promise legally. Thus, you will be required to pay for the principal and interest charged. If possible you should borrow the amount that your need to settle your needs. Do not try to borrow until you exhaust your limit and yet you cannot manage to pay the whole amount.

 

ii) Amount of interest charged

Licensed money lenders are allowed to charge their clients at most 4% monthly interest. With such low interest definitely, you can feel free to borrow a personal loan once you are a financial crisis. However, once you delay in repaying your loan within the agreed period, you will be charged an extra interest.

 

iii) Additional fees charged

Licensed moneylenders in Singapore are also allowed by law to charge approval fees and legal costs which can be used in recovering the loan especially when it’s paid late.

 

Things which are required before one borrows a personal loan.

As a borrower, you are expected to fill and submit your application form to the money. The form must have the following details:

• Your full name

• Personal identification numbers

• Contact numbers

• Residential address

• Nationality

• Gender

• Amount of money that you are applying for.

You are also required to attach supporting documents such as:

• Income tax statements

• Payslips

• Billing statements for your utilities

 

Foreigners who are residing in Singapore are also allowed to borrow personal loans. However, they must provide additional supporting documents such as:

• Bank statements

• Appointment letters from the company where they work in Singapore

• A copy indicating their tenancy agreement

• Valid passport

• Valid employment pass.

 

Normally it’s individuals who are above 21 years old who are allowed to borrow personal loan licensed moneylender Singapore. There is also an age limit of between 60 to 65 years. The lenders also consider the credit score of the applications. If you have a good rating you can increase your chances of getting the kind of loan that you have applied for.

 

How can you benefit when you take a personal loan?

i) Handling a medical emergency

In case you have a huge medical for your loved one that you are wondering how you can settle, then a personal loan is the best.

ii) Handling family emergency

You can also use it is meeting some emergencies such as funeral expenses.

iii) Vehicle repair

If your truck, motorcycle or car has broken, then you can borrow a personal loan to repair it.

iv) Settling credit card

Since personal loans have lower interest rates compared to credits, you can borrow one to settle your debt.

v) Education expenses

You can also borrow a personal in buying an expensive book or buying a new laptop for your coursework