Singapore is an independent
country found in the Southeast part of Asia. The quality of living by the
general population is rated high. However, despite its good economic standing,
there is still a probability that people will need an immediate source of money
during certain times. One of the most popular sources of direct money would be
moneylending services. Foreigners may find it daunting to acquire a loan from moneylenders
in Singapore due to the lack of information about the process and the law
surrounding it. However, when you choose a licensed
lender in Singapore, you can guarantee that you will gain many benefits
from it.
Different Situation Where
You Need to Borrow From Money Lenders
Before you even decide to
borrow money from a lending company, you need to be sure that you need it.
During economic uncertainty, moneylending agencies would not be a favorable
choice. You need to consider other kinds of financing, your ability to get out
of the loan, and your necessity in spending the money. Here are some of the
valid reasons you may have when you are contemplating borrowing money from
money lenders.
Business Loan
If you have a viable
business idea and want to turn this concept into reality, money lenders
would be your immediate solution if you do not have a good funding source.
Major Financial institution such as bank does not approve a small start-up
company. On the other hand, government funding presents many challenges and
requirements before you are finally approved.
Education
If you are searching for ways to
finance your son's college education, the money lenders can also provide you with
an immediate source of funds for your son's tuition fee. Those families who find
it challenging to support their kids' education, especially during the final
years, can depend on money lenders.
Medical Situation
A Health emergency is an
unforeseen event. In a typical scenario, we have reserved money for this
situation, but there are times when we would choose to spend the money for more
immediate needs. A medical emergency is already an emotionally draining
situation, and you might want to lessen the misery by dealing with the medical
bills with the help of money lenders. You can also guarantee that the family
member will receive immediate attention from the medical personnel. To foreigners
facing the same situation, do not fret as the moneylenders in Singapore also
offer the same benefits. Authorized lenders provide a "Foreigner Loan"
wherein the foreigner can borrow money to assist them in an unavoidable
emergency.
Renovation
Suppose you want to renovate
your house and keep it in excellent form to withstand severe weather conditions.
In that case, money lenders will provide you with some assistance in redesigning
and renovating your house or office. It can help you apply repairs on the
portion of the house that requires an immediate fix and prevent further damages
from your property. They can even be a source of your flip
and fix loans.
Moneylenders in Singapore will
be able to provide you with money regardless of your reason for borrowing. It
is an ideal and hassle-free solution. However, you need to ensure that you
really need the money and have ways to pay the loan; otherwise, your credit rating
can be detrimentally affected.
What Are the Benefits of
Borrowing from Moneylenders in Singapore?
Any person can create a
website and claim to be a lender willing to aid you from your financial
difficulties. Unfortunately, some of them are scams, so you need to be wary
when dealing online. It would be best to deal with trustworthy and reliable
lenders in Singapore to avoid any inconvenience.
Assurance
Since Singapore employs strict
compliance and standards when lending money, you are likely to share your
information with a trustworthy company. Remember that you are not just sharing
sensitive information with the lender but also entrusting them with your
future. Before someone can enter into the lending industry in Singapore, the
government will require them to complete a comprehensive requirement of form. They
also need to have good behavior with no past criminal or civil records. It assures
you that the lending company will be dedicated to providing help to those in
need.
Protection
If you borrow from a moneylender
in Singapore, rest assured that your rights as a consumer are protected 100%. It
means that you can comfortably share sensitive information with them since they
are liable with it if there is a breach in security.
Peace
Having peace of mind knowing
that you are borrowing money from an authorized lender in Singapore is one of
the things that consumers consider. Since you require cash, you might want to eliminate
the additional stress caused by borrowing through a third party. An authorized
lending company in Singapore will truly bring you comfort since they are
devoted to providing their assistance to you.
Finally, before affixing your
signature on the contract or agreement, make sure they are appropriately
authorized and well documented. Check that the application is legal and
detailed, including the amount, the borrower's name, and the payment option.
What Are the Requirements
To Borrow Money From Moneylenders in Singapore?
Singapore
is a place of a booming economy; it is considered one of the four Asian tigers.
The citizens are highly benefiting from it through their generous salary. However,
despite the prosperous economic state, there will always be a time when people
will need immediate cash to address the current situation, such as unforeseen
events, sickness, or to fund a new business venture. Nonetheless, before you
even manage to get approved by a lending company, there are specific
requirements that you need to meet. Here are some of them.
Completing a Legal
Agreement
When
you borrow money from a lender in Singapore, you have to make sure that your
rights are protected. Verbal agreements will not protect you, and it is the most
common type of agreement to breach. The only thing they need to do is deny the
fact that there is a transaction happening between the two of you. When
analyzing the legal agreement, make sure that everything is detailed on the
contract, such as the amount of the money you borrow, the name, and the payment
plan. You also have to make sure that you understand the contract well. Based
on the current law, the lenders must explain the terms and agreements using the
most basic words that you can easily understand. Pay a considerable amount of
attention to the charges, interest rate, and repayment schedule.
Proof of Income
The
amount of money you can borrow on a moneylending company will be highly
contingent upon your annual salary. If your yearly income is less than $20,000,
the maximum amount of money you can borrow would be $3,000. An aggregate amount
of 2-month income can be borrowed if your annual salary falls under the
$20,000-$30,000 margin, 4-month salary for $30,000-$120,000 and any amount of
cash when your annual salary exceeds the $120,000 level.
Finding a Guarantor or a
Surety
A
guarantor is a person responsible if the debt will not be repaid. So in case
you are seeking a surety, make sure that they can fully understand it. Once
someone agrees to be the surety, make sure that you give him a copy of the
contract written in the language that he can understand. The lender should not
require the NRIC card of the surety as well as any personal documents such as a
passport or driver's license.
Finally,
you should be of legal age when you borrow from a moneylender in Singapore.
After approval, ensure that you retain all the account statements and receipts.
Also, pay
the loan at the perfect time to avoid incurring late interest and payment
fees.
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