The lending industry is ever evolving as Singaporeans are not afraid to venture more on it now that the needs for loans are becoming common in the society. With the tightening competition, each loan provider hustles to create innovative products and solutions to cater the expanding market.
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The increasing demands among Singaporeans and foreigners living in the city-state are caused by various reasons. These reasons are studied by lenders as they create innovative products to introduce to their clients. Different lenders may also offer services to different clientele though at times these may overlap.
The banks usually service only their own account holders and if you are planning to get loans from a bank, prepare yourself for a grueling process. Since the banks are being careful with the involved risks in giving loans, they require a long list of legal documents that you have to provide. To be sure that the borrower can pay back the loan with interest, the banks scrutinize your documents before getting approved. It takes almost a week for the cash to be disbursed. If you are a foreigner, you should know that they seldom approve expat applications even if you have good credit history in your country.
Banks have different products with different uses, yet these are all fixed with terms and conditions, making them the least flexible. They may offer a few tweaks, however they only have tight boundaries. While banks can offer higher loans, they require collaterals for certain products such as auto loans and mortgage. If you do not have large assets, it may be difficult to have your loans approved.
Banks usually offer the shortest tenure at 3 years and can be extended to 7 years with high interest rates ranging from 4.35% to 8%. It is a common thinking that banks can only offer loans to those who don’t really need it and they deny it to those in need, this makes low wage earners go to the next two options instead.
Pawning is has been known for its fast transactions, quick cash disbursements and availability to everyone not younger than 16 years old. These establishments are usually found near the MRT stations and connecting bus stations.
Pawnbrokers give only secured loans against collaterals such as jewelries, luxury watches and bags. If you do not have any valuables, you can’t get a loan from them. You also need to have an identification card. Even foreigners can get loans in pawnshops, if they can prove their employment documents such as an E-pass.
Since the collaterals do not have as much as the ceiling value of cars and houses, the loans can only have a maximum term of 6 months. The interest rate can start with 1.5%, yet every month it is topped with another 1.5%. The sooner you pay off the loan the less interest you will have to worry about. Failure to pay off the loans will automatically transfer the ownership of the valuables to the broker.
Emerging and going strong in the lending industry, a lot of Singaporeans are now going to moneylenders for various loans. Licensed moneylenders boasts of their flexible low interest rates capped at 4% by the Registry of Moneylenders. Since they require minimum documents for their loan process, they can approve and disburse cash in less than an hour.
Many moneylenders also offer expat loans. These loans are specially offered to foreigners in need of quick cash with no need of collateral.
If you are worried about the payment schemes, do not hesitate to talk to your moneylenders about it. The licensed moneylenders will be willing to create payment schedules to help you pay off your loans, and they will also guide you on how much and which loan can you get.
With these three lenders to choose from, borrowers must also evaluate the reason they are in need of quick cash to better make a clear decision on which one can give the best loan.
Singapore takes pride of its highly effective healthcare system which is the best in Asia Pacific. However, there is a possibility that some parts of the bill will not be covered by the health insurance. If you do not have emergency funds in your bank, chances are you need a quick loan.
Most lenders either banks or licensed money lenders offer business loans. You might want to start up a business and you need a capital to kick start it. Of course you need to hire some staff to help you out, machinery and possibly a place to rent. Business is booming? You still need a business loan to expand to a bigger place. You might also be considering automating your business to lessen your load and duties.
Some Singaporeans end up with a couple of debts with skyrocketing interest rates. Most of them choose to get a low interest personal loan to pay off their debts and finally be free with the heavy financial burden. It’s like combining your loans into one and lessening the interest rate at the most suitable tenure.
Surprising Increase in Bills
When you think everything will go on smoothly, the bills will come to pull you back to reality that your budget will not make it. If your next paycheck is just around the corner, but you need the cash now, all you have to do is apply for a quick loan.
Purchasing Second-hand Bags and Watches
Are you eyeing a luxury watch and a second hand suddenly came within your reach? It is hard to pass up the chance, yet being a second hand item from an individual means that you have to pay in cash. You can’t use the credit card you have been keeping.
Heard how the gold’s prices are being dynamic these days? A business put some stocks on the market that you think has great potential to grow? Sometimes there are good chances to invest, yet it is hard to pass up for the sole reason of not having enough cash.
Getting the Dream Vacation
There is a long weekend coming up, are you ready to grab a vacation in Bali? If you are a hard worker and you need a breather, do not deprive of yourself the grand vacation you have always wanted. Get quick cash to book you tickets.
With gambling habits, risks of losing money will never disappear. While some profess that it is just a timeout from the demanding work, others have made it a hobby. You know you can’t enjoy gambling if you have very limited cash to bet, so you will need more cash to try and hit the jackpot. In case you lost more than you actually have, then a quick loan is your escape ticket, just don’t over do it.
Regardless of your reason why you need a quick loan, wisely choose where you are getting your loan. Banks don’t disburse cash quickly, pawnshops require collaterals, and there are so many moneylenders to choose from.
How will you spot a licensed money lender from a loan shark?
First, you have to check the business name against the list of licensed moneylenders available in the Registry of Moneylender. If the business name is missing, it is most probably a bogus lending company trying to milk you money instead of helping you out.
How did you get to know the moneylender? The moneylenders are not allowed to advertise through SMS, emails, phone calls and even flyers. Licensed moneylenders can advertise through directories, their own business websites and in their business establishments.
Then evaluate on how they threat their customers. Are the staffs too pushy? Are they professional or using abusive language? Do they blackmail you? Some unlicensed moneylenders get personal information through social media to threat clients into signing contracts.
Despite any coaxing, threats or charm, never give away your SingPass. It is very personal and even licensed moneylenders are forbidden to gain any access from it. Should they need it to get further personal details, it should be you who have to key it in the computer. And if the moneylender refuses to give back your original personal documents, and then be alert. Most moneylenders need copies of your documents, but they should never keep you original documents.
Quick loans are great, but are the right processes of loans legally applied? If your loan has been granted without much of a fuss then don’t be happy just yet. Remember that loan sharks are just more than happy to quickly lend money as bait to a life buried in debts. Even heighten your suspicion if you are asked to sign a contract but you are denied of a copy. Remember that any financial transactions should be put in paper for documentation. As soon as you get your cash, count is before leaving the premises. You should get you approved principal loan as a whole and not in parts.
There are indeed a lot of moneylenders willing to help you out but some of them do not have the right intentions. Should you spot an unlicensed moneylenders or loan sharks, email the Registry of moneylenders at OneMinLaw@mlaw.gov.sg or call them at 1800-2255-529.
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