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    Moneylenders have several perks for you as a borrower; especially if you know you are going through a licensed moneylender. But, there are also some things that are not so nice when it comes to taking out a personal loan or a money loan as a borrower. So, prior to jumping in and signing the dotted line, indicating you are going to repay a loan amount you choose to take out,you should have all of the facts in hand. Before you are ready to take out a loan with a licensed moneylender (or are thinking of taking one out with an unauthorized lender), you should make sure you are properly informed of what your options are as a borrower. If you are considering or if you are ready to take out a loan, and are simply trying to find the right money lender, these are a few things which should help you in the decision making process as a borrower, so you make the right choices when the time comes to take out the loan you need.

    Credit cards

    This is a bad debt and one you should avoid if it is at all possible. Interest rates easily exceed 35% in some cases, and even on the lower end, are going to come in at about 25%; so you are basically going to make repayments on interest, and will see that it will take you forever to repay the interest. you are also going to be limited in lending amounts; with credit cards, you are not going to get as much as you would with a personal loan or even with some moneylenders when taking out a loan. So, make sure you know there are other places and ways in which you can borrow, as opposed to simply taking out a high interest credit card, when you are in a dire situation, or think you don’t have any other options when it comes to borrowing money.

    Car loans

    These are also bad loans, but they are often unavoidable for those who are going to buy a car in Singapore. Cars are very costly in Singapore. Not only to purchase, but also to do maintenance work and to do other needed repairs. In many cases, you do not have $70K or more lying around, and in such cases, you are going to have to rely on the car loan in order to purchase the vehicle. You will find that there are different lending terms, and there are different rates out there. So, if you are in a position that you need to buy a car, do not have the cash lying around (as most people do not), and have no other solution, at least make sure you compare several money lenders before you choose one. It is the only way to ensure you get the best terms, on this bad loan type, which you simply can’t avoid when you need to buy a car for daily use.

    Home loan

    This is a great loan, and it is one you should take out if you are ready to be a homeowner. It is going to help increase your credit score, it is going to help you purchase the home you want to live in, and it is going to help you build up your equity as a borrower. You will find that there are several lenders you can go through with the home loan purchase process as well. So, when the time comes for you to sign the dotted line, and take out a mortgage to buy the home, it is extremely important you fully understand the loan. From the amount you are taking out, to the date your mortgage is due, to the differences in a 30 year or 40 year loan, there are several nuances, so you have to familiarize yourself with them when you are ready to borrow and buy the home of your dreams and become a new homeowner.


    This is also a good loan category to borrow, and the interest rates are typically quite low, so you are not going to be paying on the interest alone. It is important to know there are different money lenders who will offer better terms, based upon the type of education you are getting, the institution,and other factors. Additionally there are grants you can qualify for when going to school, so it is important that you do make sure you have these in order before you simply take out loans, so you know you are only borrowing what is essential when you do go back to school.

    Business loan

    This is a “neutral” loan category. It can help you build equity, buy equipment, land, or other pricey items you otherwise couldn’t afford to run your business. Conversely, they are often going to be linked to higher interest rates, and sometimes you are going to be limited in the amount you can borrow as a business owner, especially in the case of a start up or a smaller business that you operate. If you are in a situation that you need to grow, they can help you build up equity; but, if it is not extremely essential to operate the business, then you might want to avoid taking out this business loan, as it is simply going to require you to pay additional interest rates on monies that you can avoid paying when trying to operate and make a profit as a business owner.

    You have options as a borrower, and there are several lending options available to you when you are in need of cash. Make sure you know what the options are and who the right lenders are for you to go through. This is a simple guide to get you started and help you make wise choices as a borrower. Before you jump in and apply for that shiny credit card, or the personal loan you think you truly need, step back and really weigh your options, so you can make an informed decision and avoid high interest rates when you don’t need to take them on.