You never can tell when a difficult financial situation may come into your life. Sometimes, unexpected moments arise, and you may find yourself in dire need for an immediate source of emergency funds. Your bank savings may not suffice, and you cannot always count on your family members, friends, and colleagues for financial assistance. If this is the case, how can you possibly get through a tough money issue?
This is why for most Singaporeans, consulting a licensed moneylender can make a huge difference in how they obtain the extra cash they need. These businesses offer a way for people to get by such unexpected situations, which require fast money to cover pending bills to be paid in a matter of days. The approval rating is also much higher, as compared with a bank loan. Not only can you send in your loan application efficiently and conveniently, but you no longer have to subject yourself to a lengthy waiting period to determine your status whether you may be approved of a loan or not.
But you cannot simply rely on any moneylender in Singapore. You have to be very cautious of who you deal with. There are trustworthy lenders in the country, but there are also those who take advantage of a person’s difficult situation and hike up the interest rates just to provide clients with the amount of money they need. This is why choosing a licensed moneylender is your best bet if you want to be sure that there are no inconveniences along the way.
Below are among the benefits of choosing a licensed moneylender for your financial concerns.
1. You are aware of the interest rates, maximum loan amount, and schedule of payment.
When you consult a licensed money lender, there is no guessing as to how much you can loan or the interest rate that is placed on top of the principal. You are notified ahead of time about the amount you qualify for, depending on how much you are making each year. This is a reasonable thing since you can prepare for your loan repayment and not undergo unpleasant surprises when the time comes that you need to settle your debts.
As for the payment schedule, this is usually fair and legal. You know exactly when you should pay, which means you can already set aside a specific amount once you receive your salary to pay off your loan. For those who are in a tough financial crisis, this is very important since they can already budget their money for their basic needs and loan payment.
2. There is faster approval time for your loan application.
Some situations just cannot wait any longer before your next salary comes for you to settle an immediate expense. Whether it is a minor car repair, clinic expenses, or utility bills, the cash you need must come at the instance you need it. Otherwise, serious problems may arise, which will only add to your stress level.
When you deal with a licensed moneylender, you will be able to fill out and submit the application form online. Then, basic documents will have to be submitted for the lender to conduct checks on your employment status, income, and probably existing credit card debts or loans with other lending companies. These will impact your chances of being approved of a loan, but without intensive focus on your credit rating.
But since the whole process is conducted in a professional manner that complies with the standards set by legal authorities, you can be sure there are no scams to worry about. This is why it is always a smart move to make sure the lending company is indeed licensed and legal, since the last thing you want to go through is to borrow money from a fly-by-night lender.
3. There is a physical office you can visit
When the time comes for you to sign the contract once the loan application is approved, you will need to go to the lender’s office for this process. It is indeed comforting to know that the company has an actual office you can go to whenever you have any concern with your loan. They even have a registered landline that you can contact, so you know you are dealing with a legitimate company for your financial needs.
Only licensed moneylenders have an office and landline that are elements you should look for when searching for a lending institution in Singapore. If you encounter texts or phone calls from a mobile number that encourage you to take out loans from them, simply ignore these. You can be sure that licensed moneylenders are not engaged in such tactics since they comply with the IPTO’s guidelines to respect the privacy of individuals and not provide false advertisements about their business.
4. The contract has everything you need to know about your loan
Always request for a written agreement about your loan. This piece of paper is something you can hold on to in case the lender requires you to pay a certain amount that is not even stipulated in the contract. This is why it is also important that you read and review the details of the agreement before you affix your signature since once you have signed it, this means you agree with every item indicated there. So, do not make a mistake of blindly signing a contract unless you are aware of what is in there. There may be clauses or hidden items that can be detrimental to the safety of your properties.
Illegal money lenders do not provide contracts, which makes them unreliable to deal with. They only offer verbal agreements, so when it is time for you to pay off your loan, there are unexpected fees and interest rates on top of your principal that you never knew right from the start. You will find yourself in deeper problems if you deal with these people since they may even harass you if you fail to pay on time. Threats over the phone or through SMS may come your way, and you may just have to deal with greater problems than what you had before you took our a loan.
5. Get the amount you need without the lengthy and extensive paperwork
Since licensed money lenders offer unsecured loans, then there is no need for you to go through tedious checks and credit score reviews that banks perform before they approve their clients of their loan. Just imagine how more stressful it would be if you need to wait too long before you can determine if you are approved or not.
With a licensed money lender, there is no need to be concerned about not knowing whether you qualify or not after a long wait. In fact, it takes only a few days from the time you submit the application form to the moment you receive a feedback from the lender. Then, you just have to sign the contract, so you can get your loaned amount. These are the quick and convenient steps you need to undergo as you apply for a loan from a licensed lending company in Singapore.
There are many benefits that money lending offers, which makes it attractive to individuals who are in need of fast cash for their personal needs. In case there is no way for you to ask money from your relatives and friends, you can always count on licensed moneylender to help you get through tough times in your life.
But it is a smart move to never trust just any lender in the country. You need to check their licenses, to make sure that they are legal to operate their business. After all, there are some fake and illegitimate moneylenders in Singapore that do not abide by the standards set by authorities. You may only end up worrying about ridiculously high fees and unfair payment schedules that illegitimate lenders may charge you with.