Often, we face circumstances where we do not have liquid assets or savings and have to turn to money lenders to help us out. If you are trying to find the best way to get a money loan in Singapore, then the answer is not from banks but from private licensed money lenders.
The government has authorized many money lenders in Singapore to open their companies. They will have a proper license under the money lending activities, and they will be the best bet for you to get a speedy loan without any hassle.
Things to be aware of before applying for the loan-taking process
Before you fill in the application process, you have to make sure that you know all the nitty-gritty details about the terms and conditions and by the company. It is better that you hire an independent legal advisor who will help you make the best financial decision for yourself.
Even though there will not be any unscrupulous conditions written in the contractual bond, there are many legalities that the layperson will be unaware of, which can make you fall into trouble. For this reason, it is better to take the help of a lawyer who will be able to give you sound advice by taking into account whether your income will be enough for you to repay the loan within the stipulated time.
Also, keep in mind that different companies will have different policies regarding their loan-taking services as well as different interest rates. For this reason, you will have to do thorough research about which company you shall go to for taking out the loan. The company may also charge other fees as permitted by the law, which includes:
- The loan approval fees, which can be up to 10% of the loan principal
- The late payment fees can be up to $60 per month.
- Other charges for legal costs incurred by the money lending company if you do not pay back the money within the stipulated time and they have to take the help of other agencies to get it back.
However, you must keep in mind that the total charges imposed by the money lending company on your loan cannot exceed the principal amount under any circumstances.
How to fill in the application process for borrowing money from the licensed moneylenders of Singapore?
The money lending process has been made easy so that people in adverse situations can fall back upon these companies for speedy loans. Therefore they have made the application process extremely easy. No more do you have to stand in long queues to get your loan approved as you can do it from the comforts of your home.
You just need to go to the money lending company’s website and click on the application form. It will ask you to fill in the following details:
- Your full name as well as the date of birth.
- The personal identification number
- Your nationality
- Your permanent resident address
- Your email address as well as contact number
- And of course the amount of loan you want to take out.
You may also have to fill in the details for the surety to the loan if asked by the particular company. Since you will be giving your details, make sure that the company you are choosing is from the Ministry of law’s official website.
If you are unaware of this list, you should visit the Ministry of Law’s official website and download the complete list of companies that have licenses for legal money lending.
You will also have to provide official documents, which will be used to verify the details you have provided. You will have to submit your proof of income, utility bills, income tax statements, etc.
Amazing option for foreigners as well
Singapore is a melting pot of different cultures and people worldwide from here for business or even pleasure. Food is money lending companies have also made it possible for foreigners to apply for alone if facing a money crunch in a foreign land. Foreigners will have to submit extra documents like their passport, original valid employment pass, a copy of the tenancy agreement, bank statements as well as appointment letters from their employers, along with the documents mentioned earlier.
Understanding how much money you can borrow
For secured loans, there is no limit to how much you can borrow, and it depends on the company. However, for unsecured loans, the government has placed caps so that clients will pay back the amount without facing any hassle. The total maximum amount that different clients can borrow depends upon their annual income.
- Citizens of Singapore and those who have permanent residence in the country and have an annual income of less than $10,000 can borrow up to $3,000, while foreigners residing in the country can only borrow up to $500.
- Citizens of Singapore and those who have permanent residence, as well as foreigners who have an annual income between $10,000 to less than 20000 dollars can borrow up to $3000.
- Citizens of Singapore with permanent residency and foreigners who have an annual income of at least 20,000 dollars can borrow up to 6 times their monthly income.
Now that you are aware of what sort of documents and the amount of money you can take out, there is no reason to panic. Take advantage of the speedy loan-taking-out process regulated by the government and get yourself out of the emergency. You do not need to worry as these companies will provide you free legal advice keeping your best interest in their mind so that you will be able to pay back the money within the stipulated time without any hassle. With the amazing customer service these companies provide, there is no reason you should not contact them and get all your doubts cleared regarding the loan application process of the licensed moneylender in Singapore.