Singapore is considered one of the most livable places globally and not without reason. Apart from being the perfect combination of exotic and contemporary, Singapore has a range of
facilities for its citizens.
If you get in a financial crisis in the country, you can borrow money from quite a few authorised sources. There are several legally recognised money lender Singapore, and you can approach
them to help you out. Here is how money lending works in the country.
Authorised Lending
Money lending in Singapore was authorised through the Moneylenders Act. According to this Act, a person or an organisation must be licensed to be called a moneylender. However, those
excluded or exempted are not allowed to lend money unless the government reviews their petitions.
Hence, while looking for a moneylender in Singapore, conduct a background check to ensure that the lender can lend money under the Act. You may easily do this by checking the list prepared by the Ministry of Law. If you find your lender’s name on the list, it means they are legally licensed to lend you money.
Ability to Repay
Money lending in Singapore works in pretty much the same way as it works elsewhere. Before applying for any type of credit or loan, you need to be sure about your repayment capacity. There
is usually no upper limit to how much you can borrow in a secured loan, but for unsecured loans, the amount cannot exceed $3000.
Once you agree, you have to sign a contract, and the responsibility of abiding by its terms will rest on you. You should ask about the interest charged and calculate how much you would eventually have to pay for timely monthly repayments. Usually, licensed moneylenders in Singapore are not allowed to charge more than 4% as interest.
Knowing about Other Charges
If you cannot repay the borrowed money on time, you will start incurring extra interest as a penalty for not complying with the rules of the contract. That will increase your debt, and you
will end up paying a lot more in the long run. You might also have to pay additional fees like loan approval fees and other legal costs.
Details Required for Borrowing Money
If you need to borrow money from a lender in Singapore, you need to provide them with necessary details like your name, date of birth, nationality, address, email, and contact details. In
addition, you also need to provide them with payslips and income proof- especially those of the preceding three months before your loan application, along with income tax statements.
If the lender asks, you should also produce documents like employment passes, passports, bank statements, tenancy agreements, and additional documentation. You might also have to undergo a quick background check, and any discrepancy in the documents may result in a rejection of your application.
Loan Approval
Once your loan gets approved, you will receive the loans principal amount, and licensed moneylenders in Singapore cannot deduct more than 10% of the amount as a loan approval fee.
You should also make sure to obtain a copy of the loan agreement. Also, ensure that you obtain a receipt whenever you make a repayment.
If you borrow from a licensed moneylender in Singapore, the entire process will be carefully chalked out for you. The lenders will tell you about all the necessary documentation and the extra charges with complete transparency.
If you can’t repay the money for any reason, they will also help you with a refinancing plan.
Either way, your financial woes will be taken care of, and you will get access to the funds you need with ease.
