Taking Loan from Licensed Moneylender Singapore

You should keep these key points in mind while taking loan from Moneylender Singapore

1. Before approaching a Moneylender Singapore, think about other options, such as the various financial assistance schemes provided by various government agencies. You can contact the agencies to learn more about their programs

1. Any loan contract you enter into with a licensed moneylender is legally binding on you.
2. Consider whether you can meet the contractual terms in light of your income and financial obligations. Borrow only what you need and can repay. Be aware that if you fail to meet the contractual terms, the late payment fees and interest payments will put a financial strain not only on you but also on your family.
3. By law, moneylenders must explain loan terms to you in a language you understand and provide you with a copy of the loan contract. Make certain that you fully comprehend the contract's terms, particularly the repayment schedule, interest rate, and fees.
4. Think twice before agreeing to any contractual term that allows a moneylender to lodge a caveat on the sale proceeds of your real estate property in the event of loan repayment default. When a caveat is registered against your property, you will be unable to sell it unless you first repay the moneylender in full. If the repayment is made from the net proceeds of the property's sale, it may result in the loss of the property.
5. You should shop around for the best terms from various moneylenders. You should not commit to a loan until you are completely satisfied with the terms and conditions.

Interest rates moneylenders Singapore can charge

There is no shortage of services in Singapore willing to lend you money. Banks have made personal loans extremely easy to obtain, with approval times ranging from a few hours to a day or two. Credit card debt, albeit at high interest rates, is also available. Then there are the so-called "licensed money lenders," who will lend money to almost anyone. Who are these individuals, and is it worthwhile to borrow money from them?

According to the Singapore Ministry of Law, there are approximately 160 licensed money lenders in Singapore, with 5 more suspended. These companies target borrowers who are having difficulty obtaining loans from more traditional sources such as banks. Because banks typically require a minimum annual income and some level of good credit history, they frequently reject loan applications from people with low income who desperately need a loan to pay for an emergency. As a result, licensed money lenders make loans to these people at higher interest rates than usual.

Licensed money lenders are establishments that offer loans similar to payday loans with extremely high interest rates. As a result, we strongly advise against using these services unless there are no other options. We summaries and compare the main characteristics of licensed money lenders and banks below.

Fees Structure of moneylenders Singapore charge

With effect from October 1, 2015, all moneylenders may only levy the following fees and expenses:

• a fee of no more than $60 for each month of late repayment;
• When a loan is granted, a fee of no more than 10% of the loan's principal is charged; and
• The court ordered legal fees for the moneylender's successful claim to recover the loan.

The total charges imposed by a moneylender on any loan, including interest, late interest, upfront administrative and late fees, cannot exceed the loan's principal.

Top licensed money lenders offer details about starting a company in Singapore at low interest. Call 8504-2319 now!