Tips To Help You Find A Reliable Moneylender - Rest Nova Site

Tips To Help You Find A Reliable Moneylender

Tips To Help You Find A Reliable Moneylender

Most people, including you, would require a loan at some point. It could be for personal, business, or other purposes. But what’s the first option that comes to mind while thinking about loans? Banks right?

Although banks give you the money you require, they have plenty of disadvantages, including a lengthy application process, inflexible repayment terms, collateral, and a high chance of rejection because of a poor credit score.

The best alternative is to approach private lenders such as Bugis Credit, who provide you the money required in a short time, following a straightforward process.

But if you have never borrowed money from a lending company before, you should have some idea about them before proceeding. Below are some questions that will acquaint you with the entire process.

Why should you borrow from lenders?

Lenders usually don’t consider your previous credit history while approving the loan, give you the option of repaying the amount in installments, and allow you to borrow an amount immediately with a low-interest rate.

The advantages of borrowing money from lenders are infinitely more in number compared to banks, especially if you face a financial emergency and require cash immediately.

Things to consider when choosing a lender

What types of loans do they offer?

Licensed moneylenders offer different types of loans, including personal, business, monthly payday, foreigner, and bridging. Here is some information about each of them.

Personal loans

These don’t require collateral and come with a fixed interest rate. To qualify for it, you should earn a salary of at least 1,500 SGD. However, you should use the money to meet emergency expenses rather than debt consolidation, as doing so could cause various complications later.

Payday loans

These are extremely helpful for salaried personnel strapped for cash at the end of a month but who have a financial emergency. The money is a quick personal loan until you receive your next paycheck.

Monthly loans

Also known as a monthly installment loan, it is ideal for larger amounts than paydays. You can repay it over the course of several months until you have paid the total amount.

Do they have a license?

You should never borrow money from lenders that don’t have a license. The best way to find licensed companies is through a List of Licensed Moneylenders released by the Ministry of Law. Checking their license and certificates helps you avoid being cheated or harassed.

What is the borrowing limit?

Most lending companies limit the amount of money you can borrow, depending on the type of loan. For example, the limit is one month’s worth of income for payday, and for business, 10,000 SGD to 200,000 SGD. The exact amount depends on factors like legal requirements and qualifications.

How much interest rate do they charge?

The Ministry of Law in Singapore has set a maximum interest rate that lenders can demand, which is 4% per month. The rate is fixed for all types of loans, including secured and unsecured, and applies to all income.

What are their fees?

The law in Singapore prohibits lenders from charging more than 60 SGD each month for late repayment, 10% of the principal amount, and legal costs involved in the loan recovery.

You should borrow money only from licensed lenders like Bugis Credit, who provide the necessary assistance and approve your application in a short time. They provide you with a customized plan depending on your requirements while offering a low-interest rate, making lenders a much better option than banks.