In recent years, licensed money lenders in Singapore have been increasingly popular in high demand. Not sure if it is an alarming issue that the government should be concerned with; but, is a money loan or personal loan right for you? Understand what exactly is a personal loan and what are the requirements in order to be qualified for one. There should be many questions running through your mind right if you are in a rush for quick cash flow and considering taking up a loan. So, let’s take a look into the personal loan, how should you go about applying, and what are the requirements in order to get approval upon application of the loan.
One of the characteristics of this personal loan type is that the repayment is flexible. It depends on your income, your credit score as well as other factors loan approval and the amount that you are asking for. It will obviously going to differ for each and every applicants accordingly to the repayment capabilities. So who should apply and when should you apply?
When should you consider a personal loan over other loans?
As you are reading this at this very moment, you might probably be short of cash flow and contemplating whether if it is a right choice to visit a licensed money lender in Singapore. Before you do that, always make sure you check if the money lenders that you are considering are legalised and authorised by Singapore Ministry of Law (MLAW). Some loan sharks might create a smokescreen and misused the name and get to you. Please be more careful!
Hold up, think about it. Is a personal loan the right one for you? Firstly, you got to bear in mind about the interest rate. As you are not get a loan through banks, you are in need of quick cash, and no credit check is run, you are expected to pay a higher amount in interest. However, one of the pros of getting from money lender is that the repayment is pretty flexible and you will get at least 90% loan approval rate as compared to banks. Usually the interest rate will range from 4.5% and above? Of course it is a case by case basis, depending on how much you are loaning.
People often apply for personal loan for personal usage such as emergency expenses, monthly billing or even for your mechanical issues that you need to be in for a quick fixed. Or maybe even for your wedding and vacation expenses. Usually if you approach banks, these “personal” reasonings might be invalid and the rate of getting approval is extremely low. You could have been waiting for nothing in vain and all these time waited aren’t worth it. Imagine going through the whole loan process and after two or three weeks of waiting (depending on banks), your application might get rejected.
Is it a good idea?
If you believe that you are a good candidate for a personal loan, sure why not? If you are qualified and meet the criteria such as having the income minimums met, so you should go ahead and apply. But before you jump into it, you should take some time to consider these few other options in order you make the right decision when the time comes.
Who should apply for a personal loan and when is it a good idea for you to do so?
1. Debt consolidation
You may feel skeptical but with personal loan, you are actually able to lower down the total expenditure when you use the funds for other debts payment. Sometimes the interests could be even lower than credit cards. Not only you are able to repay what you owe in a shorter period of time, you can also do so by utilizing a smaller amount of your income and get lower amount in interest. Hence, it is win-win situation and you simply wish to pay off the money which you owe to other creditors.
2. Cover other debts
In the case of consolidation, if you have to pay off other debts in which carry a much higher interest rate than the personal loan you are applying for, this might also be the right time for loan application from money lender. Not only are you going to pay off debts in a shorter period of time, you are also going to find that you are going to do so for a smaller amount as well. You might be surprised that it would be wise to apply loan from a licensed money lender as compared to banks.
Bearing in mind that you are applying for loan to pay off other debts, in which you still have to earn enough money to pay off the personal loan as well. With that, it comes with a higher interest rate yet the repayment duration is negotiable depending on your credit score and your relationship with the money lender itself. As long as you pay off your debts, the money lenders are pretty lenient.
Ultimately, a personal loan is going to make more sense in those cases where you are going to pay off debt faster, where you are going to pay off the principle faster, and where you can reduce your total amount of debt owed in a shorter period of time. When the time comes for you to make a decision, you should take the above for considerations. Take time to think through about your financial status, whether you are capable in repaying for what you loan. Licensed money lenders are not charitable as they will not be nice if you do not pay off. They are capable of taking you to court and handle it through the most legalised manner after all they are different from what we know them as “loan sharks”.