A loan can be a godsend, especially when you are consolidating debts. It can be unsecured, so you do not have to borrow against any valuable assets you own. This makes it less risky for you in case you run into some trouble in the middle of your personal loan’s tenure. As you can use the money for mortgages, revolving lines of credit, or wherever you see fit, you will be less pressured to explain where you will use it. In fact, you may not even be asked about it at all.
If you are planning to apply for one soon, going to a moneylender in Singapore may be more advantageous than dealing with a bank. Why? You can find out more about it below:
Unlike bank-issued loans, those offered by moneylenders do not come with fixed interest. This is good news, as the extra money you pay to borrow the cash decreases every time you make payments. In a way, you are incentivized not to miss your repayments. For instance, if you borrowed $20,000 and you have already paid $8,000, only the remaining $12,000 would be considered for interest computation.
Moneylenders do not process loan applications when there is insufficient documentation, but you can expect less paperwork. Banks are notorious for tons of paper requirements, rendering the entire process a bit more cumbersome. If you are in a hurry, walking into a moneylender’s office should be your priority. If you bring everything you need to get your creditworthiness assessed properly, you may receive the money as fast as 24 to 48 hours.
Compared to banks, moneylenders are more lenient when it comes to repayment plans. They are more open to unconventional terms because they make every effort to help their customers avoid non-payment. On the contrary, banks have strict rules in place. Individual branches do not come up with their own regulations, and they only follow orders from their higher-ups. In many cases, the hands of bank representatives are tied and cannot accommodate special repayment requests. Negotiate all you want, but that could go futile.
Singapore banks only cater to citizens and permanent residents. They mostly do not entertain loan applications from foreigners living in Singapore. In addition, traditional financial institutions are not usually interested in borrowers whose annual income is less than $20,000.
Moneylenders have minimum income requirements, too, but not as much as banks. They serve customers who earn less than $10,000 per year. Their doors are also open for foreigners residing in the country. The maximum amount a borrower may qualify is based largely on their annual income and residency status, but everyone (except tourists) is welcome to apply.
Admirable Lending Behavior:
The moneylending industry is highly regulated in Singapore to protect the best interests of its borrowers. The government provides a Registry of Moneylenders, making it easy to identify whether a business can be trusted or not. If a licensed moneylender misbehaves, the authorities encourage you to report any unacceptable behavior.
Banks and moneylenders have unique selling points, but the latter is more appealing to most borrowers. Shop around as hard as you can and use the competition to get the most favorable personal loan available.