Receiving a loan from a bank probably not be smooth and sometimes you really need an urgent loan with fast approval time to taken care of an emergency expense. Unsecured personal loans fromlegal money lenders in Singapore may be the most ideal option in certain conditions.
Some customers may perhaps have financial needs for a renovation loan, school fees, emergency medical fees, vacations or someunforeseen circumstances which demand urgent financial needs.
Securing A Personal Loan from a legal and licensed Money Lender InSingapore
In advance of taking a personal loanfrom a licensed money lender, we encourage you to read up more about the Money Lenders Act in Singapore. As a borrower, you rightsare protected under the law in Singapore– check up on this guide to borrowing moneyfrom money lenders in Singapore in advance of taking a personalloan.
New Regulations For Money Lenders In Singapore (Effective Oct 2015).
New regulations for money lenders are added to tone down a borrower’s borrowing cost (interest rate) and also to take care of the number of default payments. As aconsumer, it is wise foryou to check out the details with regards to administrative fees, contractual terms which are unfair to you, deceitful andunfair money lending practices and the interest rates for your money lending contract.
The new regulations specifies a cap of 10% max upfrontadministrative fees, 4% maximum nominal interest rate (NIR) monthly, 4% maximum late interest rate per month, loan payment late fees being capped at$60 per month, no other additional fees allowed to be charged by any money lender and acap on borrowing cost.
Selecting A Money Lender In Singapore.
Before you take a personal loan from a money lender, ensure that the money lender is licensed in Singapore. Once you have listed a list of money lenders, do your due diligence and check out themoney lender’s reviews online.
Making an application for A Personal Loan With a Money Lender.
You must be hired and you will be requested to provide your last 15 months of CPF contribution historystatements together with your NRIC and the lastest pay slipsif relevant.
Unsecured Personal Loans.
Basing on the Singapore Money Lenders Act, for unsecuredpersonal loans, you can borrow:.
Up to $3,000, if your annual income is less than $20,000;.
Up to 2 months’ income, if your annual income is $20,000 and above but less than $30,000;.
Up to 4 months’ income, if your annual income is $30,000 and above but less than $120,000;and.
Any amount, if your yearly net incomeis $120,000 and above.
Please do not over-stretch your finances and undertake a loan which you can not servicelater. Always exercise vigilance.