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    Getting Married In Singapore: Should You Borrow To Pay For Your Wedding?

    Your better half has finally said yes to your proposal, now it is time for you two to make it legal and get married.

    Of course, the wedding must be grandiose and memorable for everyone. It has to be magical and if you are getting married in Singapore, you and your beloved will no doubt have a wedding to remember.

    However, although weddings are supposed to be a joyous celebration, having one can be pretty difficult considering the cost of getting it all together. If you are getting married in Singapore, the prices may also cause you and your beloved to think twice about your wedding plans.

    According to an estimate from Yahoo Finance, getting married in Singapore would cost couples and their families up to $30,000 to $50,000. This price would include the venue rentals, reception, banquet, entertainment, bridal package and the video coverage. The banquets alone would eat most of the couple’s budget as there has been a 6% increase in some of Singapore’s top wedding venues this year.

    You would also have to consider things like the invitations, wedding rings, wedding favours and the cake when planning your wedding budget. Once you total everything together, you may need to consider how to fund it without having to worry about going into debt.

    If you and your partner would like to push through with a memorable wedding, there are ways to fund it. One of them is by going to the moneylender and taking out a personal loan to pay the expenses. Another is by asking the assistance of your family and friends to help you financially. While the second option is ok, it is not very practical. It is custom that the couple must shoulder a part of the ceremony aside from getting aid from family and friends.

    What Should You Consider Before Getting a Wedding Loan?

    Here are the things you and your partner should consider before you take up a moneylender personal loan for your wedding:

    • Do you both have a stable job that can help you pay the loan?
    • Are you and your partner in agreement in getting a loan?
    • Have you done your research on how much you will spend?
    • Do you have extra funds that would cover your expenses and loan payments for the next 6 months?

    If the answer is yes to the following, you can look into getting a loan. Of course, don’t forget that you can still get your dream wedding on a smaller budget. It will still be unique regardless of how simple or grandiose it would be.

    Advantages of Getting a Wedding Loan?

    When you and your partner decide to get a personal loan for your wedding, there are some positive benefits you may enjoy as you plan your wedding.

    First, you do not have to ask anyone to assist you in getting your wedding paid. While family and friends would be open to helping you pay your wedding, it would still cause them to worry. If you are able to fund the wedding by yourself, you can ease their worries and celebrate with you on your special day without worrying about anything.

    There is also a possibility that some of your family and friends who would help you sponsor your wedding may try to influence how you should do your wedding. You may even find yourself under a great debt to your family member and would need to do them a favour or two in the future.

    If you take out a personal loan for the wedding, you both have full control over your wedding. You can make the decisions on how things should go on your special day. Of course, you can take into account your family’s requests for your wedding, but you will still have the final say.

    Getting a personal loan for the wedding may also help you allocate for the future. While you can opt to pay in full if you have the funds for it, what happens after the wedding is unpredictable. Having ready funds in your account for all eventualities is still idea rather than fully paying your wedding and not have backup funds for sudden occurrences.

    Finally, weddings are supposed to be memorable and it must be one that everyone should not forget. If you have enough financial resource, you would be able to pull off that magical wedding you have been dreaming off for you and your partner.

    Disadvantages of Getting a Wedding Loan

    Unfortunately, taking out a personal loan from a moneylender to get your dream wedding does have some setbacks that every couple should consider.

    First of all, you and your partner would be beginning your forever in debt. While you may have gotten your dream wedding, you and your partner now have to consider how to budget your pays to pay the wedding loan. Repayments may take a year or two depending on how well you both manage repayments and how much the loan is all about.

    If you do take out a personal loan for the wedding, you may end up paying more than what you should for your wedding for the lavish add-ons you add in extra. Some extra add-ons for weddings can be pricey and when the day over, you may regret spending for those extras as you pay the loan.

    Remember

    Dreaming of a luxurious and memorable wedding is a dream every couple would like to have on their special day. It would mark the beginning of their forever together and spent with the ones they love. However, couples must consider if planning for a lavish wedding is practical especially now that you are starting a life together.

    If you do decide to pull off a moneylender personal loan for your wedding, make sure you both will be able to manage to pay it regularly. If you don’t, you and your partner may find yourselves starting your new life together in debt and that is an unpleasant way to start your forever.

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      Personal Installment Loans vs Personal Line of Credit: How Should You Choose?

      When you are in desperate need of funds, there are many choices to choose from that would help you get the money at record time. If you are in Singapore, you can avail a personal loan from banks, moneylender firms, credit unions and other credited institutions to get your funds immediately.

      However, there are at least four different types of personal loans available in Singapore and if this is your first time to apply for a personal loan, it can be confusing to decide which one to get.

      So, what are these loans?

      Personal Loans Available In Singapore

      The four types of loans available in Singapore are as follows:

      • Personal instalment loans
      • Balance Transfers
      • Personal lines of credit
      • Debt Consolidation Loans

      Both personal credit lines and personal installment loans can be used for anything you need money for like medical fees, expenses, school fees and the like. If you have an inconsistent income, getting a personal line of credit loan is advisable.

      On the other hand, both balance transfers and debt consolidation can only be requested if you are paying off debts like credit cards or personal loans.

      Usually, many people use personal installment loans or personal lines of credit to get funds for their needs. However, how do both types of personal loans work?

      Personal Installment Loans: How does it work?

      As the name implies, personal installment loans are loans that you pay in installments with its amount equal to the other over a certain period of time. Usually, the installment amount and the payment duration are predetermined, but there are some moneylenders or credit unions that may enable you to choose your terms and payment options.

      There are some pros and cons in utilizing personal installment loans and they are as follows:

      Pros

      1. Easy installment payments
        One of the many reasons installment loans are preferred by many is because you do not have to worry about high installment payments. Since the amount is reduced to a manageable level and you have a long time to pay for it, you can adjust your budget to accommodate it.
      2. Helps You with Investments
        Since installment payments are small, you do not have to worry about paying high interests. You can use your extra savings from your installments or from your actual savings to invest on a stock market or other fund programs that would have higher returns in the future. When you diligently follow up on payments, you would be able to earn more than you spend paying interests.
      3. Lower borrowing cost
        Although you are borrowing a large sum, you are going to pay it for a long period of time. As a result, the interest rate is lower and you are only paying a small amount per month.
      4. Fixed payment
        Since the loan is fixed in terms of how much you need to pay every month and its interest rate, you do not have to worry about the monthly blowing to a huge amount.

      Cons

      1. Strict Approval Requirements
        Before you can get a personal installment loan, you would be background-checked by the loan providers. From your credit score, sources of income to your capacity to your personal details, everything would be checked. If the loan provider spots something, you would not be able to get the loan at all.
      2. Early payments are not allowed
        If you are able to collect extra money to pay for your loans, you would not be able to pay in advance. Some loan providers do not encourage it because you would just incur a penalty for early closure of loans. There are some loan providers that do allow pre-closure without any penalty but it is not often discussed.

      Personal Lines of Credit: How does it work?

      On the other hand, personal line of credit is a loan that works like a credit card. In this case, when the moneylender approves your application, they will give you the full amount at once then you only pay the interest of the amount you actually used. You have the option to get the entire amount you borrowed or get it in increments. Some loan providers send the funds through electronic transfer, cash or check.

      When you wish to pay for your loan, the payment is similar to how you pay for a credit card. After a month when you borrowed, you will need to pay a minimum amount to pay your dues.

      There are several ups and downs when using this personal loan type and here they are as follows:

      Pros

      1. Low-interest rates
        Like other personal loans, personal line of credit loans has lower interest rates. You don’t even have to pay it until you need the full amount you borrowed.
      2. Helps you control your budget
        Since it is similar to paying a credit card, you would be able to budget your payments for it every month due to its low amount.
      3. Readily available
        When you have this loan active, you can easily use the line as a source for quick funds and you can withdraw whenever you need it.

      Cons

      1. Annual fee
        Some personal lines of credit loans come with annual fees which is still charged unto clients even if they are not used.
      2. Overspending risks
        Since it is readily available, you may be at risk in overspending the funds even if you do not need it yet.
      3. Strict Requirements
        If you have a poor credit rating or if your finances are not stable, you will be unable to get an approval for this loan.

      Final Remarks

      Before you rush off to a moneylender or a credit union to file a personal loan application, it is important you find out first if you truly need one. Even if you are in desperate need of funds, there may be another way to fund your expenses or sudden need.

      If personal loans are what you need, remember to research what works well for you. It would not be prudent to just pick randomly on what type of loan you should get because not all loans have the same monthly repayment rate and interest rate.

      You may end up paying more than what you actually borrowed.

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        How To Fund Your Education In Singapore?

        Every person deserves to be educated, especially children. Education would help them reach their dreams and determine how well they can do in the world. No matter where they came from and what background they may have, they deserve the right to be educated.

        Unfortunately, while it is a right every person must have, pursuing one’s studies can be quite tricky if you do not have the funds to pay for it. Some schools do offer free education, but it may only be for elementary years. If you successfully graduate from high school, pursuing college or university would require a massive amount of funds, especially if you would go to top ranking universities.

        Singapore is one of Asia’s top hubs for high-level education, especially for those aspiring to work in the IT industry and business. However, it is also one of the most expensive places in Asia to get a higher education. Even if a person has the talent to finish their degree, they would not be able to proceed any further with their education if they do not have the financial means to finish it.

        Fortunately, getting funds to pay for education in Singapore is easy if you do a little bit of research. For parents, you can check out moneylender companies, banks, and credit unions and avail for a personal loan which you can use for your child’s education. These personal loans can then be paid while your child is studying. Moneylender companies may even have specialized personal loans which would match your income so you can pay them without problems.

        Alternatively, if you have a low annual income, approaching groups like Ministry of Social and Family Development can also assist in creating a plan that would let your children study without hampering your budget.

        Unfortunately, these financial aids can only do so much as tuition fees increase each year. No matter how much you budget, additional fees would always pop when you least expect them.

        So how can you fund your education?

        Student Loans

        Nowadays, student loans are the most common way students in Singapore pay their college bills. It can be requested either from the federal government or from a private company, namely banks.

        Of course, there are some certain things you need to consider before you look into student loans because it is not applicable to everyone.

        • Consider if your degree is still relevant and updated now that information is discovered regularly. If you are pursuing a master’s or doctorate, make sure the courses are updated before you seek a student loan for it.
        • You must also see your finances if you can still go for higher degrees. If you do work immediately after finishing your bachelor’s degree, you need to do some financial balancing to get that MBA you are dreaming off.
        • Education prices are different for foreigners living in the country because of additional requirements. Some schools do provide financial aid and scholarship for foreign students, but they vary depending on your degree and background.

        Private vs Government Student Loans

        However, there are certain requirements before you can apply for a student loan: whether it is private student loans or government student loans/assistance.

        For private student loans, you must:

        • Have a good credit rating
        • Must have a co-signer or guarantor who has a good credit rating. If you are Singaporean, your guarantor/co-signer must be Singaporean. If you are a foreign student, your guarantor could be of any nationality.

        Usually, private student loans from banks like DBS, CIMB and OCBC do not have interest rates attached to their loans. However, they do vary as to when you need to pay them. Both DBS’s study loan and OCBC’s FRANK loan can be paid after graduation. OCBC allows repayments to be done as late as 2 years after you graduate. Usually, the loan tenure for both these two banks can span up to 20 years depending on your agreement with the bank.

        On the other hand, CIMB’s loans require borrowers to pay the interest while you are studying for your undergraduate degree.

        The federal government also offer student financing if students pass their requirements. Requirements vary depending on the school you are applying for, your degree and the government’s financial program. Alternatively, you can use tax credits to reduce your school fees which can increase depending on your income.

        Scholarships

        Scholarships are also one good way to pay for your education. Some scholarships take into account your gender, religion, race and background before you are accepted. Your grades in your earlier years may also affect your chances of getting financing for your tertiary years. Once you get accepted, the scholarship may be able to at least pay a part or in full your entire college education.

        If you will consider scholarships for your higher education, make sure you do your research to learn their requirements because not all scholarships can be used for certain degrees.

        Employer Support

        When you already got your degree and now employed, you can ask your employer to fund your schooling. Of course, your course must be related to your current job. If you are working for the government, you can seek tuition assistance to pay for your education fees.

        Enrolling Part Time

        Instead of going full time, you might want to consider taking your course part-time while you work. This will allow you to accumulate experience as you earn your degree. However, the downside is that you might burn yourself out, juggling both priorities in life. And those who completed their course full time will be ahead of you in their set careers.

        Conclusion

        All of us wish to be successful in life and reach the top. However, if we do not have the right education and skill set to back us up, we will not be able to reach our dreams and aspirations.

        Fortunately, even if the price of learning is becoming unbearable, there are means to still get by it. Consider what you want in life and plan accordingly on how you will fund your education to attain what you want.

        Good luck!

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          Help: Broke And My Next Loan Installment Is Due

          Nowadays, it is common you get a random call from a telemarketer trying to offer you bank loans and other services even if you do not need it. Even if you say no, you would still get similar calls until you avail the service. You can also ignore the calls if you don’t want to deal with these telemarketers.

          While you can ignore these calls, you cannot do the same thing when you take out a personal loan from the bank or a moneylender. You would no doubt get a call saying you have a certain period to pay for your loan. The calls would be more persistent when you miss a monthly repayment and eventually, you would find the collectors knocking on your door.

          When this happens, people would definitely say ‘you should not have obtained a personal loan in the first place.’ However, if you really have no choice but to get the loan, what should you do to escape getting into this mess?

          While you can just ditch everything and run away from the collectors, you may find yourself in an even deeper mess if you get caught.

          In order to save yourself from such occurrence, here are some ways to help you pay off your loans even if you are broke.

          Get Short Term Gigs

          Nowadays, you can make some funds even with short-term jobs or gigs. May it be online or offline, there’s a job that can help you earn a quick buck for your bills and expenses if you know where to look. While the amount these gigs can generate is not that much, putting them all together can help you make up for your missed payment and appease the moneylender or the bank.

          These short-term gigs can also help you build up emergency funds when you managed to pay off your monthly payments.

          In Singapore, short-term gigs are aplenty and here are the most common ones that appear on the market:

          • Private tutors
            Education is an important part of every child’s life and parents would always want the best for their child. Job ads for private tutors can easily be found in newspapers and if you fit the bill, you can easily start working after 2 weeks.
          • Roadshow salesperson
            If you are looking for a short-term job that hires immediately, just type in “roadshow” on Gumtree, Monster and other job portal sites and pick the one that is suitable for you. Usually, roadshow jobs entail sales and retail tasks that do not require a high educational background.

          Be Honest and Talk to Them

          For people who take out loans from money lender, they tend to believe that if they cannot pay their loans, the best way to escape it is by running away. Unfortunately, running away from loan collectors can be a nasty business because if you get caught, you will be extradited and face jail time.

          Contrary to popular belief, loan providers are not that harsh and would happily help you in lessening your worries if you explained to them why you cannot pay them. To them, it would be costly if they would have to get lawyers to harass you and use their leverage to pressure you into paying them. If you properly explain your circumstances to them, loan providers would offer you options like reduced loan rates, payment extensions and a new payment scheme.

          If you get these alternates, you will be able to at least fend off the collectors for a while. Of course, make sure you do not waste this chance because even loan providers have limits to how much leeway they can provide you.

          Stop Spending Haphazardly and Save Up

          For this next option, it doesn’t mean you have to stop yourself from spending at all to make funds. You still need to spend some money for your living expenses.

          While you may say you deserve to unwind once in a while, you should lay it off for a while until you pay off your personal loans. The amount you save from luxury and another non-essential spending can assist in paying your monthly dues and you would be surprised with just how much you can save if you lay off from the splurges for a short period of time.

          Reducing expenses should also include just how much you spend on daily commodities like food, fuel and transportation. As much as possible, buy what’s enough to get you by and look for alternate options for your other expenses.

          Once you pay off your dues, you can splurge once in a while and also save up while you are at it. You may even find it easier to budget your expenses once you no longer have loans to cause you worries.

          Borrow from Family or Friends

          If the amount you save up from the first three steps isn’t enough and you really can’t pay off your loans, it is time to face the music and seek help from your family and friends. They may be willing to lend you some money in exchange for a favour you will need to do in the future. When you get the money, immediately pay off your repayment and plan the next repayment.

          If your family or friends do not lend you money, you can still check out other moneylenders or loan providers if your credit is still good. When you do this method, you undergo debt consolidation: paying a loan with another loan with a smaller interest rate.

          However, before you do debt consolidation, it is ideal to review the overall cost you will pay on your second loan. There is a possibility you may pay more on interest if you have gotten a high-interest loan to pay off your current loans.

          Conclusion

          When you are broke and desperate, do not immediately drop everything and head for the hills when you miss a repayment. There are many ways for you to be able to pay it off if you calm down and think carefully.

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            Let’s Use Personal Loans to Protect Your Cash

            When a person hears the term ‘personal loan’, they would often say it should only be used as a last recourse when one doesn’t have the funds to pay. As much as possible, it should be avoided by everyone, especially those who are just starting to work or build their credit ratings.

            As a result of this belief, many do not see the positive benefits of getting a personal loan even there is no clear need for it.

            Does money make the world go around?  

            There is a saying that says ‘money makes the world go around’. You need to have funds prepared for all eventualities, even if you do not have a use for it now. Even if you put your money into investments or insurances, it is still possible to be broke if you do not have accessible funds in the bank or on-hand.

            You also disable yourself from getting new opportunities even if you do have something prepared for the future.

            Fortunately, if you are pressed for cash right now, loans can assist you to create a regular cash flow.

            When Should You Ask for a Personal Loan?

            Many moneylender companies and financial experts would say a personal loan is there to protect whatever cash you have on hand.

            However, what is the right moment for you to ask a moneylender to lend you a loan? There are at least four possible situations you can be in before you should consider a loan.

            • If your savings are almost at the red or total wipe-out
            • If you are going to work for jobs that have small cash outlays
            • If you will catch your dreams and ambitions
            • If you are paying low-interest loans

            Saving your Savings Before It Goes Red

            Let’s face it.

            You need to use to use a lot of funds to make your life easier. If you live in a house that is poorly modified, you need to get it renovated and fixed. If you find yourself in need of hospital care, you need to pay your bills based on how long you stay. Once the bills come in, you may ask where you can get the funds to pay them.

            You can get the funds from your life savings and pay them in full. However, there is a danger to this because it may take you years before you can return your savings to what it was before you touched it. If another event requires you to spend again, you won’t be able to afford it.

            If you have dependents relying on you for their needs, it is ideal you do not touch your savings as much as possible. You can use that for other important expenses, like sudden medical assistance.

            In order to save your savings for these sudden occurrences, getting a personal loan can help you out. Even if you need to pay the loan monthly, you would still have ready money for your immediate expenses and your savings are intact for those emergency bills.

            Maintain Cash Flow During Low-Cash Opportunities

            Opportunities are everywhere if you know where to look. It could be an investment offer, an exchange program or a chance to get a doctorate or master’s degree.

            While the opportunity is tempting, many tend to pass on them because of the cash outlay or the fees you will need to shoulder during these opportunities. Although you do have to pay once for these opportunities, the returns would be immense once you finish them.

            Unfortunately, initial fees for investments, exchange programs and other similar opportunities can be daunting as they can set you back for a few years while completing the program. If you suddenly have to stop during the middle of your program, you also risk the investment you already paid for to finish it.

            If you get a personal loan during this time, you can focus on your program without having to worry paying the fees until you finish it.

            Fulfill Your Dreams without Going Broke

            Every person has a dream they would like to fulfill before they age to the point it is impossible to do. Some may dream to go around the world in style, others go on a religious pilgrimage, or do extreme sports. These dreams can be quite expensive, both in time and money.

            Extra funds can only go so far to fulfill these dreams and it is quite impractical to use your savings for these dreams. You would need a vast sum to fulfill your dreams.

            Personal loans can assist you to fund your dream without dipping into your savings or your finances. However, it is ideal that your repayments do not go beyond 30% of your monthly income. You still need to support your other expenses after all.

            Paying off low-interest loans

            Paying off your car loan? Home loan? Credit card bills? Usually, paying for these loans can be done monthly to pay them off.

            However, what if you have some funds on backup? Should you use all those funds to pay a chunk of your loans?

            While it is ok to pay off your loans faster, you are risking yourself on being broke and with no funds to use for other expenses. When you pay off the loans and suddenly found yourself in a pinch like sudden sickness, you can’t take back the money. Getting a personal loan can assist you to remain afloat and even pay for these small loans.

            Research and Decide

            As the saying goes, do not judge a book by its cover. While many people say personal loans should be avoided because it would just put you in debt, it has benefits that can help you in the long run if you do it right. Make your research and consider all the options available before you decide on getting a personal loan to help you protect your savings.

            If you go for the personal loan, make sure stick to your repayments and stay committed! With a little planning, you can be financially ready for anything that comes your way!

             

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              Important Guide to Better Loan Management

              When starting a business, it is always a problem as to where you can get the capital to support your business. This problem becomes more difficult if you are starting out on your own. Although you can borrow money from your family or friends, it is ideal to get a personal loan to help you get started.

              However, when you are in countries like Singapore where moneylender companies and other loan providers are strict when it comes to personal loan applications, you may need to locate other means to fund your business.

              Loan providers would ask where you will use the money and depending on your credit background, you may find yourself facing rejections every time you apply. If your application gets accepted, you will still need to worry about managing it and do your repayments.

              Managing one’s loans is easy if you know how to organize it properly. You can also do it on your own. If not, you can ask someone else to manage your payments for you. However, some people are not comfortable in showing others their current loan status, especially if you are at risk of paying them.

              When you are at risk of bankruptcy, getting professional help is a must to get you back on track. You can even check online to get some ideas on how to manage your personal loans.

              Here are some tips to get started on building your very own personal loan management plan:

              Use Automatic Loans Repayments

              If you want to maintain your current high credit record, you must be able to pay your loans on time or pay them at rate hours. Missing one payment on time can easily damage your credit record and may likely disable you from getting another loan.

              Fortunately, financial institutions – moneylender companies and credit unions included – now have automatic financial systems online that can help assess potential loan applications and even enable automatic payments. When you register your account, the system can easily deduct your loan from your bank balance based on how much it is and when you want the automatic repayments to start.

              Alternatively, you can also set up automatic loan repayments with your bank accounts. Some banks have included credited loan providers on their list of billers so you can pay your loans online or through their mobile apps.

              Seek Loan Managing Advice Online

              If you do not want to speak to loan advisers and counsellors for your loan problems, you can always check out their websites and seek their help there. Of course, each loan provider has different advisers and counsellors that specialize in different kinds of loans so you need to know what loan you have before you seek their advice.

              However, all of them will help you get out of your loan dilemma. You can even seek their advice if you want to learn more about your loans and how you can manage them more efficiently. Their services are often free, but you can avail for a more personalized service for a certain fee.

              Divide your money into various accounts

              If you want to be able to revive your accounts and still pay your loans, you can separate your income to various banks and separate your loan payments from it. Even if the amount you put in these accounts is small, you can build up your bank accounts easily if you do not spend them.

              Reduce your spending even when you have cash

              When you need money for important payments or needs, reducing your expenses should always be your number 1 action. While you may have an extra fund that you can use for luxuries and excess items you don’t need immediately, it is best you save it to pay your loans.

              When you pay off all your debts, that’s the time you can splurge a little and buy whatever you like.

              Ask someone to monitor your money and serve as your wallet while you pay your loans if you can’t stop yourself from spending.

              Negotiate with the bank or loan provider if you have issues

              If you find yourself having problems paying your loan repayments or had been late, don’t immediately run away from your loan provider. If you explain your circumstances with the bank or your loan provider, they may be open to help you adjust your loans to make it easier to pay. They may restructure your loans to have a lower monthly payment or longer payment turns.

              Allocate a percentage of your budget to loan payments

              As you work and earn for your budget for the month, don’t immediately use it to pay all your loans or other debts. Budget your salary and allocate a percentage of it for your loans. Doing this would help you remember that you got monthly loan payments due and also cut down on unnecessary expenses.

              Apply for Loan Consolidation

              Paying different personal loans from moneylenders or banks can be quite confusing to handle if they are located in different places and have different due dates. Some loan providers offer loan consolidation packages to combine all your loans into one. As a result, you only need to remember one due date and pay the same interest rates.

              Before you consider loan consolidation for your loans, not all loan consolidators can be trusted as some of them may attach extra fees without you knowing it. Make sure you ask around and do your research before approaching a loan consolidator or a bank to do a loan consolidation for you.

              Pay Your Outstanding Loans First

              Finally, you must consider which loans to pay first. If you have loans with higher interest rates, pay those first because it entails you are paying more monthly.

              If you can haggle with the loan provider to reduce the interest rates, do it. Loan consolidation can also be done to reduce loan interest rates since you will only be paying all your dues in one bill.

              Final Remarks

              Managing your loans is not really difficult if you take a step back and consider the available options that can assist you in paying your loans. Panicking immediately when you see yourself unable to pay your dues would not do you any good.

              Take a deep breath and do your research on how you can manage your loans online. The ones above are just some of the ways that can help you manage your loans, there are more out there that can fit your financial status.

              Do not lose hope! You can do this! Good luck!

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                Getting It Right In Personal Loan Application

                By Kally / May 18, 2018

                Singapore is one of Asia’s highly developed cities and as such, the cost of living and expenses can be quite high. Whether you are working or studying in the city, you would need some funds on hand to pay for your expenses and other necessities. However, there are days when you feel your on-hand funds is not enough to the point you feel like you would be unable to live the next day as comfortably as you could or should.

                When your salary or savings is not enough to sustain your expenses, there are many options to consider to help you fund your needs and pay your expenses. You can borrow money from your family or get a personal loan from a bank or a moneylender.

                However, if you are new to all this financial terminology, you may not be familiar with the inner workings of what a “personal loan” is and how it differs to other financial services. Is it like mortgages? Or something different? What are the risks? What are the advantages? Is there some criteria to follow before you can get a personal loan?

                What are Personal Loans?

                Personal loans are actually “unsecured” type of loans which do not require a collateral to acquire. If you are somehow unable to pay your personal loan, the bank cannot repossess your properties. They can repossess properties like your house or car if you are unable to pay a mortgage loan.

                While there is no need to submit a collateral for personal loans and worry about it being repossessed by the bank or moneylender, it does have higher interest rates in comparison to mortgages. You would also find your credit score damaged if you failed to pay your personal loan or default it.

                What else are the pros and cons of personal loans?

                Advantages of Personal Loans

                Here are some of the advantages of personal loans:

                • Availability
                  Personal loans can easily be received after one week of application. Sometimes, it is handed on the same day.
                • Fixed Interest rate
                  Unlike credit cards that come with variable interest rates, personal loans are fixed and would only rise up if your balance increases.
                • No collaterals
                  As noted above, you do not need to worry about the bank or moneylender getting any property from you if you fail to pay your loans.

                Cons of Personal Loans

                Here are some of the disadvantages of personal loans:

                • High Interest
                  Although personal loans have fixed interest rates, they actually come with high-interest rates as your balance remains very high. As a result, you pay more for what you actually borrowed.
                • Affects Credit Rating
                  If you have a good credit rating, you may be able to still get some loans with lower rates. However, this would mean you would only be able to get collateral loans for your next money needs.

                How does a Personal Loan Work?

                When your personal loan application is accepted, you will be receiving the amount you requested and the time period as to when you need to repay it back. The interest rate and payment period of these loans may vary depending on your arrangement with the loan provider, although it may span for a few years.

                It is also common that repayments are amortized, meaning it comes with an interest charge and the principal amount you need to pay. Fortunately, the payments would not balloon over to a higher amount by the end of the loan term, which makes it easier for you to pay it monthly.

                Personal Loan Requirements

                Singaporeans, from ages 21 to 65, are qualified to request for a personal loan if you manage to submit the following requirements:

                • Proof of Identity: Singapore Identification Card
                • Proof of Address: Any document showing your name and address (ex. Credit card bills, phone bills)
                • Proof of Income: Must have an annual income of $30,000 or higher, Central Provident Fund annual statement, the latest income tax notice of assessment or latest computerized salary.

                Foreigners based in Singapore, from ages 21 to 65, are also allowed to request a personal loan if they also submit the following requirements:

                • Proof of Identity: Employment Pass and Passport
                • Proof of Address: Utility bills showing your name and address
                • Proof of Income: Annual income must be from $40,000 to $60,000, latest yearly Central Provident Fund statement, latest computerized salary or latest income tax notice of assessment

                For other types of personal loans, additional requirements may be requested depending on the loan provider. It is crucial that you ask first before you file your loan application.

                Available Personal Loans in Singapore

                If you in Singapore and in need of some funds, there are three types of personal loans you can avail depending on your preference and need.

                • Credit line
                  With this type of personal loan, the lender determines how much you can borrow from your credit line whenever you need it. When you pay, you only pay the interest and the borrowed duration. After you pay everything, you no longer have to pay anything until you borrow money again.
                • Personal Installment Loans
                  This type of personal loan is the standard type of loans where the money is given to you upfront. You would need to pay it back monthly for a certain value.
                • Balance transfer
                  If you do not want to pay numerous companies, you can simply consolidate them into one big bill by seeking a balance transfer loan. A grace period may be included in the arrangement depending on the lender in question when you request this loan type.

                Should you take out a personal loan?

                Taking out a personal loan should not be made haphazardly because it may not be appropriate for your financial need or capacity. You must be able to pay the money back regularly without fail. If you are unable to commit to paying it regularly, you should consider other options because defaulting loan payments come will affect your credit rating for future loans.

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                  Can Older Singaporeans Can Get A Loan Approved?

                  Like other countries worldwide, older Singaporeans at the age of 62 and above may find it difficult to get a personal loan because they no longer have regular paying jobs. Banks require assurance that the loan would be paid and if one does not have a job, they are reluctant to approve loan requests.

                  Fortunately, there are still ways for older Singaporeans to get a personal loan from financial institutions.

                  Here are five ways that can get you started on your loan application:

                  Offer a collateral for your loan

                  Banks require a guarantee when it comes to the client’s capacity to pay the loans regularly. If you are close to retirement age or in retirement age, using a collateral can boost your chances of attaining a personal loan.

                  A collateral can be a property the bank accepts to be of higher value than the loan amount you are requesting. This collateral can be stock investments, house titles and gold. Some adults tend to save up their gold because of their high value and it can be used as loan collateral when you are short of funds.

                  If you are going to use your fully paid home as a collateral, the process is called cash-out financing or reverse mortgage. Under this process, the Monetary Authority of Singapore’s directive states that banks can lend you to 50% of the current value of your property even if you do not meet certain income requirements such as the Total Debt Servicing Ratio.

                  When you have a collateral given to the bank, you are charged with a lower interest rate once you get your loan approved. Currently, cash-out financing interest rate in Singapore is around 1.6% per annum.

                  If you are unable to pay your collateral, the bank would take your collateral as payment. At the same time, if you manage to pay off your loan, you can get your collateral back.

                  Collateral loans are not available in all banks so double check with the bank you wish to loan from if they can process your collateral loans.

                  Ask a guarantor to help you

                  A guarantor is simply a person that would agree to pay for your loan if you are unable to do so. In Singapore, a guarantor must be 21 years old and has an income level that would enable them to pay your loan. If the personal loan amount is high, then the guarantor’s income level must be higher than that.

                  Usually, guarantors can be your family and friends. However, there are cases where guarantors would decline paying on your behalf if you failed to pay the loan. Before you ask someone to stand as your guarantor, you should draft a contract with them to set the guidelines on how the loan will be handled if the guarantor steps in.

                  Getting a guarantor for personal loans is perfect for those who have no or poor credit history. You can check out your credit history and your guarantor by requesting it with the Credit Bureau Singapore.

                  Get a short-term loan

                  The quicker you pay your loans, the better and if you are applying for a personal loan, accepting a shorter loan term can get your request approved.

                  Home loans are usually the loans that have short-term loan tenures. Applying for home loans are compulsory nowadays if you wish to purchase real estate even if you have the funds to pay it in full. As a result, repayments are not very difficult to manage if one plans on how to pay for it and it can be paid quickly.

                  When you shorten the loan tenure, you would need to pay higher monthly repayments. Fortunately, you can minimize the impact of higher monthly repayments by refinancing, paying higher EMIs (equated monthly instalment), calculating mortgage fees, and regulating your funds.

                  Before you take this option, make sure you would be able to handle the higher monthly dues to prevent mishaps during payments.

                  Get a Co-Borrower

                  Usually, borrowing money from the bank can be quite tedious since you have to work with a time period on how long the payment should be done. You can also borrow money up to a certain age, which can be difficult if you have already retired. In order to bypass this problem, you can pick a younger co-borrower to stand with you when borrowing funds.

                  If you have a co-borrower, the bank would average out your ages and see if you can pay the money you borrowed. Usually, younger borrowers are preferred by banks since they still have a regular source of income.

                  When you get approved for your personal loan make sure you plan out with your co-borrower on how it can be paid as soon as possible.

                  Check out offers from credit unions and moneylender companies

                  If you do not wish to get a personal loan from a bank, non-banking institutions like credit unions and moneylender companies are available. Money lender companies and credit unions tend to be flexible when it comes to their loan payment plans and would not focus much on the person’s age and credit history. If you have a good credit history, you can approach them to get a loan.

                  However, not all credit unions and moneylender companies are accredited. Before you approach these non-financial institutions, do your research. In Singapore, the list of accredited credit unions is listed on the website of Singapore National Cooperative Foundation. Licensed moneylender firms can be viewed at the website of the Singaporean Ministry of Law.

                  Final Thoughts

                  When you reach retirement age, it is time for you to take things slow and relax. However, since you need to spend to remain comfortable, you will end up spending your savings if you are not careful. Taking a personal loan can lessen the burden somewhat, but your age might be an issue.

                  With the help of these tips and some careful planning, you can still get a personal loan even if you already retired and pay it off as easily.

                  Good luck!

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                    How Licensed Money Lenders Aid You In Business

                    As a borrower, you may have to get in touch with your business moneylender. Private business advances and gear loan advances are rather simple to get. This is business lending rules are often not similar to private lending.

                    When you look for a business loan to manage your business. You will need to consider working with a licensed lender. One that is ready to work closely with your company. As well as help raise the funds you require. The lender should look at your business financial needs.

                    This way they can offer you a stable set up with many different funding choices.

                    Some Types Of Business Funding Accessible

                    Credit extensions

                    This can be used for getting new equipment. It can also finance your working capital and big and small purchases. You need to borrow loans that have flexible terms and fixed interests.

                    Letters of Credit

                    They promote exchange and decreases the importer’s country risk. They also reduce the issuing lender risk. Often time the rotating credit extension bode well than one advance.

                    More so when deciding on whether to purchase important things. Or even to cover income or pay for improvements. This gives you access to an extension of the rotating credit. That comes with flexible repayment terms and options.

                    Some Critical Features Of The Loans Offered By Licensed Moneylenders:

                    1. In most cases, accredited lenders are experts in personal financing. This also includes contract organizations, government lenders, etc. The conditions and terms of the loan can vary for each lender. You need to audit and look at different crucial factors. These include things like the moneylender’s financing charge. Also, the prepayment penalties charged. Also, consider the APR, make arrangements that way you can choose the right lender. When you are not sure about finding a reliable accredited moneylender. Doing a web search is among the routes to locate them.
                    2. You will benefit from these loans regardless of your business standing. That is your profits and the rating. This loan may be offered mostly based on the appraisal of the pledged property.
                    3. The loan is an instant advance. You can access it in times of financial emergencies. It may be used when business owners are liquidating and abandonment.

                    Types Of Business Financing

                    Equipment Financing

                    It can involve transport, assembling, large equipment, yacht. This also includes corporate expansion funding.

                    Asset Based Lending

                    This is a non-customary option for resource growing companies. It helps them grow their acquiring limit.

                    Government Contract Financing

                    Offering a large variety of budgetary solutions for companies. More so companies that perform specialized assembling. It can also be for administrations of any construction.

                    As you search for business loans. It is always advisable to work with one moneylender. This is rather than having several of them at the same time. In so doing you will save large amounts of charges in the end. The key thing when improving your business status. Therefore consider utilizing the loan options in the market.

                    Accredited moneylenders offer instant business loan for capital. This will, however, depend on the asset presented as security. Loans offered by legal lenders might be costly and could higher interests. This is when you compare it to different kinds of loans. More so those done using your salary records.

                    Offering borrowers large loan amounts with no security. This can be a huge risk for the moneylenders. Unlike the banks and different traditional loaning institutions. The legal moneylenders do not consider a borrower’s income. They also do not look at their record, while offering loans. The moneylenders provide loans after evaluating assets used as security. Thus a borrower’s wage and resources do not get considered here.

                    Factors To Consider As You Decide On Licensed Moneylender Loans

                    1. As you decide on licensed lender loans. It is important to have the repayment plan. This is because first, the loans use your property as security. Furthermore, they could come with rather high personal loan charges. You need to take specific prudent steps in settling these loans. For instance, you use the personal loan to settle earlier obligations. This could be loans that attract high funding costs. Settling your past debts will adequately improve your credit rating. This makes it an advantageous option for you when you require it.
                    2. At this point, you need to consider the loan type. This depends on your intention of getting the loan amount. In so doing you will be able to decide on a moneylender. This could depend on your financial needs.

                    Different licensed money lenders will offer varying loan conditions and terms. For this reason, it is important that you carry out thorough research. This will give you a feel for the various loan terms currently offered by different lenders. Then from that, you can choose the lender that is best for your business needs.

                    In those situations when you realize that you do not have enough information. More so regarding the lending industry. You may even consider visiting a licensed lender in Singapore. You can also seek the advice from a financial counsellor. Large companies and privately-owned companies in most instances regularly use this support. In particular in making land bargains.

                    Also known as “Private Cash Loans.” These payments can be a significant source of funding. Especially for individuals who want to buy land. Yet they require funds on temporary terms. Another thing to think about is the ease of accessing the loan.

                    Oftentimes, when you find a good speculation property. You will need to act fast. Your ability to get funding fast will have a major effect on the payment arrangement. Traditional personal loans might take around 30 days even more.

                    Then at times, it is rather long. Accredited moneylender loans can help you purchase land. Particularly when you do not have the funds. It can also be used by individuals with bad FICO scores. This will make it possible for you to buy property and even benefit from it.

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                      Money Problems You Can Solve With A Personal Loan

                      Normally, unexpected costs should be covered using an emergency fund. However, even a large amount of savings will not protect you. Especially from all financial pitfalls that life will throw your way. Under the right circumstances, using the personal loan will prove helpful. , is because it will offer you the chance to handle the financial situation.

                      Having some extra funds right now will go along way. You will be able to restructure your debts. You can also cover any urgent expenses. Or even make investments that have good returns for many years to come. The good thing about personal loans is their schedule. You already know when it will be repaid in full. You also know how much it will cost you.

                      Personal loans will prove to be very handy at all times. That is provided you are aware of the times to make use of one. As well as where you can source the loan from. Working as a trusted and reliable moneylender is the best source. When it comes to the purpose of your personal loan.

                      Below are some instances when a personal loan is of great help.

                      Meeting Unexpected Medical Bills

                      Even when you have medical policies that you have taken. At times the treatment costs might go beyond the amount covered. For instance, some unexpected and sudden emergencies might require huge amounts. Realize that insurance policies may not cover many cost heads.

                      When you have problems handling some of these medical expenses. You could consider making use of a personal loan. This is before you choose to pay with the credit cards. The personal loans are much easier for you to manage. Also, they will not push you further into debts like the credit cards do.

                      Growing Your Side Hustle

                      Often times small businesses will require additional capital. The extra capital is aimed at maintaining the necessary cash flow. In addition, it is used for the purposes of expanding the business.

                      Legal moneylenders do provide loans to small businesses. These loans often come at excellent rates of interest, for purposes of expansion. Thus, It is wise to talk about your requirements in detail with your lender. Then ensure that you choose a loan that will suit your need. The loan should offer you a repayment schedule that is comfortable for you.

                      Additionally, you also may look for a loan for a project to renovate your home. You can also use it to purchase some high-end electronic devices etc. Opting to borrow money should at all times, be a judicious decision. Thus you need to give the option careful consideration. Always remember that borrowing should not be frivolous.

                      Invest in Yourself

                      Some people in Singapore will use the personal loans to spend on themselves. For example, you could use a personal loan for purposes of paying for training. For many workers in Singapore, training, a certification, or another kind of education is crucial. This may be an opportunity for them to greatly enhance their earning power. However, the first costs might be holding them back.

                      Using a personal loan could be an affordable method to finance this investment. At the same time, it will give a boost to borrower’s career. If you are seriously considering such use for a personal loan. Ensure that you do your research. This will make sure that you will have good returns on your investments.

                      Even then realize that there is some risk involved. But at times you will have to take the chance. Even then, such an investment in yourself can see you landing a new job. Or it could lead to a salary increment. 

                      Improve Bad Credit

                      Personal loans may be a good strategy to improve your credit reports. This can eventually help grow your credit scores. Credit scoring will often consider the mix of account of your credit accounts. When you just have revolving accounts such as credit cards listed in your report. Therefore, opening the instalment account such as personal loan might boost your score.

                      When paying off credit card debt use of personal loans is even better. Getting credit card outstanding balances down can lower the utilization ratio down. This measures the segment of credit available that you have borrowed.

                      When you take out personal loans to settle balances and not close the credit cards. You will lower this ratio and may see the credit score greatly improve.

                      Settling High-Interest Credit Card Debts

                      Although credit cards will offer you instant cash. However, their interests for repayment are the highest. At times, the interest may get to 24 percent high. When you have lots of accumulated credit card debts.

                      Taking out a personal loan to help close it will be a grant idea. This is because the interests charged by the moneylender will be a lot lesser. This is when you compare the rates on that credit card companies will charge on you.

                      Knowing When to Acquire a Personal Loan

                      Taking out a personal loan might be the right move. However, only smart as when you are securing one. It is important that you always ensure that you are getting a loan offered by a reputable lender. Be on the lookout for indications of a scam. These can include things like being promised a loan. That is regardless of your credit score. Or when a lender asks you to make upfront fees.

                      Additionally, make sure that you are taking into account all other options. Although in those cases mentioned above personal loans are worth considering. Debts — that includes a personal loan — is not a solution to all your money problem. It is important for you to realize this. Every time you purchase items on credit, you end up paying more for it. Though for most people they prefer to get a discount instead of paying a premium.

                      In Conclusion

                      Although, emergency costs should be settled using an emergency fund. However, under the right circumstances, a personal loan is very helpful. This is because it offers the chance for you to sort out your financial situation. And above all always work with a licensed moneylender.

                       

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