All posts in "Moneylenders"

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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        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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          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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                Why It Is Crucial To Have Emergency Funds

                Many people in Singapore fail to plan for their future. Having financial security is crucial for everyone. Having emergency funds can help you have peace of mind. This is because you can look forward to the future with no worries so you do not feel unprepared for any unforeseen expenses.

                Emergency funds are important to your family’s financial security. Through finding out more about this fund will help people better prepare. They will also start saving for those who have not done so already.

                The What And Why For The Fund

                This type of fund is basically money that has been put aside. The aim is to later cover life’s unforeseen events. The emergency fund will let you live for several months in case of a job loss. Or when unexpected event crops up that may cost you huge amounts to cover.

                Consider it to be like an insurance policy. Instead of paying monthly premiums to insurance companies. You are, however, are putting aside some money for yourself that can be used at a later date. This money can then you and your family. This money can come in handy when unforeseen events occur.

                Even then there are options available for you. To help you out an alternative would be taking out a personal loan. You could also use the payday loan from legal moneylenders in Singapore. Although this direction might not be the most ideal. But it truly will go along way. The loan amount will help you deal with your current issue. Thus it will get solved a lot faster as compared to the other options like the banks.

                Deciding on an Amount

                Financial experts and most banks advise that you need to save some cash. This should be about 3 months the value of your salary towards your emergency fund. In so doing, in case you lose your job, you will have sufficient cash to cope. This should sustain you for several months before you could find another job.

                Even then, based on your income level and preferences, the fund amount will vary. First, you will need to calculate your monthly expenses to know the exact figure. Work out the amount you spend every month on rent or mortgage. Also calculate what you spend on groceries, vehicle expenses, and utility bills.

                When you have some insurance policies which will cover you. Especially when you are facing unexpected emergencies. Then you can manage with a bare minimum. Even when you have family that can support you during the financial downtime.

                It is advisable that everyone makes a point to set aside some money. This should be intended for the emergency funds. This will help you later for the unforeseen expenses.

                How To Build Your Emergency Fund

                There are no shortcuts when it comes to saving up for your emergency fund. This boils down to several factors. These are individual discipline, your financial status, and your determination too. An emergency fund could take a rather long time to grow. That is when your monthly wages are acceptable.

                Yet your monthly expenses are rather high. Bearing that in mind, realize that everyone has got to start from somewhere. Therefore, it is important to start growing the fund. This is because it is difficult to predict any emergency events.

                Given that for example, that you earn a set salary of S$4,000 each month. However, your liabilities use up a total of S$3,000. This will leave you with an amount of about S$1000 every month. This is what you is to go towards the emergency fund.

                Based on this for you to have 6 months’ the sum of your expenses to grow the emergency fund. Then it means that you need a minimum of S$18,000. Thus you will need 18 months of savings to grow it by putting in S$1000 each month.

                What Your Emergency Fund Should Cover

                Job-Related Move

                When a job opportunity comes your way. You will not want to have to turn it down. Simply because you will not afford the move from one state or city to another.

                Medical Bills

                Most of the people in Singapore are covered by MediShield. Thus they are able to utilize Medisave. However, you may have to take a personal loan offered by moneylenders. This will help you pay off the expensive medical bills. This mostly depends on how long you stay, the conditions, and class of the ward. With all that is is easy to drain off all your savings.

                Home Renovations

                There are some home renovations cannot wait. Broken water heaters, leaky roofs, old cooling and heating systems that do not work. Some of the home repairs may not be covered by insurance. Thus that leaves the responsibility for them to you.

                Also, most Singaporeans carry high deductibles for their policies. Thus even though you hold insurance, it is a good idea that you come up with money for the essential repairs.

                Job Loss

                Most experts often recommend this as the first reason to have an emergency fund. Although you may lose your source of income, the bills still need to get paid. That includes mortgage/rent, food, utilities, car payments, and the credit cards minimum due amounts.

                Bottom Line

                An individual and family need to be prepared for the for the unexpected. Home repairs, Medical emergencies, retirement and auto repairs are some reasons for having some emergency fund. Most people will want to have sufficient savings at retirement, to live comfortably.

                Having Social Security does not guarantee that you will have enough funds to enjoy retirement. But, when you start making preparation now. Then you get to look forward to your retirement.

                An emergency fund is important for your health. Having to live in fear that you are not secure for the future. it will only cause you unnecessary stress. Getting stress may lead to numerous health issues. Additionally, health issues might lead to loss of income.

                Hence, an emergency fund will help you eliminate this stress. This will allow you to lead a more comfortable and peaceful life.

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                  This Is What You Should Do During A Financial Emergency

                  At times emergencies are beyond your control. It could be car accidents, health crisis or your home gets damaged in a fire. However, at times it is easy to prevent when you choose to be proactive. When you are faced with an emergency. There are some things you could do to help prevent it from wrecking your finances.

                  A financial emergency can easily make you lose your perspective. This will cause making poor decisions. That will have long-term effects on your finances. However, when you follow the tips listed below. You will minimize the damage to your finances. This will also help you get through the emergency fast and pain-free.

                  Do Not Panic

                  In a financial emergency, the first to do is- not to panic. This may be hard to do. Even the try and face the difficulty with no much fear. Keep calm and rationally think about ways to deal with the situation.

                  Do realize that any decision you will make can affect your future. When you are not certain on what to do. Seek counsel from someone more experienced. This will help make the best possible decisions.

                  Find Out The Main Cause Of The Problem

                  Going through a financial emergency can be stressful. The stress can affect your ability to assess the condition logically. Thus the first thing to do is calm down. From there try to look for the cause of your problem. After you find out the origin of the financial emergency. It will be easy for you to get a lasting solution to your problem.

                  Cut your Spending

                  Certainly, if the emergency causes a big dent in your finances. It means you may have to cut on your spending. Do this as much as you possibly can until you recover. At this point, having a good working budget will come in handy.

                  Utilize the budget to help prioritize your spending. This will also help you stop spending on what you do not need. This is will also help in the recovery process.

                  Look For Ways To Make Extra Cash

                  This is amongst the best strategy you can use to help repay emergency bills. It will also help you as you try to get rid of debt. Earning some extra cash money speeds up the time you would take to settle any debt. It also lets you cope for a much shorter period with emergency expenses. This is when you compare when you have to manage without the extra income.

                  Get a Loan

                  When you are sure that the problem is short-lived. You may consider making use of a loan. This would be for short term. It is easy to access a personal loan in Singapore from legal moneylenders. The type of loan that you need to take will depend on the situation. It will also be influenced by the amount of money you require.

                  Of importance, your capability to repay will play a role. For example, for a salaried professional, taking out a payday loan will be convenient. When you prefer the unsecured loan that has a repayment period of a year. Then you may consider making use of a personal loan.

                  Prioritize Your Expenses

                  When facing a cash crunch, make every penny go a long way. The point here is that you try and save money as much as possible. To achieve this, you will have to prioritize your expenses. You could consider differentiating between ‘wants’ and ‘needs’.

                  Omit any unnecessary and not-so-important expenditure. Be sure to only spend when it is very necessary. For example, to pay utility bills is very necessary. However, you could delay your yearly trip for a while. In following these easy steps you will be able to deal with any financial emergencies.

                  Contact Your Lenders

                  When you realize that you might have a problem paying your bills. This is owing to the financial emergency. It is advisable that you immediately contact your moneylender and service providers.

                  Most Singaporeans have a trend of putting this off. This then results in lots of late fees. Eventually, you start getting nasty calls from moneylenders. If you get proactive, often times you come up with suitable payment options. These solutions can help you prevent a lot of stress, for instance.

                  A few credit card companies are ready to put off payments for a while. They can also help you draw up alternative payment solutions. There are programs established by utility companies. These are intended for borrowers who have trouble managing their bills.

                  Contact them to get more information about the options available. Keep in mind not to put these off when you need assistance. The sooner you tell your moneylenders the better.

                  How To Prevent a Financial Emergency

                  You might face a financial crisis at any time in life. This will also cost you lots of money. However, most Singaporeans are not prepared financially. Thus may not know where to start when it comes. Therefore, to help you minimize and avoid a financial crisis before it occurs. To get you prepared for ways to prevent a financial emergency. Below are some tips:

                  • Have an Emergency Fund – Having some money saved up for an emergency. It will mean that there are less panic and stress. You are then able to pay for it and get on with your life.
                  • Ensure that you are financially prepared for an emergency before it occurs.
                  • Be debt-free – By having lots of debt, emergency expenses might send your finances out of control. However, when you are debt free. You will not experience the stress of dealing with debt collectors. In addition to handling a financial
                  • Have Insurance – It is worth noting that insurance could be expensive. However, it will be is less expensive for you than when you do not have At the very least, make certain that you hold health insurance. But, life insurance, home insurance, car insurance, and maybe disability are needed. This will help you head off some life-changing emergency expense.

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                    3 Types Of Lenders In Singapore: What Works For You

                    Singaporeans are spoilt for choice.

                    This is when it comes to accessing loans in the market. The options are endless. On the other side, not all these choices are ideal. By picking the wrong moneylender, and you might end up deeper in debt. More than you would have suspected.

                    Below are differences between these lenders:

                    You can legally borrow from 3 types of lenders in Singapore. Their practices will vary and these lenders cater for different borrowers:

                    Pawn Shops

                    Pawn shops usually let you “pledge” a valuable item in exchange for loans.

                    Once you present valuables to pawn shops (e.g. a gold watch). Pawn shops will lend you some money. The amount ranges from 60 to 80% of the value of your item. Therefore, when you are to pledge a watch worth $ 9,000. You might get a loan amount of $72,000.

                    Pledge is the valuable item you present to the pawn shop dealer. Once you receive the loan, you get 6 months you to pay back the whole loan and interest. Failure to that, your valuable item will be auctioned. Typically interest rates on this loan are 1 percent for the initial month. Subsequent months will attract 1.5% interest. The rates are lower compared to the normal credit card, that charges 2% a month.

                    Realize that these repayments amounts are not fixed. For instance, you may decide to repay $50 for one month. You could also pay $700 for the following month. Thereafter, $400 for the month after, etc. Whenever you make a remittance, the auctioning of the pledge will be postponed by six months.

                    Note: Do not use pawn shops as a “quick sell” place for watches, jewellery, and other valuables. Usually, you will get less cash from pawn shops. That is more than you might get when you sell it to a watch dealer or goldsmith, etc.

                    Pros

                    What you need to acquire a loan is a pledge and Identification (your IC). Income, outstanding loans, and credit history are not required.

                    Failure to repay your loan, you only lose your pledge. That is not the same for personal loans and credit card line. This debt only keeps compounding when you do not repay.

                    Cons

                    A rate of 1.5% each month, maybe lower compared to credit cards. It still very high when you compare it to personal loans offered by banks.

                    These lenders offer a single loan. Thus no revolving credit products.

                    The loan you may borrow depends on the value of the pledge.

                    You should own an item worth being pawned for you to access a loan.

                    Banks

                    Banks the popular sources of credit. They widely can be divided into private banks and retail banks.

                    Retail banks provide “mass market” type of loans. These come in forms of business loans, credit cards, car loans, personal etc. Their range of products is too big. These lenders are able to fulfill most borrowers needs.

                    The second type of bank, the private banks, provide primarily to high net-worth borrowers. These lenders provide unique loan choice when you have valuable security. For instance, given that you own an extensive fine wines collection.(the private bank can conduct valuation exercise for it). They then can offer you the loan using your wine collection. This will act as the collateral.

                    Pros Of Borrowing From the Banks

                    Banking institutions think highly of their reputation. Thus they are subject to strict industry regulations. They also keenly adhere to government policing.

                    Most banks may offer you revolving credit products. These they do use loan products like the credit cards. By using revolving credit, will require that you make a new loan application. That is each time you wish to take out a loan.

                    They can offer bigger loan amounts compared to other lenders listed.

                    Banking institutions might charge lower rates. That is when you compare them to other credit sources listed here. This is especially for specific loans like the education loans and home loans.

                    Making repayments to banks is normally more convenient. The repayment methods are many. You could do so from the bank’s ATM, online, by mail and through its branches. The other lending options listed here will often require that you make remittances in person.

                    Cons

                    Banks follow strict standards for their borrowers. These include things like Debt Servicing Ratios- DSRs. Additionally, they use minimum salary requirements. This means not many Singaporeans will qualify for bank loans.

                    When you fail to pay off banks promptly. It might damage your records with all the other banks. This could even include other financial institutions. When you failed to repay bank loans before. You will not have the chance to borrow from banks at all.

                    The private banks are generally not accessible to borrowers without several extra million dollars.

                    Licensed Moneylender

                    This type of lender often times deals in small loans. That is loan amounts of up to $10,000. Though some licensed lender might be ready to give larger loans. This is however for few clients. Loans offered are either secured or unsecured.

                    Accredited moneylenders transact individually with their customers. Although these lenders also assess your income and credit history. They may offer different interest rates and the loan size based on the own judgment. It is for this reason, it is hard to make general statements regarding legal moneylenders.

                    Owing to the high risk involved in the money lending business. Licensed moneylenders in Singapore will charge high interests. These rates depend on a borrowers income:

                    Most legal moneylenders need fixed monthly remittances. However, these terms can be negotiated.

                    Pros

                    These are providers of last resort. These lenders can give you loans even after banks have rejected your loan request.

                    Cons

                    They have in the past ugly incidents that engaged services of debt collection bureaus. There has been alleged harassment of borrowers. Banks are big enough to take in bad debt. Yet they generally care much about their reputation. Thus they will never result in using such strategies. Not the case for moneylenders. Few lender charge interests that are almost exorbitant. Therefore it is important that you do your own research in getting the best service from the best moneylenders in Singapore.

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