All posts in "Finance"

10 Borrowing Tips For A Short Term Cash Loan

Short term cash loan in Singapore, are often taken out by individuals who urgently need fast cash for an emergency purpose. The short-term loans are an unsecured type of loans and in order for you to qualify for one. You are required to have regular wages from some sources like from a business or a job. You are also required to be a Singaporean or a resident of Singapore and can work here as well. In addition, the law instructs that you need to be 21 years and above before you are able to take out a short-term loan

Unexpected events in life can at times pressure many people into taking up short term types of personal loan. One thing tough banking institutions don’t offer their loans to every person. It may happen that a borrower needs a short term loan straight away but they may not hold a good credit rating.

However, licensed moneylenders are able to extend short term loan types to help their borrowers manage their financial deficit. During times of extreme anxiety, some borrowers may overlook the important conditions of the short term loan.

One important thing that borrowers need to keep in mind is that that they should avoid borrowing a loan for servicing games of chance that can include games like betting, gambling, investment trading and also undertakings that aren’t a guaranteed thing. The amount of money you borrow needs to be utilized for the particular need it was borrowed for.

When you have borrowed too much cash instead of using it on imprudent ventures, make sure that you repay it in huge sums as part of the loan repayment agreement.

How To Qualify For A Short Term Loan

Given that short term loans are unsecured, the money lender will require evaluating first your capability to pay back the loan. The assessment done also gives the potential lender a good plan of the sort of repayment scheme that will best suit you to ensure that you aren’t overburdened. Your money lender will examine the below-mentioned things for you to qualify this type of a loan:

Credit Rating – when your credit rating is poor, your lender is able to still help you access the credit you require on condition that your financial situation at present is able of supporting your loan.

Employment Proof – You also need to present your employment agreement. This contract should contain things like your monthly salary clearly indicated. Also, this serves as an indicator of your ability to service the loan taken with ease.

Your Recent 3 Months Payslips – this is only for foreigners. These documents enable the money lender to evaluate your income, debt servicing ration, and other expenses. Using this information, a licensed moneylender will know the amount of money they can extend to you in loan money as well as work out a repayment schedule that can work best for you.

This loan type is specifically ideal for individuals in business and those that are paid on commission. By using such information your money lender is able to work out the amount of money you earn each month on average. This way they are able to calculate the loan amount you are able to get as well as the repayment scheme that is best for you.

Bankruptcy – when you have in the past filed for bankruptcy, you will still qualify to get a short term loan with a licensed money lender by presenting your discharge letter. Unlike the traditional banking institutions which require a previously bankrupt individual to wait for as many as 5-7 years before they can be able to access credit, there some licensed money lenders who are able to assist you now.

10 Useful Tips To Consider Before Taking Out A Short Term Loan

When you are not sure about how the process works and whether you simply would like to access a loan fast and without hassle, it is advisable to read through these 10 tips listed below to guide you.

  • A licensed moneylender needs to explain the conditions and terms of a short term personal loan to their borrowers using a language that is easy to understand and in a clear manner.
  • Borrowers need to ensure that they get a copy of their Note of Contract during the time the funds are being issued to them.
  • It is important that as a borrower you ensure that the Note of agreement is correctly showing the principal loan amount of your short term credit and rates of interest charged as well as dates of the contract and the loan disbursement as well.
  • Borrowers should make sure that the licensed moneylender had issued the accurate loan amount with no portion of it being withheld for whichever reason at all.
  • It is important that borrowers ensure that they pay their monthly installments promptly to avoid incurring additional late payment charges.
  • Borrowers need to get a dated and also signed receipt each time they pay back the short term loan and also any costs charged by their moneylender
  • The receipt needs to bear the certified moneylender’s name, telephone number, address, the cash amount repaid as well as the date when the payment were made.
  • The borrower needs to ensure that they get their accounts statement for all their loan(s). The statements need to be issued at least once in every 6 months. Borrowers should make a point to request for one when they do not receive any from their money lender.
  • Borrowers also should maintain proper records of all their short term personal loan repayments
  • And above all borrowers should not rely on any verbal commitments made by lenders. They should ensure that they always obtain a written proof from their licensed moneylender.

Conclusion

Short term loans are often taken out by individuals who urgently need fast cash for an emergency purpose. Unexpected events in life can at times pressure many people into taking up short term types of personal loan. One important thing that borrowers need to keep in mind is that that they should avoid borrowing a loan for servicing games of chance. And above all be sure to work with a licensed lender.

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    How To Get Best Car Loans Even With Bad Credit Score

    It can be frustrating when you love a car only to realize that you aren’t able to take it home with you since you are not eligible for financing because of your bad credit. One thing to note is that bad credit does not have a specific range. It’s an issue of opinion that if different from every moneylender. When one moneylender deems your credit to be poor another will place you in the subprime range.

    Having bad credit record doesn’t imply that you will not be able to ever acquire a car. In spite of this, you are able to even get a new car even with your poor credit status, since many reliable licensed money lender in singapore are ready to approve your poor credit car loans.

    Don’t give up hope yet, below are a number of tips that can help you get your car using a car loan even when you have a bad credit score.

    Some Issues That Might Destroy Your Credit Rating

    • Defaulting on your other loans, foreclosure, and bankruptcy.
    • Missed or late payments
    • No or little credit history
    • Lots of existing debt
    • Not having assets to act as collateral (a car or a home etc)

    Confirm Your Credit Rating

    Different moneylenders will have different methods when evaluating a borrower’s credit score, but to help give you a clue, it could range as follows:

    • Excellent credit; 740-850
    • Good credit; 680-740
    • Acceptable credit; 620-680
    • Subprime credit; 550-620
    • Poor credit; 300-550

    For you to be able to get your credit report’s copy, you only need to get in touch with Singaporean Credit Bureau Ltd and the DPC. Both of these credit bureaus are gazette as the only credit bureaus permitted by the Singapore Monetary Authority (MAS) to produce copies of your credit statement. Immediately after you have received a copy of your history, make sure you evaluate it to confirm to ensure that you do not fall into poor scores bracket.

    To help give you a better point of view, you do have a possibility of receiving a personal loan as compared to those individuals having to rely on their credit history. When you are certain and ready to get an auto then you better plan to get a good car loan way before you start shopping for your dream car.

    One thing to keep in mind is that your credit report may include your personal information (apart from your contact information), any default records (that is the unpaid debts), each and every credit checks made, bankruptcy records which will remain in your record for 5 years, your credit accounts, loan inquiries and outstanding balances, credit repayments made within the past 12 months.

    Since you now know the things that affect your credit score, make an effort to find a few mistakes in your credit record and do fix them. The previous moneylenders, when you have a few, are the one who records all your payments. And it can happen that on some occasions they may fail to record your timely payments and get to only report the failure to repay on schedule.

    When you come across some mistakes, be sure to get in touch with the credit bureau that had provided you with the data. The credit bureau will then post your argument on your credit record to indicate clearly that it’s under investigation.

    Thereafter they will regularly keep informing you on the progress of this investigation. As soon as adjustment has been done, the credit bureau can then send you the modified copy of the credit statement to you as well as to the companies that made inquiries regarding your record within the past 3 months.

    It is recommended that you take the time to shop around for car loans, however, be cautious with the period of the car loan inquiries you send out. Having too many inquiries will certainly bring down your credit rating further. For this reason, try to apply for a personal loan after 14 days, as this will be reflected in your history as one solid inquiry.

    Also, ensure that you compare your rate of Annual Percentage (APR) for the car loans rather than looking at the low monthly payment it has. When you only focus on monthly interest and payments, you may not make out the bigger picture that you will be paying a lot more than you should. Don’t get trapped in making the personal loan period much longer only to have lower interest for each month, eventually, you may be paying extra in interest.

    Always bring with you someone when you go to a moneylender’s office. The companion may act cynical or unconvinced and can even pose questions that you will have overlooked. Some moneylenders possibly will want to convince you into taking the highest possible interests that they can offer, but your friend can help negotiate for you when you do not have the nerve.

    As soon as your credit is in good standing, be ensuring you keep track of the credit report. Also, make certain that your payments are recorded well to avoid mistakes. When you can, by making your monthly payments in full. When you would like to settle your cash loan earlier than it’s time period, confirm you will not incur penalties. Some moneylenders do charge prepayment penalties. When you choose to have several loans, it can be helpful that you have it with a single provider. In so doing you will easily be able to track your outstanding dues and payments.

    Because your credit record is bad doesn’t mean you have to forgo owning a car. You simply need to do work more, but in the end, it will pay off. Once you get a cash loan to suit your financial standing and need, confirm the amount you can spend on your car. Select your car prudently. Rather than choosing based on style, pick based on your need. Car loans for individuals with bad credit are available; just take the time to research.

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      Are Business Loan Myth Preventing You To Grow Your Business?

      The main purpose of any business loan is to increase revenue as well as achieving a competitive edge. When you are in need of funding, but you are uncertain about how to go about getting your business loan approved in Singapore, this guide can help you clear all your doubts.

      Often at times, you will need a business loan to help you purchase new equipment or even for clearing any pending purchase payables. It can, however, happen that when the banks reject your loan request, you may worry that your business will shut down.

      It is important for you to realize that business loans are an excellent source of funding that will help you operate and grow your business. This loan type may be used for the purchases of business machinery, financing your company, new premises, or for paying the employees salary and bonuses.

      For this reason when you decide to apply for business loan issued by the licensed moneylenders in Singapore, its imperative that you are clear on how you will use the money soon as the loan is approved

      An additional advantage of a business loan is avoiding the danger of seasonality. Lots of businesses bring in the most profits during the holidays season or in summer. This means that they have to purchase more inventories as well as advertising discounts well in advance. These investments may seem hazardous, but, considering that they have to be made during the low-season when the sales are often down.

      A business loan can also help you increase revenue through accepting expensive yet profitable projects that, the lack of a business loan’s help, might tie up a lot of your working capital, which would make it hard for you to run your business.

      Many business owners unaware to the idea of private lending thus forgo this important option because of the misconceptions that are floating around.

      It can happen that one of the below-listed myths is stopping you from going for a business loan issued by licensed moneylenders. Keep reading to identify those that might be preventing you from growing your business.

      Focusing Mainly On The Interest Rates Offered

      Always try to look at other factors other than the rates of interest offered on the business loan you would like to take out. Although you are not the only one who makes this crucial mistake, you, however, need to remember that you need to look at other aspects aside from the lower interest rate being offered.

      These should include the loan amount, processing fees, tenure, hidden charges, monthly instalments, penalties on missed and delayed payments, prepayment charges, as well as loan extension plans.

      It’s Not Easy to Get Money for New Businesses

      A lot of small businesses happen that they believe this myth. Partners and individuals miss out on crucial opportunities of turning their idea into a reality or even to grow their fledgeling venture. a number of Singapore’s licensed moneylenders do offer loans to help set up businesses and also fund the marketing campaigns you would like to run.

      These ventures may range from start-up loan to short-term SME loans for the salaried individuals, self-employed as well as contracted individuals as well.

      To Approve Business Loan You Require The Perfect Credit Rating

      For some individuals, poor credit ratings might pose an obstacle for raising money from lenders or even through the government offered grants. A good number of Singaporean moneylenders will approve a business loan even when it happens you have a less than ideal credit score, given that you meet the required business loan necessities.

      The provisions of the loan range from yearly revenue along with profits, cash flow, business size, business age and the nature of industry you are in.

      Each Licensed Lenders Are Scammers

      Some misinformed well-meaning friends and family may recommend that you stick to business financing from banking institutions or nothing, even when your company is suffering or even stagnates from the lack of funds. Do not let previous and bad lending experiences cloud your view of private funding.

      Always choose trustworthy certified money lenders over the unlicensed hacks. The earlier is a professional and also follows principled business practices. This also means that you will get credit on schedule and under affordable terms.

      Lenders Favor Larger Company Loan Compared To Small Business Loans

      Although certified moneylenders hardly get profits from large advances or even the loans that are for long periods, most of them are ready to work with all kinds of establishments – both small as well as large. Even then do not let this myth prevent you from seeking SME financing offered by legal money lenders in Singapore.

      In its place, you will need to focus on the cash flow and your capability to pay off for you to be able to make out the amount of money you will need to borrow.

      Unsecured Loans Come With Rigid Payment Schemes

      The traditional bank loans usually have fixed loan tenures plus EMI rates. Thus you will repay money based on a fixed schedule, not considering how the business is performing. When you have a small-scale company or your company produces seasonal goods, and that your company has flows and recede. This, in the end, affects your capacity to pay and it may also put strains on your finances.

      With the private lending option, you will get reasonable repayment plan or even tenure plans depending on the business needs. Of importance make sure that you pick short-term credit for all the transitory cash needs.

      Banks Are The Single Source Of Financial Support

      Traditionally SMEs in Singapore often turn to banking institutions and other similar financial organization for their funding needs. Even though this might be the custom in your chosen industry, however, you can rest assured that there are many other funding options that are worth exploring.

      Licensed private moneylenders in Singapore also offer working capital loans, and on many occasions without the tedious paperwork. With this in mind, you could get your funds approved under a week in many instances.

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        Not Everything You Hear Is True About Money Lending

        Given that you’ve heard the numerous myths about moneylenders, along with the strategies they use to convince you to borrow from them; it’s likely you may never consider getting a loan. Sure, there are disturbing stories and you need to know them. Even then, these are rare; particularly when you do your research.

        Take your time to locate a certified moneylender, and also know the options available for you, and you will avoid the shocking stories out there. Since it is about moneylenders, the conditions you will need to deal with, as well as what you need to actually know because it involves borrowing, provided you choose a certified moneylender once you are prepared to get a loan.

        All Moneylenders Are The Same

        This is not true, and there is more than one lender in Singapore. Actually, there is a reason why there is more than one type of loan. You will easily be able to find that one lender is different to the next.

        Meaning that the conditions will differ greatly too. When you aren’t ready to shop around while you compare the conditions, you will end up paying more in interest and also in other fees than you need to repay. When you take the time, confirm the lenders who are out there, and the type of terms being offered for you to make the best of.

        As a borrower, certainly you will find the conditions that work well for you. Therefore, be sure to do thorough research, compare, learn, and find lenders that is right for you to get a loan from. You also need to know the lenders to avoid when you would like to borrow.

        Personal Loan Is The Way To Go

        A personal loan may be the best alternative for you to settle your debts. This may be the case for some people, but not for all Singaporeans. This loan type is a great tool for repaying loans; but, when you don’t have good credit, you will not succeed in getting this type of loan. Or you could get the loan but the amount won’t be much as you ‘would like, this however meant to make it easy for you to repay.

        Thus occasionally, a moneylender or even loan consolidation may be the way for you to go. You need to do your research, to help you find the options available out there and then pick the best option for your current situation.

        Personal Loans Are Expensive

        Again, this may be the case, but only when you do not take the time to compare lenders. When you take the time to make a comparison of at least 3 to 5 moneylenders, you will obviously find some that will be charging you more interest as compared to what others will charge.

        When you don’t shop around and merely work with the first moneylender you find who is ready to offer you a loan, it’s quite possible that this lender will give you the most expensive payday loan you can take.

        Like with everything you decide to buy or even any sort of credit card you’ve taken in the past, a number of companies will have more reasonable terms as compared to others. Therefore, for this reason, you will need to find out those lending companies that are right for your financial needs, so as to ensure that you can handle their repayment conditions as a borrower.

        Credit Is Not Hard To Get

        When this is your situation you most likely think that you can’t have access to a loan at all. Especially in the current competitive lending Singaporean market, this may not be the case. When your credit rating is not great, you may find a few money lender who may loan you money.

        Additionally, you may also find moneylenders that are ready to work with you in settlement of your loan money as well. You just have to be aware of the numerous loan options available to you as well as ask questions in regards to how these types of loans work.

        Although you don’t have the perfect credit rating, you could find moneylenders who are ready to work with you. These lenders will also offer you reasonable terms for the loan once you are ready to borrow a payday loan with them.

        Buy Costly Items

        Some people think a personal loan is good for buying a huge TV, gaming systems, and even other pricey items. Actually, a lot of people consider this to be a good idea, and it’s really not. You might do this, however, it will not go that well for you and especially when you aren’t an accountable borrower.

        When this is your case, you will simply end up getting caught up in a repayment cycle, and most likely won’t be able to escape from it anytime soon. This means you will get stuck paying the interest, thus never repaying the principal loan amount which you owe.

        For this reason, be sure to compare different loan types, learn about the right options, and find ways to deal with purchasing the things you want more responsibly, instead of just getting a personal loan thinking it to be a good idea.

        All Things Considered

        It is possible that you have heard some or even all of these myths since they are about money lenders in Singapore as well as your capability as a borrower to get a loan. The fact is that there are a number of options available to you, and given that you already know how to compare and shop for the right loans types for you.

        It’s quite easy for you to get reasonable conditions as well as lending limits. Once you are ready to get a loan or as a minimum make a comparison of the lenders and loan terms. These are some of the little things you need to know about, this way you will ensure that you work with the right moneylender, who will offer you the right loan type to for your financial needs.

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          Everything You Need To Know To Compare Personal Loans

          One reason why personal loans are popular is that they make sense for individuals who would like to reduce interest paid on their debt. This loan type can also help simplify the debt repayment process.

          For instance, you could take a single loan to repay several credit cards debts. When you are considering taking out a personal loan, it is essential that you compare the available options cautiously. The following step-by-step guide can help you.

          Things To Consider When Comparing Loans

          Personal loans are issued by banks, peer-to-peer money lending networks, credit unions, as well as moneylenders. While you are comparing loans from different moneylenders, below are several points of evaluation to consider.

          Process of Application

          When timelines and convenience are important for you, the simplicity of the process of application is a factor to think about as you compare loans. Usually, you can apply online for a personal loan. For someone who prefers to apply online, then remove any lenders who want an in-person visit. When fast approval matters to you, don’t obtain loans from lenders whose timelines are longer. Most financial institutions offer rough estimates of the timeline the processing will take.

          Throughout the application process, it is frequent that lenders to offer you a pre-approval rate set in for 90-days depending on the information you provide at first. Borrowers need to ask lenders whether the rate can be changed before your request is finalized. Also, ask if it’s possible for rates to change once the request has been presented. Preferably, find moneylenders who aren’t going to modify your rate immediately after you’ve applied.

          For the application process to go faster and easier, ensure you are prepared to make the application for your personal loan. It could include gathering current pay slips and tax returns, have a list of property and your liabilities and getting W-2 forms plus 1099 forms indicating the salary earned. For self-employed individuals, it will show wages earned in the last two years.

          Unsecured Vs. Secured Personal Loans

          An additional key feature for you to consider when you are comparing personal loans is whether the personal loan you are taking out is unsecured or secured. When your loan is unsecured, no collateral is needed to guarantee your loan.

          This means that there are higher risks for the moneylender should you fail to repay and it’s harder for you to qualify for loans. When it comes to secured loans, presenting collateral means you are taking the risk of losing when you can’t repay.

          But, it’s easy for you to qualify for a loan because your moneylender can always acquire the collateral. Even then you need to choose whether you would like to assume the risk by taking a secured loan.

          Credit Score

          While you are comparing personal loans, it is important that you ensure that you can really get the loan you wish to take out approved. The key factor that will determine if you will be granted a loan is the credit score.

          In Singapore, many lenders accept a credit rating of about 600 for them to approve your personal loan request. Individuals who are eligible for the financing terms often have a credit score of about 700s and above. This needs to be supported by the records showing timely payments in past and current financial obligations.

          Most banks in Singapore won’t disclose exact score procedures, but they offer estimates of the lowest credit scores needed for you to get an approval. As you compare different loans, ask about the lowest credit ratings needed thus you can avoid reapplying to any moneylender who might turn you down depending on your credit records.

          Annual Percentage Rates

          You will also need to consider the borrowing cost. This is among the most important aspect of determining the type of personal loan you’ll choose to take. The rule of thumb at this point is when you are able to access a personal loan that offers lower rates than your debts from the bank, it’s much better than you consolidate the debts into the personal loan.

          So as to compare the borrowing costs among various personal loan providers, ensure that you check the annual percentage rates (APRs). APR is total rates of interest on a loan for a period of one year. These vary depending on your credit score. The lower your APR, the less your costs on the personal loan. As the most important deciding issue make sure to do many personal loans comparisons.

          Repayment Terms

          The biggest reason why people take out personal loans is to simplify debt repayments. When you are able to consolidate 3-4 higher interest loans to a single one, it will make your life much easier.

          Although one payment is convenient, try not to spend too much on repayment of your personal loan. Longer repayment term means that it will cost you more in sum interest whereas shorter repayment periods means the balance will be repaid sooner thus interest costs are lower.

          When a loan term is longer but you would like to reduce the interest costs, you might wish to repay the loan quicker. Confirm whether there are penalties on prepayment from all moneylenders you would wish to work with. When you’re looking at repaying your loan sooner, it’s essential you ensure that you won’t get penalties for that.

          The easiest way to compare loans is by visiting our website. By following these tips you will be able to compare personal loans obtainable from this marketplace and see whether there is a suitable loan for you.

          Origination Fees

          Most personal loan moneylenders charge origination fees when approving loans. Fees might be low to about 1% but might also increase to a high of 6%. When you borrow $5,000 and your origination fee is 1 percent, the fee will be $50.

          For a similar amount, when the origination fee is 6%, you will need to pay $300. Thus high origination fees increase the borrowing cost, so get a moneylender who is offering low or no origination fees.

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            4 Serious Consequences Of Skipping Your Loan Payments

            In Singapore, avoiding your loan repayments has severe consequences that may interfere with your future plans. One thing you need to keep in mind is to take out moneylender loans that you are always in a position to pay back on time. It may seem like an easy solution for you to default on your personal loan, but in the end, it will create much bigger issues that will follow you for many years.

            Most Singaporeans Get Unsecured Loans

            It’s impractical for a licensed moneylender or bank to require secured loans in small amounts such as S$10,000 or even S$20,000. Although these are huge amounts of money to an individual, they are small when compared to the sums of money handled by many big companies such as banks. For such small loan amounts, the moneylenders, as well as banks, often make use of products such as personal credit lines, personal loans, in addition to the credit cards.

            These types of loans do not require any sort of security – the moneylender basically trusts that their borrowers will pay off their loans. When a borrower is not able to make repayments, the money lending institutions will, in the long run, be required to write off these debts as a loss. This often means that the individual is in default.

            Although this may seem like a dream come true for a borrower, that’s not the case. You need to realize that you will incur dire consequences for defaulting on your loan, even when it’s unsecured loan type. These consequences may include:

            • Denied access to important loan types
            • Money in your accounts being seized
            • Difficulties landing a job
            • Facing Legal proceedings

            Denied Access To Important Loan Types

            When you do not pay off your loans, it will reflect in your current credit report. Having a poor credit rating may, in fact, make it hard for you to obtain important loans, like a home loan or even the education loans. This may actually deprive you of essential financial opportunities.

            For instance, people who are not able to access a home loan will many times be forced to rent. Such is a major waste of money since they are not able to purchase a home for reselling or to rent out.

            Also, the individuals who are unable to access education loans might end up struggling to land better job opportunities, or even obtain promotions. For that reason, even though getting your debts written off might appear to be a good thing for a short period, the actual costs are hardly worth it.

            Money In Your Accounts Being Seized

            Although the money lending institution determines whether the money in your account will be seized, the conditions and terms of the loan also have an influence. However, under certain circumstances, when you hold money with the lending institution, they will be able to repossess it and use for repaying the outstanding debt.

            Make sure you read through the loan details before you sign it. Obviously, when you have some money in your account, it begs the question why you aren’t making the repayments.

            Difficulties Landing A Job

            When you have failed to repay your moans in the past, it more likely will be reflecting on your credit records. When your debt is cancelled and you have made no attempts to settle it or even negotiate, the non-payment will indefinitely stay on your records. When you have made satisfactory efforts to repay your debt, for instance through the help of credit counsellors. After that, the defaults and partial defaults will be removed after three years from your credit record.

            A would-be employer cannot access your credit records, but they might request that you present them with a copy. Several companies have strict policies against employing individuals who are deep in debt or even those who’ve defaulted in the past.

            A hiring manager will consider this as an indication of irresponsible behaviour, and might even decide that your fiscal woes may affect your quality of work. In a few industries, for example, finance, the position can be almost impossible to obtain when you have a poor credit report (not many people will trust a financial counsellor who has a long default list!)

            Facing Legal Proceedings

            When the bank thinks that you have some money but you simply don’t feel like repaying it (this happens at times), they might open legal proceedings. Depending on the agreement you signed for your loan or the credit card, legally you are obligated to repay your debts.

            Usually, you will receive the initial legal warning when you fail to make your repayments in excess of 30 days. However, in some situations, the legal action might take place much earlier (for instance when the money lending institution finds out that you are making arrangements to go away from the country.)

            Secured vs. Unsecured Loans

            As a borrower, you are able to access both unsecured and secured loans from licensed moneylenders or banks. When a personal loan is taken as a secured loan then you will need to present some form of security (it’s used to back as a promise by the borrower), and as unsecured when it is issued based on reputation and a borrower’s trust.

            One example of the secured loan is a car loan, and a housing loan. In such situations, the security (your assurance that you’ll repay your loan) is your house or car in question. When you are not able to pay off your home loan, for instance, the lending institution has the right to repossess your home.

            A further kind of secured loan, that is often limited to well-off borrowers, is the Lombard lending. For these types of loans, the security maybe almost anything that is of high value (an example antiques, a set of vintage cars, or wine.) when the borrowers do not pay back the loan, the lender will acquire their collateral. Therefore, the result of not repaying your secured loan is easy: you’ll lose whatever security you presented for your personal loan.

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              Should You Consider Going To A Pawnshop For Money?

              You could be in a tight spot financially. You require a meaningful cash amount for an emergency; however, the banks will not lend you some. In addition, the credit card debts along with the moneylenders are too costly.

              In such circumstances, you will need to figure out a way to help you access the cash fast and all this without risking facing financial ruin. When you find yourself under emergency circumstances, you might have to consider paying a pawnshop a visit.

              In Singapore, pawnshops are fairly common, and according to the Singapore Law Ministry, there are 226 accredited pawnbrokers in the country. These types of lenders, in reality, might not be that bad as a choice for you, provided that either doesn’t mind having to lose the valuable item. Or when you are able you could comfortably repay your money within a period of 6 months.

              Below, are various features you need to be aware of when dealing with pawnbrokers. This will help you evaluate when this lender is the best choice for you.

              Features Of Pawnshops

              Quick Access To Fast Cash

              In Singapore, pawnshops are an interesting option when compared to visiting the banking institution or the licensed moneylenders to get a personal loan. You do not need to have proof of identity as well as income when you need to get the loan issued by a pawnbroker. What you require to have is a valuable piece that you could present as collateral to your lender.

              Once you’ve offered this, pawnbrokers may then provide you with some money rather easily since they are able to make some cash through selling the valuable even when you run off with the money. In addition to that, whereas banks may take some days in approving the personal loan, most pawnshops can pretty much offer you money upfront once you have brought in your pledge.

              Exchanging Your Valuable Item For A Loan

              In most occasions, Pawnshops are rather easy for you to work with. To start with you will need to take one or even more of the valuable items you own to a shop. The pawnbroker there will then appraise the products, and then give you the loan.

              For instance, when you take a watch worth S$15,000 to the shop, the pawnbroker might end up valuing it at about S$10,000 and thus offer you a loan amount of S$10,000. Normally you could expect to be given 60 to 80% of the entire value of your pledge (which is your watch) for your payday loan from the pawnshop.

              It is essential for you to keep in mind that you will be borrowing from the pawnshop, and not selling the item to them (although you might sell it to them when you choose to). Normally, you have 6 months to repay the cash back.

              Every time you offer partial payments, the 6 months repayment period would be reset. It is only when you are not able to pay back the loan money that you will end up losing your valuable item forever. In such a case, the pawnshop broker might auction off the watch in order for them to get better their loan money.

              Cost Of Pawnshops

              Getting a loan from the nearest pawnshop in the country is in fact quite cheap. In recent times it looks as if there has been rapid growth in the numbers of pawnshops available in Singapore. This has led to a rather heated competition amongst them.

              For them to be able to draw in more customers, these types of lenders have been reducing their rates thus giving a higher value to the customers’ possessions. They normally would only charge 1 to 1.5% a month, which is a lot lower when compared to the 2%, charged each month by credit card companies. At present, the biggest players in the country are Value Max, Maxi Cash, Money Max and Cash mart.

              Other Noteworthy Features

              In several occasions, when your items are sold during an auction for a lot more than the amount you owed the broker, it can so happen that you could even be given the surplus sum. For instance, given that you still have a loan from the pawnshop of S$11,000 that attracts interest as well as fees.

              When the watch is finally auctioned off it sells for S$12,000, it is then possible for you to make the additional S$1,000. Although this is much better than you losing the watch completely, it is not advisable that you do this. And besides, you would have earned a lot more money if you had sold your watch on eBay by your self.

              In so doing you would be avoiding all the fees and interest you would pay to a pawnshop broker. Besides that, you might probably end up selling the item for the much higher price, since most pawnbrokers will only be incentivized to only make a sale as fast as possible.

              Personal Loans vs. Pawnshop

              Even though pawnshops aren’t as bad as you may have expected, taking out a personal loan issued by the banking institutions is still a cheaper alternative. It so happens that most banks may charge you around 1% a month on the interest rate on the personal loan as opposed to. 1.5% which is charged by the pawnbrokers in Singapore. in addition, with banks, you do not have to be troubled about losing the valuable item since personal loans often come as unsecured loans. This means that you do not have to present any collateral for you to access some loan money.

              However, when you do not have a credit rating or even annual income to get approved by your bank (or maybe for a new credit card), the pawnshop could be a better idea, and especially when compared to the more expensive alternatives such as the licensed moneylenders that might charge an interest of up to 4% a month.

              Ensure that you are comfortable with letting go of your bag or jewellery, or even that you could certainly afford to pay the entire amount within 6 months for you to regain your item back. Otherwise, without any collateral, legal moneylenders are still your best bet when it comes to the quick and easy way to obtain cash to cross over your current financial difficulty.

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                Ways To Save Money With A Personal Loan

                There is a reason why even the rich people make use of loans. It’s about liquidity, leverage and numerous other financial catchphrases that “experts” use so often. Here is how loans can help you. When a personal loan is used responsibly, it could help you save some money as well as enhance your life.

                Even before you take out a loan it is important that you consider the amount you actually require and be sure to take an amount that you can repay with ease every month.

                Do Not Be Nervous When Using Personal Loans

                Loans are intended as financial tools to help you in time of financial need. However, when they are carelessly used, they might indeed end up hurting you. Even then it might be hard for anyone to experience life without ever making use of these financial tools. And at times failing to make use of them might actually cost you a lot more money and time.

                Finances would be a lot easy when it was a case of following complete abstinence. This means having to avoid making debt entirely. Except that this just isn’t realistic since sometime you might more or less need a personal loan to help tide you over.

                You might need for a car, house, and even education. Once you learn how to use a personal loan correctly and to your advantage, it can greatly improve your life circumstances.

                What A Personal Loan Is

                When you have plans to redecorate your home, you could consider taking out a home renovation loan. Given that you would like to pay for university fees, you could obtain an education loan. When you would like a car… well, you now know how it works. Nearly all loans are intended for a specific function. This means you can not take out a car loan and try using it on buying yourself new shoes since the moneylender will transfer the money straight to the car merchant.

                On the other hand, for you to be able to take out a personal loan, you do not need to have a particular reason. Besides when you have ready cash that you are able to spend anyhow you want, there are many ways for you to make the best of such an amount.

                Below are several ways that you could follow to help you take advantage of a personal loan.

                Use It For Funding Your Side-Business / Side-Income

                If you are considering starting a blog shop or even buying several camera pieces of equipment to rent out or use, taking out a personal loan might be the best way to start you off. When you are considering obtaining a business loan, you typically will require a 2-3-year-old track record “in the black” (that is without losing any money) for you to be able to get your loan approved. In addition, there are specific requirements (an example your business registration matters) that you might not be prepared with as yet.

                Even under such circumstances don’t permit this to stop you. This is because when you make use of an affordable personal loan issued by licensed moneylenders to help you invest in a side-business, the amounts of money that you will earn is a lot more than you pay for your loan.

                For instance, the usual S$4,000 personal loan that runs for a one-year period might have monthly instalments as low as below $400 each month. This isn’t exceptionally high returns for you to expect to get from your side-business that can largely repay for its entire loan after one year.

                Reduce Interest On The Existing Debt

                Another way a personal loan can be beneficial for you is by using it to help you save some money. This you could achieve by using low-interest loans to absorb the high-interest ones. For instance, given that you have a S$10,000 loan, that attracts a 12% interest rate.

                With this, you might get a personal loan that attracts a 6% interest, and then take out a loan amount of $10,000 using this deal to repay your existing higher interest loan. Having done this, you will end up gaining savings in long-term, since you will be repaying only half the amount of interest.

                Even with your credit card debt, you could actually manage it in the same way through doing a balance transfer. The interests might be a lot lower than using a personal loan. However, when that is not a choice, you could try to turn to personal loans. No matter what the case may be, do not let your debts get out of control.

                Advance Your Qualifications/ Skills

                When you choose to use the moneylender loan to help you pay for skills courses can be a suitable example. Even then, you might need to consider giving yourself time to pursue your studies using this loan type.

                For instance, you might use this type of loan to obtain a month or even two of your unpaid leave. For that period of time you could focus on enhancing your skills and by taking this free time, it will give you the opportunities to put together working plans (an example would be writing proposals and also action plans on the basis of your newly acquired skills as well as refine them), or even try them out.

                You need to recognize that there might be a temporary loss for the reason that you will have to pay back the loan. On the other hand, if it leads to you getting a promotion, you will in actual fact be able to make thousands of money for years to come in your new job. For instance, given that you have taken a $5,000 loan to acquire the new skill.

                Getting a raise of about $400 on the basis of your new skills and knowledge will translate into an amount of an additional S$, 4,800 a year. And by the time you’ve worked for 3 years, you will have earned an additional S$14,400. This amount is over and above twice the total of your original loan.

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                  3 Medical Situations Where A Personal Loan Can Save You

                  Healthcare in Singapore may turn out to be costly, especially when there is surgery involved. You may not have sufficient funds ready and the Medisave isn’t adequate, hence obtaining a personal loan to meet the medical bills may be a practical solution. Getting a personal loan for the medical emergencies will ensure that you don’t face financial imbalance.

                  Mostly, medical expenses turn out to be expensive and might literally drain all your money. Thus the best solution in this situation would be taking a personal loan that is easily accessible.

                  Although your medical insurance will cover some medical emergencies, it doe not cater for all the bills. Additionally, formalities for medical insurance are meticulous and time-consuming and during emergencies, you might be short of patience and time.

                  It can be disappointing to find out that the medical insurance alone won’t cover much especially when you are faced with all the doctors’ fees, medical, and diagnostic bills. This is might be the best time that you consider utilizing the personal loan for the medical emergency.

                  Below Listed Are 3 Medical Situations That A Personal Loan Comes In Handy

                  Covering Medical Bills before the Insurance Payout

                  Some medical policies require that you pay the medical bills upfront then they reimburse you. When you hold a similar policy, you will need to find means of making the payment before filing a claim. Luckily most lending institutions offer principle-in-approval for personal loan requests within 24 hours. Thus you are able to determine how you’ll pay the medical bills.

                  To Cover Medical Conditions Not Covered By Your Insurance

                  Some insurance policies have withdrawal limits depending on the types of treatment. Thus it’s likely that your insurance policy can only cover a fraction of the medical bill. When what is not covered or is remaining isn’t affordable, you won’t be able to use your savings to offset the medical bill. Therefore, you need an alternative source of funding such as the personal loan to clear the pending bill.

                  To Clear A Family Member’s Medical Bills

                  Most people forget to make savings for family medical emergencies. To help you pay for a family member’s treatment you will need cash—and you will need it fast. In such a situation a personal loan can be useful for you, and especially when you’ll need to do dialysis and other frequent treatments that cost more than thousands each month.

                  Some Benefits Of Getting A Personal Loan For Medical Emergency

                  • Terms of Both Long-Term And Short-Term Medical Ailment

                  You can use a personal loan for medical emergencies, regardless of whether it’s a surgery, care post-surgery, a short-term treatment or a long-drawn cure. This loan type will help you cover the initial payments to begin the treatment immediately, though you can carry on paying for the other bills as and when you incur them. The repayment is simple to handle since you could opt to repay in monthly instalments.

                  • Easy Application

                  Personal loans application process for medical emergencies is easy and pretty straight-forward. You could access this loan type online once you have registered through the lender’s official portal. You’ll require input all your details and once its completed, next would be awaiting the approval from your lender. The money lender will take a maximum of tops 24 hours. But, there are specific eligibility conditions that you have to fulfil in order to obtain the personal loan for your medical expenses. It’s advisable to confirm your CIBIL rating along with other terms in advance to ensure you avoid being turned down by the lender.

                  • Stress-Free Payment Process

                  The repayment of the personal loans for your medical emergencies is easy to manage since the loan period is sufficiently long. The rates are relatively comparative to this loan repayment period offered by your bank.

                  • No Collateral

                  Personal loans for medical expenses, when taken in good time, might prove to be helpful since it’s unsecured and you aren’t required to give any asset for security towards your loan. It will save you from any additional problem of presenting documents of your property to your moneylender.

                  Taking out a Personal Loan for Medical Emergency

                  Important things that you need to keep in mind as you apply for a personal loan for your medical emergency are:

                  Presentation Of Your Documents

                  It’s essential that you make sure to have all the necessary documents required by your lender ready. Proving that you hold a steady income needs to be presented to the lender for processing your loan.

                  When you are requesting a personal loan for an important surgery that will take long recovery time, you need to realize that your income might decrease depending on the disability and benefits your employer offers and when you sustain injuries that might make you unprepared for your work, the loan application might be rejected.

                  Doing Your Research

                  It’s always advisable that you stay informed beforehand. In contacting a reliable financial institution, you will find out regarding benefits offered by the loan and also compare it to other loans in the market. This eventually will help you get the best deal. It’s prudent to find out about all costs as well as the coverage of your loan, before going into surgery or entering in treatment.

                  Credit-Worthiness

                  The most important step in getting a personal loan is your being credit-worthy and having to prove this to your lender. Giving assurance to your moneylender for loan repayment is thought as very important for them to approve your personal loan.

                  Your credit record and your income will determine your credit-worthiness. Delayed payments and unpaid bills in the credit history will reflect poorly thus affect negatively the process of providing you with a loan for your medical emergency.

                  Even though medical insurance is essential in the present day, a personal loan for your medical emergencies acts as a contingency plan. Medical expenses during emergencies might seem endless thus it’s a good idea that you be informed regarding other alternative ways to help you handle such situations.

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                    Is It Possible To Lead A Debt Free Life in Singapore?

                    A growing number of Singaporeans often find themselves in tough financial situations because of high-costs of basic needs. Some also feel as if they are only working to cater for their daily expenses, thus leaving them with almost nothing to save. Facts illustrate that most find themselves facing an unfortunate debt crisis. When your debts are too high, you could approach a certified moneylender to take a loan for your financial needs.

                    For some years now, it is said that consumer debt will experience a vertical upswing in several Asian countries. The need to take a loan such as personal loans is not only because of housing demands but due to other needs like cars, vacation and many others.

                    How To Avoid Debt

                    Despite the high living costs, it’s possible for you to lead a debt-free life in Singapore. But, this requires lots of skills and dedication to turn around your money troubles. Below are some tips to assist you in managing your funds in a cautious manner.

                    Have A Saving Culture

                    You need to incorporate the saving culture in your daily life. Immediately after you’ve repaid your debts, begin saving for the future. This is a good resource for building funding for investment options. Maintain emergency funds to cover any unexpected situations in the family.

                    Evaluate Your Existing Debts

                    Its important step that you figure out the exact debt you owe. Make a list of how much you owe, the moneylender details, credit type and interest for every debt. Carefully reorganize all the credit card debts and personal loans to reduce the repayment burden. It will also help you clear your debts in a short time. Above all avoid getting more cash for repaying your debts, it’s not prudent.

                    Prioritise Your Debts

                    Soon after you have assessed your debts and you’ve removed unnecessary expenditures, its time to look into on repaying these debts. An effective and smart decision would be to start repaying the most expensive debt as it will help you avoid the high interests.

                    Establish Your Expenditure

                    To work out your financial troubles, you will require a good strategy for personal debt repayment. That means, calculating your outflows and inflows with the intention of managing your funds efficiently. Set up a comprehensive budget including your income against all the monthly expenses. Give yourself about 6 months adhering to this strategy and you’ll start to notice your financial problems reducing considerably.

                    Assess Your Expenses

                    Assessing your exact monthly expenditure can make it a lot easier to identify all the areas that you need to reduce the expenditures to help increase your savings. In taking drastic actions in your present lifestyle, it’s possible for you to increase your finances. This might involve taking a complete evaluation of both recreational and regular expenses.

                    Use Your Savings

                    It’s prudent for you to use your savings for instance work bonus to help pay off your debts. Doing so will make sure that you prevent delaying your debts, which might be costly to pay off due to monthly fees that are steep.

                    Check Your Spending Habits

                    Once you have reduced your normal expenses, proceed to check your daily spending. Lessen overspending to help free up more funds to pay off your debts. Having a budget isn’t meant to remove your joy in life, but it is an inventive way for finding a compromise on varying things we experience daily in life.

                    Talk About Your Crisis

                    Having large debts can be a cause of nervous breakdown for most people, particularly when you’re struggling to repay. Once you share the difficulty with family members, you will decrease stress and the constant panic. In addition seek a debt counsellor’s help, as you’ll get to talk about all your debt problems.

                    Adjust Your Spending Habits

                    To make sure you continue being debt-free requires a different approach to your expenditure habits. Be sure to handle your financial reserves in a prudent way and you will avoid debt.

                    What Drives People To Debts

                    Sudden Medical Expenses

                    It’s hard to tell when a medical emergency might strike in the family or even when an accident might happen. It’s said that 22% of your debts are caused by unanticipated medical expenses. You could cushion your family by investing in a medical insurance from the unexpected expenses.

                    Lack Of Savings

                    It’s important to inculcate a saving culture in your life. Not having savings for the future may definitely lead you to more debts. Saving regularly will assist you in becoming financially independent as well as invest your funds in other essential things. Being debt-free will lead to you having less stress in your financial life.

                    Gambling Problem

                    Gambling is a bad practice that can drag you into some serious debts. Gambling will take around 22% of your borrowed cash. This figure keeps going up because of the nature of gambling practices which eventually might become an addiction. However, the recently released statistics showed that a lot of Singaporeans are currently staying away from betting.

                    Lacking Wealth Growing Strategies

                    Direct parts of your salary into some type of investment to help Grow your wealth. In so doing you will be guaranteed minimum risks on your return on investment. Good investments can help you save on tax besides increasing your assets over some time.

                    Overspending

                    Many Singaporeans are more prone to big spending; a bad habit that often leads to them borrowing heavily. Studies show that 40% plus of all debts, the main reason for heavy borrowing is overspending.

                    Business Crisis

                    Sometimes entrepreneurs get into financial difficulties due to a harsh business environment as well as other factors. The majority of business owners borrow money to fund their businesses which can at times lead to a serious financial dilemma when the business is incurring losses.

                    Conclusion

                    With this tips, it is possible for you to lead a debt-free life in Singapore. What you need is a positive outlook and avoiding painful situations that attract debts. Make a budget to control your expenditures and then start saving for the future.

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