All posts in "Personal Loan"

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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      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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                  How To Make Sure You Are Financially Healthy When You Lost Your Job

                  Experiencing sudden unemployment can be traumatic for anyone. Retrenchment happens for many reasons, for instance, when your employer’s company is performing poorly or during bad economic times or for reasons more specific to the individual concerned. In such a situation, having some emergency funding can come in handy as it will help you cope during the time of being without a job. In spite of whether you’ve got some emergency money to keep you going or not, below are a number of ideas that will help you throughout this period:

                  To get you started you may consider drawing up a working budget for all the necessary expenses. Once done, be sure to follow it to help you to better deal with where your funds are going. Make sure you remove all the unnecessary spending such as taking taxis and even eating out at restaurants. And above all be ready to adjust your current lifestyle.

                  It could be rather hard to predict how long the unemployment period could last. When it seems as though it may possibly take a long time, then it may be time for you to make new drastic changes.

                  In the process, when you realize that the costs of making the car loan monthly instalments as well as maintaining your car are draining the savings that could be used in meeting your living requirements. It may be the time for you to look at if there are possible penalties and costs when you cash in on your car loan. When you realize that the proceeds you will get from selling the car may turn out to be inadequate to cover the car loan. Be sure to ask your licensed money lender singapore for the other personal loans options may be for you.

                  It is important that you consider reprioritizing your financial goals as well. When you find yourself having to decide between putting aside some funds in savings to help pay for the children’s further schooling in full, and saving some amount for your retirement. Do not forget that your kids have the opportunity to apply for study loans. Therefore, consider carefully on what is important and the alternatives available for you in Singapore.

                  Another thing that you may have to keep in mind is to stop making use of credit facilities that can often time incur high-interest costs. These costs tend to get inflated when you are not able to continue with the prompt monthly repayments. Also, try to continue being in control of all your monthly debt repayments. For you to be able to do so with ease, you will find that you have to reorganize some of your existing debts. For this, you will need to visit your moneylenders immediately to work this out for you. When you are in need of more help, you can visit the Singaporean Credit Counseling for further assistance in finding useful ways for managing your debt.

                  Insurance Policies

                  When you hold some life insurance policies, you could consider asking the financial consultant representative about the possible choices that you have. With these policies, you could be possible for you to take out a personal loan or even a premium holiday against your existing policy’s cash value (when you possess one). This amount realized from this can pay up for the premiums to help keep your policies in force, though interests may be charged. You will also need to realize that these are short-term features and you need not depend on this option for an extended time period.

                  Be sure to ask the financial adviser whether you could convert the policy to a wholly paid-up policy or decrease the assured amount. Given that you do not consider taking up these alternatives and even stop paying your premiums, it possibly will lead to the termination of the insurance coverage. However, when you later apply for coverage, you possibly will be required to pay more money for premiums, or even not be eligible based on your physical condition.

                  Investments

                  Another important pointer you need to bear in mind is to analyze all your investments to pinpoint those that can easily be liquidated without attracting a penalty or costs too much when you are in need of some funding. When you are not prepared to lose any money, now might be the best time for you to liquidate all riskier assets.

                  Although some of these actions may seem hard at first glance, they can, however, help you manage your funds during this tough time.

                  Once you have found new employment again, also make sure that you follow your priority of rebuilding your emergency cash savings. At all times, aim at keeping 3-6 months worth of your monthly expenses in savings continuously.

                  Assistance from The Singaporean Government

                  Most of the Singaporeans might not have any existing cash savings and even assets to help them cope during this tough period. When you are in need of help and support, you could approach Singapore’s Community Development Councils (CDC) for some of their services.

                  Assistance To Find Employment Placement

                  The Singaporean Councils for Community Development will gladly assist you with the career needs that will include assessment, career profiling, job-matching to facilitate you in finding suitable jobs as well as training opportunities.

                  Approach Legal Moneylenders

                  When comes to paying bills, don’t let them pile up. If needed, try to negotiate for a lower monthly repayment or consider taking up a cash loan to tide this difficult period over.

                   

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                    Licensed Moneylender Interest Rates

                    Taking out a loan in Singapore is very easy. This is because you do not have to get a loan only from banking institutions. There are many money lender singapore available within the country that you are now able to approach at any time you are in need of a loan. Nonetheless, it is especially important for you to make sure that your moneylender is accredited by Singapore’s Law Ministry.

                    This is for the purpose of helping you avoid getting into more serious problems. In addition, it suggested that you take time to care the different interest rates and terms being offered by the money lenders. This way you will better able to choose the loans type that will meet your financial requirements.

                    Do make sure that you at all times take out a loan from a licensed moneylender who lets you pay off your loan with ease. This means your money lender should not pressurize you in any way or even make sudden changes to the loan agreement.

                    Before you can accept a loan and sign the loan contract, be certain you understand the terms the agreement requires of you. It is important for you to realize that once you have signed the contract, the contract is binding for you and your lender. And a failure of either of the party to honour their part of the agreement, you can be prosecuted by law.

                    Therefore, ensure you make your repayments on time and should there be an issue that would make you not make your payments, always talk to your moneylender to adjust for you your repayment terms.

                    Protection From MAS

                    The government knows that there are a few licensed moneylenders who are capable of taking advantage of worried borrowers. This they do by charging them really high rates of interest on their loans. In order to ensure that the borrowers are protected the Singaporean government has put in place regulatory measures for the moneylenders to follow. Since the beginning of October 2015, it is illegal for authorized moneylenders to charge interest that is above 4% each month. This regulation applies to personal loans in spite of them being unsecured or secured.

                    In situations whereby a borrower fails to make their loan payments on schedule, no licensed moneylender permitted to charge fees that exceed 4% for every month the loan amount is overdue. Simply put, all loans taken out from authorized moneylenders in Singapore are capped at a rate of 4% each month irrespective of the current situation. This ensures that no borrower is overcharged or is protected by law in case there is a breach of this regulatory law by a moneylender.

                    How Interest Is Calculated

                    The moneylender regulation requires that the rates of interests charged on the money taken out from a legal moneylender need to be calculated using the reducing balance method. In other words, this implies that the calculations of the rates of interest to charge on a moneylender personal loan has to be worked out using the principal outstanding amount after the paid figure of the months preceding has been deducted from the original loan amount issued in form of a loan.

                    For example, let’s look at a situation whereby borrower X has taken out a loan amount of $20000 and to date has paid off $15000 during the preceding months. Therefore, the interest rate for the present month needs to be calculated on the outstanding $5000, which will now be treated as the current principal.

                    In Singapore, it is against the law for a licensed moneylender to charge any interest on the remaining loan before it reaches its due date. This is one very significant aspect you need to think about as a borrower when you still have some overdue loan amount. For example, if an individual takes out a personal loan of $20000 from an accredited moneylender and yet he fails to repay his first instalment totalling $4000 on schedule, the moneylender is only allowed to charge interest on the $4000 amount and not the outstanding $16000. The reason for this is the due date for the outstanding $16000 amount has not yet reached. Therefore, this amount cannot draw any interest to itself as yet.

                    In accordance with the Singaporean Law Ministry, the highest fee that may be charged on a borrower’s late payments is $60. In addition to this, the administrative fees that should be charged on a personal loan approved are not supposed to go over 10 percent of the loan amount.

                    On the other hand, there is no rule that calls for licensed moneylenders in Singapore to charge borrowers a 4% interest on the loan money they have borrowed. This is a cap interest rate laid down by the Singaporean government to help protect the wellbeing of Singaporean borrowers.

                    It is, as a result, the responsibility of the borrowers to make comparisons between several moneylenders as well as negotiate for a much lower interest rate for their loan.

                    The wonderful news is that the competition among Singapore’s licensed moneylenders is high. For this reason, some moneylenders charge interests as low as 2 % for each month. Even then, low-interest rates need not be a reason for borrowers to shop for moneylender personal loans blindly. They also need to look at the other important factors before selecting the most fitting licensed moneylender. Some these other factors you need to carefully consider include things like the loan terms and conditions as well as whether the loan addresses your financial requirements.

                    Conclusion

                    Singaporeans are spoilt for choice when it comes to accessing loans. This is because banks are not the only ones that issue loans. There are many moneylenders available within the country that you are now able to approach at any time you are in need of a loan. In order to ensure that the borrowers are protected, the government has put in place regulatory measures for the moneylenders to follow since the beginning of October 2015. The moneylender regulation requires that the rates of interests charged on the money taken out from a legal moneylender need to be calculated using the reducing balance method.

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