All posts in "Personal Loan"

How To Get Low Interest On Your Personal Loan

Borrowing money is among the many options available to an individual when they need a personal loan. Before you decide to get a personal loan be sure that you have thoroughly done your homework. Also be very clear that a personal loan is the best choice for your financial needs. You then need to review the choices open for you and decide on the one that will best work for you.

Of importance is that you understand the charges and fees the loan would attract. And also take note of the repayment schedules and conditions. You can also ask for the loan that has an early repayment option.

Even then, in Singapore, you will find numerous different loan types and also different schemes tagged onto each type of loan. This will on many occasions confuse borrowers when they are looking for the best type of loan that they can take. Even then, it is advisable that you make your inquiries to ensure that you understand what each loan terms are. This way you will be able to make informed choices to ensure you get a loan that fits your financial needs.

Below are ways in which you can have access to a low interest for your personal loan.

Advantages of Mortgage Loan Calculator

Personal Loans Demystified

A personal loan may well be the best possible loan type for you to get when in need of emergency cash. The fast cash advances and loan services offered by most licensed moneylenders will allow you to have peace of mind. This for a borrower means less stress.

The loan repayments are often times worked out mostly based on your income as well as other factors. Hence it is still possible for you to get low interest charged on the personal loans you will be taking. Since most personal loans are unsecured. Thus potential borrowers in Singapore do not require to present any type of collateral and mortgages when taking this type of loan.

Factors Of Low-Interest Loan And Eligibility

One of the major factors that moneylenders use to determine your loan eligibility largely is on a borrowers’ income level. Also, lenders look at the borrower’s source of income. The more a potential borrower earns, then the higher the amount of loan a borrower will be getting. This major factor also plays a role in determining the increased chance of your loan being approved. This also means you may get low-interest rates on your personal loan. This practice is commonly done by both licensed moneylenders and banks as well.

Another common practice that licensed moneylenders and most banks do is to allow borrowers to take up to 4x of their monthly salary. In addition, when you are able to prove that you are able to make your loan repayments on time, your personal loan agreement may be worked out to be a better deal for you. This will mean that the terms and conditions of the personal loan will work best for you.

When the Loan Offer Is Too Good

The adjustment of the Moneylender’s Act in 2010 has in recent years led to many money lending firms opening up in the neighbourhood and the suburbs. They are also able to offer a range of loan services to the Singaporeans.

On the other hand, it has been noted that there is also an increase in the number of moneylenders with bad practices. And the coming up of many new and unlicensed moneylenders who at times pretend to licensed moneylenders to lure potential borrowers.

These wayward lenders often target on borrowers who are in urgent need of cash hence getting themselves into endless bad loan debts.

Normally, wayward lenders will often offer very low-interest rates to the borrowers but then implement fees and give difficult terms of repayment that the borrower isn’t able to match up.

Compare Different Loans Before You Borrow

Make sure to always compare the different loans offered by different money lenders in the market. This the simplest rule of any consumer. There are various personal loan interests offered by different financial institutions, therefore, ensure you make comparisons. And then choose from amongst those the one with lowest interest rates. Find out the loan offerings available for you as a borrower, and consider the debt servicing ratio you have. This is a sum of your debt – the monthly repayments on all your bills- compared to your total earnings.

This calculation technique will let you check if you could incur more debt. And also whether you can meet the monthly repayment on personal loans you hold. Most importantly, be sure to check that the debt servicing ratio doesn’t go above 50% of a total of your earnings. Otherwise, lenders and banks may not let you borrow the loans or offer you the higher interest rate.

Deal With The Right Moneylender For Low-Interest Rate For Your Loan

Once you fully consider your amount of debt and your monthly repayments you are able to manage, plus the outstanding debts you owe for each month, you can then finalize on your decision of dealing with the right certified moneylender.

  • Deal with the moneylender who offers you the lowest interest rates on the personal loan.
  • Ensure you deal with a reliable moneylender and is honest with you. Your loan officer is to advise you on the interest rate, loan amount, and the repayment schedule and amount.
  • Ensure that the moneylender can be trusted and licensed. Most licensed lenders will calculate your repayment package that best suits your current needs.
  • Deal with a moneylender who has good reviews. Also, take your time in comparing the loan interests between different lending companies.
  • One thing to bear in mind is that you ensure to meet your repayments on time.
  • When you consider time flexibility, be sure to choose a moneylender who can offer you this for your personal loan.
  • Look out and be sure to read the loan terms. Ensure that you have Read the moneylender loan contract terms. Also, ensure you understand what you will be signing.

Read up on our list of approved legal moneylenders so you are better prepared in picking the right service to suit your financial needs.

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    Reasons Why Singaporeans Take Out Personal Loans

    Most Singaporeans have been brought up with the belief that loans can be bad for a person’s finances. Nonetheless, it is good to bear in mind that a personal loan can be useful when used wisely. By choosing the most suitable personal loan, you can strengthen your finances. This can be the result when you use the loan in a smart manner.

    You could also even enhance your personal relationships. If you have ever found yourself wondering what you could use a personal loan for; below is a list of 10 practical reasons why you may want to apply for a personal loan.

    Avoid Making Insurance Claims

    If you have an insurance policy, then you most likely have read through the fine print before you put your signature. In Singapore, there are insurance policies that offer bonuses to individuals who don’t make claims within a given period. Some insurance policies, on the other hand, limit the number of claims for a given period. When the claim is a minor one, some Singaporeans opt to apply for a personal loan. This way they avoid making an insurance claim.

    You can never tell whether you might have to make a claim for a more serious issue in future. Getting a loan may also assure that they receive a bonus for not making an insurance claim.

    Keep Your Savings While Making A Huge Purchase

    Assuming you have S15, 000 saved up for a splendid family holiday in Bali. This money may not all be used for your family getaway. This is considering that an emergency could happen during the vacation. If you have by now used most of the savings, then taking a loan may just be what you need to do. You can then pay back the loan in instalments to have the surety that you have your savings. Savings give you peace of mind and in spending it all may make your financial situation little shaky.

    Purchase Of Wedding Rings

    As an alternative to using a credit card for the purchase of wedding rings, you can opt to use a loan instead. This is because credit cards will charge you very high interests. You could choose instalments as a way to repay your credit card. But when you fail to pay the monthly amount, it will definitely affect your general financial situation. You can apply for a low-interest personal loan. Moneylender’s personal loans have an interest rate limit of 4%.

    Avoid Using Credit Cash Advance

    Most credit cards offer a cash advance loan facility. This allows you to withdraw a given amount charged to your card’s credit limit. This means instant cash for you but it comes at a high price. The money you withdraw is charged an interest rate and a processing fee. The amount also attracts an interest which is charged each day until the credit amount is fully repaid.

    You Can Help Your Family And Friends

    Matters concerning money among close friends and relatives can prove to be a tricky issue to deal with. During times of emergencies like a medical emergency, your financial help may be needed most. This is especially true when you have a close-knit family. However, relatives and friends tend to offer many stories when they do not repay the money they borrowed. When this happens, you are more likely to be low on your savings. In addition, the relationships will also be broken. For this reason, you need not gamble with your savings. For you never know when you may have to deal with your emergency.

    Getting a loan may be an easy option and you can easily repay the instalments. Then you can lend your friend or relative the funds. In this case, you get to save your savings. Also, let your friend or family know that you got a loan for them. This tends to give them the push to repay back the amount they borrowed from you.

    Debt Consolidation

    When you have multiple credit card credits, you can take a personal loan to take care of the debt. This also ensures that you do not keep tabs on several due dates. Instead, you work with a single due date. Using a personal loan you are able to fully pay the credit card debts. And you do not need to get an additional card for balance transfer.

    Home Renovation

    Banks often times are the ones that offer home renovation loans. Even then, when you have a minor renovation you want to do, you can settle for a personal loan. And again, if by now you have used the renovation loan, then a personal loan can help you finish the work. This may be better instead of leaving parts of your house half-finished.

    Late Payments

    There are workers who receive late payments in spite of the firm regulations set by the Ministry of Manpower. This means a personal loan can help close the financial gap. This is better than starving while you wait for your salary to be deposited late in your account.

    Time-Sensitive Purchases

    Assuming you have been saving for an item you have wanted to get. And then the item suddenly goes on sale yet your savings are not yet enough. You can choose to take a personal loan to help you acquire it.

    Avoid Borrowing From Family And Friends

    Many Singaporeans value their pride. They are more willing to take short-term loans than to ask for help from their friends and family. A personal loan can be used to lend to friends and relative, for paying bills and for daily use before the next payday. This loan type is flexible and multi-purpose.

    You, however, need to be very smart when deciding on the most suitable personal loan. Moneylenders provide fast cash loan. The vast experience gained over the years ensures some lenders are better able to understand your needs. The needs of people have become rather dynamic therefore personal loans need to be easily accessible. Many moneylenders in Singapore strictly operate independently and client’s information is kept completely confidential and is not distributed.

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      How Long Does It Take Before Your Credit Score Looks Good Again?

      Singapore has a high standard of living. It is not unusual for you to go to some financial institution to get a loan. You may need a loan for several reasons, such as taking a vacation, buying a house or car, or paying for tuition.

      For you to get that loan, from banks or moneylending companies, your credit score has to be sound. Some people don’t pay attention to their credit score till they apply for a loan. Knowing your credit score is important, just as maintaining a good credit score is important.

      Then you get your credit report and your score looks horrible. This is because all your repayments are late, and you never pay off your due balances in full. You need to get a loan, but your credit score says ‘that’s impossible’. You are at your wits’ end, fretting over how you can make your credit score look decent once more. If this is you, read on.

      Credit Score – What Is It?

      A credit score is a group of numbers, or just a number, that financial institutions such as banks use to prove that you can repay a loan, or you are most likely to default on loan repayments. For instance, the Credit Bureau Singapore (CBS) uses four-digit numbers to grade, or score, your loan history. This score, called the CBS Credit Score, goes from 1000 to 2000. If your credit report has a score of 1000, it shows that there is a high probability that you will be late on your loan repayments, or even avoid paying them. If your score 2000, it is certain that you will repay your loan, and on time too.

      You should note that CBS does not make the decision for banks to give you a loan or note. They just provide your credit information upon request. Note too that other factors affect your eligibility for a loan, such as your income, number of credit facilities you have used, length of unemployment or employment, and so on.

      Credit Score – How does it Affect Me?

      Your credit score has an enormous effect on your ability to obtain a loan. If you are aiming to get a new car or buy a piece of property, you will have to apply for a loan. This would be a car loan or a mortgage. Once the banks see your poor credit report, none of them will approve your loan request. There go the house and that sweet car.

      A poor credit report doesn’t affect just car loans and mortgage. Any type of loan, such as a payday loan, and educational loan, or a loan for a new credit card, will be denied you with that bad credit score.

      How Do You Fix A Bad Credit Score?

      If your credit score is bad (which is why you are reading this), do not lose hope. You can redeem your bad credit score, although this may take you some months to accomplish. For instance, Credit Bureau Singapore will consider your credit score clean and healthy once they can provide evidence that you have repaid loans and balances on time for 12 months.

      Therefore, you can wipe out your terrible credit past by changing your repayment attitude. In the past, you were repaying very late, not completing balances due, and constantly paying below the minimum amount. Now, you are making all monthly repayments on your loans and credit cards on time, always paying above the minimum amount. Do this for 12 months, and you will effectively clear your poor credit history.

      There are other things that you can do to keep your credit score in good light, such as:

      Reducing the number of credit cards you apply for. Credit cards can lull you into spending too much: try to use cash more often.

      Stop all activity on credit cards you aren’t using.

      Always make your payments on time. Relating to credit cards, your credit card bills need to be paid on time and in full. Even if you can’t make the minimum payments, the time you pay back every month should stay the same.

      Applying for numerous loans in very brief intervals is a no-no. Avoid this at all costs.

      Credit Score – The Unfixable

      Unfortunately, there are issues on your credit report that can’t be fixed. These problems go past the stage of late loan repayment and advance into the areas of bankruptcy and payment defaults. Irrespective of how healthy your credit report looks, once you have entered those stages, they will always appear on your report. Regardless of how much time has passed since then.

      While your redeemed repayments and what-not are reflected in a section called ‘Account Status History’, the issues of bankruptcy and defaulted payments are shown in a section titled ‘Summary’, which is at the top of the report. Specifics of the current state of those problems, such if they are in progress or discharged or outstanding, can be seen as you go on reading the report.

      What Else Do Banks Don’t Want To See?

      When you pay off your loans or bills, there are certain codes that you get. You can visit the website of the Credit Bureau to get more, in-depth knowledge of what the codes mean. The codes are denoted by letters, each with a different meaning.

      However, some of those codes can damage your credit score. These include:

      • H –This shows that your account had to be closed (involuntary closure), and it was done so while there was an outstanding balance
      • R/S – either one of these codes means that your bank has closed your credit facility or your account. Also, it shows that there has been a restructured outstanding on that account
      • W – This code stays on your credit report for life. It shows that you have defaulted on your payments, and it is the most damaging code for your loan application.

      While it may take you at least 12 months to clean your credit history, there are problems like defaults that can still affect your credit score. Nevertheless, there are some moneylending companies that can give you a loan, once there is proof that you are good for it.

       

       

       

       

       

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        Best Personal Finance Tracking Apps In 2017 That Help You With Financial Problems

        Many people are not able to stay for an entire day without regularly checking their smartphones. Considering checking text messages, checking emails and chats has now become part of our daily routine. Smartphones are very smart that they enable us do shopping and pay the bills and yet be on the go. Smartphones can enable us to maintain a track of our finances as well.

        By use of downloadable apps, you are now able to create a budget that you can stick to and even making investments through your phone. There are numerous finance tracking apps available in the market that it is rather frustrating to find a suitable one for your needs.

        Why The Need For A Finance App?

        There are a large variety of financial challenges that people face in their everyday life. Financial challenges are hard to tackle since they involve the much-dreaded balancing of financial accounts. When your financial problems are not handled immediately, they could eventually lead to a major financial setback. You will to first identify the root cause of the problem you are facing and then work at finding a suitable solution to overcome it.

        You will need to recognize the things you often spend your paycheck money on and ways in which you can holistically make a move towards better money management practices. You will need to break off the habit of living from paycheck to paycheck or borrowing from legit sources like moneylenders. You will also need to establish ways of ensuring you have extra savings using the least effort possible.

        Some Of The Best Personal Finance Apps In 2017

        Wally: Best For Tracking Your Expenses

        Wally is a free personal finance app, which helps you recognize all the areas where your money goes, and ways in which you spend and when you do the spending. This app also allows you to save photos of your receipts for purposes of records.

        Your financial lives can sometimes be complex and not every one of us loves accounting. In using Wally, you will be able to easily to notice what happens to the money you bring in, what was saved, what you earn and what you need to adjust to your budget.

        The Wally App is very easy to use and it makes tracking your finances very simple as well as convenient for you. The time you spend some money, you will only need to take out your phone. The graphs generated will give you insight into areas in which you spend money on. In this manner, you can well understand your spending behaviours and ways you can save up more.

        Mint: To Help Manage Your Money

        The Mint application is the creation of the Intuit Inc. the company responsible for creating QuickBooks –accounting software used for smaller to medium-sized businesses and the Turbo Tax- American tax preparation software.

        Like the real mint gives you a fresh breath, the Mint App has a refreshing effect on your finances. This app is web-based and is a free financial tool used to tap into your credit cards, bank account, investments as well as other financial accounts you may have. With this App you do not need to log into different sites, you only require to open a Mint account.

        The Mint App gives you the visual of the areas you often spend your money in, how much money you have in the bank accounts, which of your accounts need additional funding and whether you will end up messing with your own budget. The Mint App makes it possible for you to handle your finances in ways that are beyond simple budgeting process.

        You Need A Budget (YNAB): To Help You Get Out Of Debt

        If you are tired of living in the endless cycle of paycheck to paycheck expenditure, then You Need A Budget (YNAB) will help you keep track of your finances. It will help you define your spending patterns, paying your debts, coming up with a workable budget and having some extra cash should you experience an unexpected financial bump.

        You Need A Budget pushes you to make a workable budget which differentiates it from other apps which require you to make a budget with money you may not have. And should you go off track, YNAB App will help you make necessary adjustments to your budget so that you don’t wreck the entire budget plan.

        The main purpose of this App is to have extra money for you to spend from the previous month’s earnings. This for you means you have broken free of the cyclic pattern of living paycheck to paycheck and you have some money to pay off debts and remain with some extra cash for your use.

        Despite the fact that users have to pay $50 annually, the support and services it offers are well worth it and it even comes with a money-back guarantee.

        Acorns: To Help You Make Extra Savings

        With the Acorns App, micro-investing becomes a natural way for you to earn more cash on the side making your spare change work for you. Each time you purchase using the card connected to the Acorns App, the app converts it to the next highest dollar. The distinction between the amount changed and the estimated cash amount is automatically invested in a portfolio of a low-cost exchange-traded-funds (ETFs) at the end of each year.

        Acorns app sends out a questionnaire to get to know your financial goals and situations and thereof the app makes recommendations which are a mix of ETFs that you can invest in. you are able to manually set up a one-time and even recurring investments. The app charges account having less than $5,000 a monthly fee of $1 while those accounts with more than $5,000 are charged 0.25% each month.

        The different apps can turn your smartphone into a financial companion driving you towards better money management practices. You can use apps for different financial reasons but they are effective depending on how you change your spending patterns.

        For you to reach your financial goals it will take time and discipline on your part, however, you will from time to time experience some financial gaps. Even then do not panic since you can access a personal loan from moneylenders in Singapore.

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          Welcome to Singapore: How An Expat Start His New Life Without Financial Worry

          Like in other highly developed cities of the world, life in Singapore can be expensive for a foreigner. Life in a city that bleeds you dry financially, can be difficult especially for an expat or foreigner with no kin currently in Singapore. This is even worse for foreign workers who are unable to come up with money to meet expected or emergencies. Singapore is the most well-liked work destination in the world. The growing economy, high living standards, political stability and the perfect investment atmosphere are the factors that contribute to the constant in flow of expats coming into Singapore. Most of the foreigners stay longer after experiencing the elevated quality of life on this island.

          The high cost of living can potentially cause problems for expats who have a limited budget. As a foreigner working in Singapore accessing a foreigner loan from banks and other institutions can especially be very difficult. This is because the requirements are severe and being a foreigner, the loan application approval is very thorough. The loan application process takes a rather long time and the interest rates are equally too high because most of the foreigners do not possess any assets in Singapore to act as collateral. The assistance of the foreigner loan can help you as a foreigner; raise the amount of money you need to meet your expenses.

          The Financial Burden

          1. Deposit for rental of your apartment. When you are new in a country away from friends and family, you will require having sufficient funds to cater for your needs. To have a roof over your head, money for rental purposes is needed.
          2. Traveling around in Singapore to explore the new house, new school for your children. Before settling in Singapore, you will need to look around for a new house and a suitable school for your children. Money here becomes a factor as to the kind of house and school you can get.
          3. Deposit for school admission and school fees. Once you have found a school for your children, admission and school fees is to be paid to secure your children’s education.
          4. Having a house will require you to furnish it to make it comfortable for your family. In addition, you will have daily necessities to prepare for in a new country.
          5. Buying of a car. A car becomes an essential part of your stay as it makes you mobile in exploring Singapore and getting to work.

          Difficulty In Obtaining A Loan

          In order for you to have access to the loan facilities in Singapore, the lack of assets and proven work records makes it rather difficult for foreigners. A bank requires a long time to approve loans to a foreign worker since the application process and authorization are rather rigorous. Further to this, the percentage rates on foreigner loans from the banks are higher than the standard rates. The high-interest rates are attributed to the fact that many foreigners do not have assets in Singapore to be taken as collateral. Such a loan poses a big risk for banks than loans to local borrowers.

          This for most foreigners is not a major concern considering they require the funds, and that they are able to pay back the loan by the next income. It is about being able to reimburse your loans within the contracted time limit. 

          Approach Moneylenders For Foreigner Loan

          Make sure you apply for a foreigner loan from an accredited institution. Here you will be required to fill an application form available online attach your required documentations and then wait for a loan officer to contact you to set up a meeting at the bank offices. The bank representative will normally contact you within a day. You will be required to present your documentations for the verification and application processing of your loan. A valid work permit, proof of residence and a valid passport are some of the required documents you will need to present to the bank. Below is a list of the documents you will need to present for your loan application.

          Needed Requirements For Foreigner Loan Approval

          • You need to be between 21 and 55 years old.
          • You require having a valid work permit
          • Make sure you have a valid Passport
          • Make sure you have employment letter as proof of full employment
          • Proof of residence. You can submit a bill with your address printed.
          • Original and copies of current payslips for the past three months
          • You need to have a current Bank statement

          Speedy Approval And Friendly Consultation

          Foreigner loan application is easy to do, as you are required to fill an online form of application attaching the requested for documents then wait for the bank representatives to contact you. Once your documents and details have been verified, you will need to sign a loan agreement and the loan will be approved and funds disbursed immediately to your account. This way you will be empowered to meet your financial needs with ease.

          Conclusion

          Life in Singapore is rather expensive and for a foreigner working here, it can be even more difficult when they are working on a limited budget. Even with the perfect conditions for a thriving economy and political stability, the foreigner numbers are constantly rising. For a foreigner, life away from home is a big challenge when you are short on money.

          Getting a loan from moneylenders is equally not easy for an expat since they hold no property and assets to use as collateral for their loans. Foreigner loans have very high-interest rates since banks are taking a big risk loaning money. As a foreigner living and working in Singapore, do make sure you apply for loans from certified moneylenders.

          Since Singapore government has stipulated regulations that they are to abide by when offering moneylending services to their customers. Also, make sure you read through the terms and conditions for the loan to ensure no hidden charges are charged in addition to the normal rates. Once you are ready to apply for a loan present all the required documentations and signed a loan agreement, your loan approval and processing will be fast and smooth.

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            Should You Go To A Pawnshop Or A Legal Money Lender?

            Pawnshops are rather prevalent in Singapore. You may be in need of some quick cash to attend to an emergency; banks won’t loan you money, credit cards debt are fairly expensive in the current economy. The slow economic growth of Singapore has had adverse effects on most people making it difficult to access loans from money lending institutions and other financial institutions. This makes it possible for licensed money lenders and pawnshops to operate and experience a rapid growth. This is because both money lenders and pawnshops do not require you to have assets for collateral as required by banks.

            Pawnshops and certified money lending entities make it easy to access to quick cash. This works best for those who require small and urgent loans. Pawnshops and money lenders normally offer higher interest rates and money is available without the review of your credit records. This makes is easy, fast and convenient in the current slow economy. The instalments make it possible for easy repayments. Since the cash is available upfront, there is fast approval period taken and you get to handle your money emergency issues immediately.

            What Is Licensed Money Lender

            Money lenders are institutions that are approved by authorization agencies like Singapore’s Registrar of Moneylenders. Before the money lenders entities are issued with a license, they are required to take and pass a test. Moneylenders normally function under a number of restrictions such as the loan limit they can loan out, the amount of fee and the interest rates they are to charge. To a licensed moneylender institution, its reputation is very important.

            These normally offer smaller loans compared to banks. They also make the loan amount obtainable much quicker than banks. This is possible when you have in the past have presented all your documentation and undergone the necessary background checks. Such a record allows you to obtain a loan within an hour from a certified money-lender. Moneylenders also charge higher percentage rates than banks, have simpler requirements for an authorization of a loan and tend to be more lenient when you hold a low credit rating.

            What Is Pawn Shop

            Pawnshops are fairly easy to work with. They offer loans that are secured using something valuable that you give in exchange for the loan. The valuable item- can be jewellery or an expensive watch- is retained by the pawnbroker until you have fully reimbursed the loan plus interest accrued.

            Pawnshops are under the regulation of government agencies and compared to the past, they more respectable. In the past, walking into a pawnshop, people would assume and believe you to be a gambler, a drunkard or as someone with poor management of their finances. This perception has, however, changed and pawnshops are now acceptable as another option for people to get loans.

            When you are uncertain of whether you can meet monthly instalments and whether you will have the money available for repayments, pawnshops are an ideal choice for you.

            Difference Between A Pawn Shop And A Licensed Moneylender


            Default Penalties

            Certified money lenders have high-interest rates on all their loans. In case you miss a few times to meet repayments to a money lender, the amount of interest gets compounded on the money you owe. This means when you default on payment, you will end up paying a lot more than you had initially borrowed. And soon debt collectors will be making visits to you to recover the money owed.

            When you make use of a pawnshop loan, and miss a repayment and are not able to pay back, the collateral you presented in exchange for the loan amount becomes the pawnbroker’s property. The pawnbroker can at his discretion sell off the item to recover the money you owe. The downside is that you will lose your precious item.

            Interest Rates

            The pawnshops charge very low-interest rates on loan amount borrowed. This rate is even lower than credit card companies charge. While certified money lenders charge a much higher percentage rate on the loan amount borrowed.

            Repayment Plan

            Money lenders have a structured repayment plan and a fixed instalment to be repaid monthly while pawnshops have flexible repayments; you get to pay when you have the money to make payments with no compounding amounts.

            Credit History

            Before getting a loan from money lenders they do a thorough credit history review to ensure you have a clean credit history, while pawnshops do not require looking at your credit history or do credit review.

            Collateral

            Pawnshops require you to present them with collateral which is a precious item that you own, while money lenders only need collateral depending on whether the loan you are taking is unsecured or secured loan.

            Trouble-free Access To Money

            Pawnshops offer an attractive alternative to going to money lenders. You do n not require to present proof of identity or income to get a loan, while money lender require you to hand in proof of identification and employment letter as part of the documentations they need you to submit.

            Conclusion

            The slow economic growth of Singapore has had adverse effects on most people. This has made it difficult for most people to access loans from money lending institutions and other financial institutions. The pawnshops and money lenders make it easy for you to access quick cash. This works best for those who require small and urgent loans.

            Since the cash is available upfront, there is no approval period taken and you get to handle your money emergency issues immediately. There are various differences between money lenders and pawn shops like the repayments plan; pawn shops offer the lowest rates and their repayment plan is more flexible, while money lenders have structured repayment plan with set monthly instalments.

            Money lenders charge high interests and when you miss a repayment, the amount compounds increasing the amount you had initially applied for. Pawnshops on the other hand, do not charge any penalties on any defaulted payments and the amount you owe does not compound. Pawnshops require you to present a precious item to act as collateral while money lenders only require collateral depending on whether the loan you are taking is unsecured or secured.

             

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              Payday Loan vs. Personal Loan: What Are The Differences?

              Singapore is one of the most expensive cities in the world. The thriving economy, high standards of living, political stability and a perfect investment atmosphere are factors that contribute to the continuous growth in the high cost of living in Singapore. Life in Singapore is rather expensive for any individual who has a limited budget. Living in a city that bleeds you dry financially, can be complex and challenging for you if you have a low income to sustain your livelihood in Singapore. This is made worse by an individual who is not in a position to come up with money for unforeseeable emergencies.

              Having access to a loan from banks can particularly be difficult if you do not have proof of your ability to reimburse the loan taken plus interest. This is so since the requirements are strict and the loan application process and approval is very systematic. The application process takes a long time since your credit history needs to be reviewed. There are many loan-types available from a different type of financial institutions in Singapore. These are meant to meet different needs for the borrower.

              Today, we are discussing the differences between Payday Loan and Personal Loan offer by moneylenders.

              What Is Payday Loan

              The payday loan is an intended advance on your up coming take-home pay. For you to qualify, you need to be above 18 years old. You also need to hold a steady job and a bank account. Being self-employed does not make you eligible for the payday loan.

              Payday moneylenders do not rely on your credit history, credit report or the absence of it to extend this service to you. Instead, a fee ranging between $10 and $30 is charged for every $100 borrowed. This makes the payday loan more costly than normal loans. The positive side they offer quick cash for individuals when they need it. Payday loans are mostly approved in 24 hours after the application has been submitted.

              What Is Personal Loan

              Personal loans work much like normal loans. During your application, you will be required to hand in your information concerning your income. The moneylender will then appraise your credit report to establish whether you qualify to receive the loan.

              Since personal loans are mostly issued as unsecured loans, the approval of your application will mean you get a monthly repayment plan and an interest rate as stipulated in your application. Once your loan has been approved, the moneylender will determine the amount you need to be contributing monthly based on your existing earnings and debt.

              Key Differences Between The Two Of Them

              Who To Borrow Loan From

              A government certified moneylender is the one entity that has both personal and payday loans. The other financial entities in the market only offer personal loans.

              The Purpose And Repayment Period

              Payday loans have a short-term repayment period of about 2 to 4 weeks. This type of loan is often for paying off bills and emergencies before getting your next take-home payday.

              Personal loans run for a longer period of 4 weeks to a few years and are intended for big purchases, investments and for business requirements.

              Who Qualifies For The Loan

              A payday loan is easy to get because it depends on your status of employment as well as your income level.

              The personal loan requires more strict checks. But it offers you the chance to borrow a larger amount of money, normally 2-4 times your earnings. This, however, varies from one financial institution to the other.

              Loan Processing Period

              The payday loan is processed much faster time owing to the effortless verification procedure of income and status of employment.

              Personal loan, on the other hand, takes more than one day for processing before you get the money. This is so since the institution has to do thorough checks to ensure that your credit history is impeccable.

              Loan Percentage Rates

              Payday loan charges a higher interest rate compared to personal loans, thus the shorter settlement period. This is partially due to the nature of the loan and your eligibility.

              Payday Loan Vs. Personal Loan: Which Is Best?

              People who require quick cash or emergency funds that are to be reimbursed within a short time need to consider taking a payday loan. Even though this loan comes with higher percentage rates compared to those of a Personal loan. The payday loan has higher interest rate and the short repayment period, meaning that you pay less interest, as opposed to a personal loan that has lower interest rate and is to be reimbursed over a longer time.

              However, when you intend to make a big ticket purchase, a Personal loan is a better option available to you. This type of loan is payable in instalments over an agreed upon period of the loan tenure. Additionally, these kinds of loan furthermore offer flexible reimbursement terms and you can choose either a monthly or a bi-weekly repayment plan.

              Singapore is one of the expensive cities in the world. Singapore’s thriving economy, high standards of living, political stability and a perfect investment atmosphere are factors that have contributed to the continuous growth of the high cost of living on the island.

              In order to sustain the high costs of living in Singapore, a borrower can access the various types of loans to be able to supplement their funds. Both payday loan and personal loan can contribute greatly to the meeting of your daily needs.

              Payday loan is the easiest to obtain as with a confirmed employment status and a bank account, you can have your loan approved fast. This loan is usually repaid once you get your take-home pay.

              Personal loans, on the other hand, allow you access to a larger amount of money that you can then pay in monthly instalments for a longer period of time. Each type of loan is best suited depending on the purpose of the loan; for fast cash to be repaid in shortest time a payday loan is the best choice while for a larger amount of money to be repaid over a longer time period and lower interest rate, the personal loan works best.

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                What You Need To Know Before You Get A Loan In Singapore

                A loan is a debt provided by a financial institution to an individual or an entity at an interest rate. A loan is often provided at an interest rate on the debt. Loan obligations are governed by contracts which enforce restrictions stipulated in the contracts. A loan is available for a specified period, one-time amount or as an open ended line of credit for a specific limit. Often the lender requires collateral to act as security in cases of defaulted payments.

                For an individual who needs quick cash, they have the option of turning to a family member or a trusted friend. Traditional financial entities have precise rules applicable when lending to individuals. Banks lend to individuals who have to proof of their ability to reimburse the loan amount. There are specified documentations that need to be submitted before your loan is approved and then processed.

                What Is The Purpose Of The Loan

                The reason leading you to take a loan determines the type of loan most suitable for your needs. When you are making plans to purchase a house, a home loan is suitable, if it’s starting a business a business loan is what you need. Every one type of loan has its positive and negatives that you need to be familiar with before making the final choice.

                Your Credit Score Matters

                Before contacting with a lending entity, you should get your credit in order. Consider whether your credit score high or on the low side. Make sure to pay off any impending credit and get a clean record for your credit report. An impressive repayment record for more than the past six months will increase your chances of getting your loan approved. This is important since most lending entities check your credit score ahead of granting a loan to you.

                Interest Rates Can Be Exceedingly High

                Make sure you check the lending institution’s terms of service. This will help you ensure the loan you apply for does not have any hidden charges. Be sure to keep away from loans with high-interest rates, these tend to cost you more over time. Take extra care when calculating the interest of the loan you intend to take. This will help you keep away from any interest going above 10% is really high, which for a normal loan is really high.

                Loans from moneylenders can be the most costly way to borrow. Singapore government rules allow moneylenders to charge the highest monthly rate of 4%, which translates to 48% annually. An upper limit of monthly 4% rate is charged for late remittance. An additional S$60 may be charged above the loan amount monthly contribution. A loan in Singapore can sometimes mean you are expected to pay a straight up fee as ten percent of the main amount. The total sum of the late fees, upfront costs and interest you need to pay could amount to the principal sum.

                What If You Can’t Repay Your Loan?

                Make sure to remit your contributions on time. When taking any loan, check, research and recheck on the penalties on late repayments, this way you would be sure to make timely contributions to avoid incurring the extra charges. As a marketing strategy, some banks do not highlight the penalty charges to their customers. This way they get to obtain more money from you.

                You are legally obligated to pay the loan monthly contributions on time. The money-lending companies and banks also have a right to require you to pay up. As a result, the banks or moneylenders would have their representatives pay you a visit till you pay the required amount; this is why during the loan application you were required to submit your address. Debt collectors are not allowed to result in violence or use inappropriate language to implement repayment. In the case of breach of your rights, borrowers need to report to Singapore’s Law Ministry.

                You Only Loan From Legal Moneylenders Or The Banks

                Make sure to check the money lending entity you choose has met the standards set by the Singapore government. There is a moneylender’s list available at the ministry of law’s registry.

                Avoid getting into any agreements with organizations that are not approved by law or even loan sharks.

                Certified moneylenders are under obligations to follow certain set rules. Licensed moneylender singapore are expected to do the following;

                • Legal moneylenders and banks are expected to break down all provisions of the loan’s conditions and terms
                • Moneylenders should submit a copy of contract note to the loan borrower.
                • Moneylenders need to carry out a detailed credit review before approving your loan request. They can do this by examining your pay slips and income tax review.
                • Moneylenders need to present you with the total amount of the loan taken. They are to give you the total amount without holding any amount back.

                A Singapore loan is a debt provided by a financial institution to an individual or an entity at an interest rate which is often accompanied by the interest rate on the principal amount of loan obligations are governed by contracts which enforce restrictions stipulated in the contracts. The reasons that you need to take out a loan determine the type of loan you will need. It is highly recommended that you do your research before approaching any financial institution for a loan.

                Before contacting any moneylender, make sure to get your credit score record in order and clean for more than six months. This will assist the banks or moneylenders to approve your loan application fast. In addition, prepare all the necessary documents to speed up the approval process as well.

                Take time to make a thorough search on the moneylender loans they provide to be sure there are no hidden costs. Familiarize yourself with any defaulting penalties, so you can avoid any late repayments and unnecessary additional costs due to late payments. When applying for loans, make sure to work with accredited financial institutions to save you future headaches and worries.

                 

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                  The Cheapest Ways to Save Money

                  Personal loans are very popular financial instruments as they can be used for virtually any purpose. That sort of versatility is what makes them appealing for clients. Personal loans are easy to obtain since there aren’t any harsh requirements or complicated documentation necessary for approval. However, private loans can be costly if you neglect to look for a creditor and take any offer you get. The rates of interest on personal loans are normally greater than that of loans that are secured.

                  Comparing Loan Quotes

                  There are online websites offering loan comparisons at no cost. By simply supplying some information about yourself, your own credit and income situation, these agents are going to have the ability to supply you with a comparison on various lenders in the marketplace offering the sort of loan you’re seeking with the loan conditions that matter to you emphasized for a simple analysis.

                  But though you will obtain some aid from these online websites, there are a number of things which you will need to do all on your own. Additionally, you should be concerned about yourself, about your finances and your reassurance and therefore, despite the fact that you might believe that a specific deal is your best one, you ought to be certain that you are able to afford the payments and you will gain in the loan requirements over the entire lifetime of the loan.

                  Interest Rate

                  The principal term you need to compare loan estimates is the interest charged, analyse all of your chances or limit yourself to conventional banks and financial institutions. Based on the use you’ll give to the cash, you may occasionally obtain cheaper financing by other ways. As an example, there are particular shops that if you will use the money to buy goods at the shop, will supply you funding at more advantageous conditions than banks. Additionally, certain online lenders who have fewer prices (since they need fewer employees) provide promotional prices and very valuable terms on private unsecured loans.

                  Apparently, a longer repayment plan will indicate lower monthly payments which will be a lot easier to afford. But a longer repayment plan also indicates greater overall interests and so, you want to discover a balance between both of these factors. Seek financing with low monthly payments you can manage but don’t focus on the payments. Make certain that you are able to afford the payments but attempt to obtain a brief repayment plan to prevent paying tons of pursuits.

                  Secured Loans Depending on Equity

                  Home equity loans offer cheap financing since the loan is secured against your property. You might Be fearful of risking your house but reality is that if you are able to afford the payments on an unsecured loan, then you’ll certainly be applying for a loan in any respect.

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                    Personal Loan Lenders Make A Simple Method for one to Borrow Cash during Fiscal Urgency

                    Getting an adequate pecuniary support from personal loan lenders that are professional means it is possible to quickly ensure your financial life by get personal loans with no hindrance.

                    Lots of fiscal options can be found for different types of issues that are pecuniary. Thus, many finance services in UK market are providing extensive selection of credit options to serve the different motives of individuals. It is possible to seek sufficient financial help through such loans in the event that you are facing some form of financial issues that you experienced.

                    Uncomplicated Qualifications Conditions and Uncomplicated Application Procedure :

                    In the event the borrowers also have their homes in the united kingdom and are above 18 years old, then they may be nicely permitted apply for such loans. But, the lenders also demand bank account information on the borrowers and an income source. These details are required by them due to the fact that they would like to possess some notion concerning the fiscal capabilities of these customers.

                    Another thing is the internet application process after finishing the qualification conditions. As soon as their on-line loan requests lodge, the lenders begin reviewing their details and do quick disbursal of money through bank transfer. Thus, personal loans ease quick disbursal of cash and people who have simple application.

                    Apply Without Any Stress of Poor Credit:

                    Another striking characteristic of having loans is they usually don’t need any credit check of these future borrowers. It means they’re well appropriate for the poor credit borrowers, who’ve been blown off by their banks or finance services as a result of credit ratings that are unsatisfactory.

                    In such forms of loans, the quantity of cash that is borrowed is little and therefore, they don’t have repayment options that are substantial. As the poor credit borrower, you have this all-win scenario in which you get your cash easily with no credit check.

                    The personal loan lenders generally make simple for the borrowers by giving adequate loan offers, to add to their own characteristics. Finding these lenders just isn’t hard now thanks to the Internet. As the borrower, that which it is possible to do is compare the rates of interest of different loan providers and to do a complete online research. Select just that lender who certainly will facilitate your fiscal compulsions and is supplying immediate personal loans on acceptable interest rates.

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