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17 myths about the moneylending services in Singapore - #1 Loan Directory in Singapore | Loan Singapore

17 myths about the moneylending services in Singapore

17 myths about the moneylending services in Singapore

There are various myths about the money lenders in the market, but are these true? They are called as a real business person, but do they take their clients for granted?

Yes, the money lenders are in the market to make money like every other business person. But the best possible thing with them is they never do business on the stake of their clients. As they do know the value of them because if they spoil them, then who will be available to give them value in the market. Who will do business with them? Let’s discuss some of the popular myths in the market about them:


  1. Seriously, I am confused about whom to pick?

 As there are many players in the market and everyone is ready to provide you the similar facilities. But it is totally up to you to research on them well and then go forward for the best one. Never land on the first one does compare and research based on the factors that matter to you and then take a decision.


  1. How do I know, am taking the loan from the best in the town?

With the invention of the internet, everybody seems to be one in a while and nobody has left apart. For better results, you can check the websites of the money lenders singapore and also the reviews of them on various forums and platforms. And then decide as the people who are happy have must have given them good reviews while the others who doesn’t seem to leave with a good impact will definitely warn you before. You can check the various products and services they are offering and pick the one that best suits your requirements.


  1. What makes a reliable money lender?

 As there are many money lenders which will try to allure you from many enticing offers but for taking the decision you need to find the one that will best suit you? Believe us it will not be an easy process. Do look for a licensed money lender as they will able to offer you the best services in the town as per the compliances of the Singapore government too.


  1. What should I look out if the moneylender is an unlicensed one?

 We will not suggest you go forward with an unlicensed one as it can have the adverse effect for you as well. First of all, you need to cater and recognize the money lender as you can be confused, so do not go on talks just look forward to the one that has all the paperwork at the place. Do not sign on any blank paper or cheques as it can end up harming you as well.


  1. How do I classify between licensed and unlicensed one:

If you are looking forward to a classification then do take care of the few things for your interests never hand over your original documents to any agency. As if they are the licensed they will make a copy, but will never keep your originals with them. And the licensed money lender only requires your NRIC card to be displayed rather than any other documents. Think twice before submitting your originals. Do not come in any shady talks.


  1. What are the kinds of money lenders in Singapore? Are all of them “Ah Longs”?

 No, they are not, there are two types of money lenders in Singapore and that is licensed and unlicensed one. If you want to look for the licensed one, then the best and authentic resource will be to go to the website of Registry of Moneylenders in Singapore and look for the list as they keep on updating them monthly. So, do have a look at the same and carry forward your actions as suits you.


  1. Are there different Kinds of loans in Singapore?

 Yes, there are two types of loans and i.e. Secured and Unsecured ones. The difference between them the secured requires a collateral property to settle, whereas the unsecured doesn’t have any provision like the same.


  1. What are unsecured loans, actually?

 Unsecured loans are like the personal loans from money lenders or Payday loans. The unsecured loans are the amount borrowed and lent it in the absence of assets. For the lenders, the only recourse is to go for initial legal proceedings for the defaulters.


  1. What are the advantages and disadvantages of the unsecured loans?

 The advantages of the unsecured loans are they do not have any risk attached to your assets. They are much faster to process. And if we talk about the disadvantages then we will know that they come at a higher rate than secured loans. They have strict repayment period, which is not flexible too.  They have limitations to the amount of money that can be borrowed.


  1. What is a secured loan, actually?

Not every asset is a valuable one. But yes the precious jeweler, watches, etc. can be the lender to have money instead of they are also known as the pledge. They are also the sources to lend a large amount of money to the borrowers. As the banks will not approve the loan unless the credit rating is good. But you can surely opt for a secured loan if it is not good too.


  1. What are the advantages and disadvantages linked to secured loans?

They have lower interest rates as the risk is lower and can loan hefty amount in ago also are some of the advantages linked to the secured loans. If we talk about the disadvantages of secured loans, then the worst part with them is their process is very long. They take a long time to initiate the process with the asset valuation. The bank has the right to seize your property if you could not able to pay for the loans. And the assets on which the loan can be taken are also very limited.


  1. Why should I consider buying a land over the loan?

The assets like land and flat or home appreciate with time. Like if you are buying an asset for 100,000SGD, then within ten years it will become 120,000 SGD but your invested amount will be much lower than you thought of and appreciates by 2% every year.


  1. I currently live with my parents, renting my house. Why I still want a loan?

If in any case you are looking forward to buy another home, you can mortgage your first home and the loan repayment can be taken care by the monthly income from the rent. And if your second home is in a good location then you can have an income much more than you are paying for mortgaging.


  1. Why would I take a loan when I earn enough?

Congrats!!!! If you are doing well. But it is never advised to break your savings to buy the assets, so if you are looking for one. Don’t go for the same. If you are looking forward to buy an asset evaluate them and then look forward.


  1. What possible situations in the market can drive you to take loans?

Sometimes market declines due to various reasons. So, if you could take the advantage and have the loan to a lower interest than it surely helps you in the long run.


  1. What kind of emergencies that you can be in that will press you to take up a loan in the first place?

 It can be any like you need to buy a car, home or any asset, then you can consider taking up the loan in spite of cancelling your savings.


  1. Why do I take the loan when I am not financially inadequate?

In being different circumstances also you can apply for the loans. It’s not just the financial requirement only that you should go forward. The reason to go for loans doesn’t need to do anything with your financial status as well.