Taking a loan from a bank may not be simple and at times you need an urgent loan with quick approval time to address an emergency expense. Unsecured personal loans fromlegal money lenders in Singapore may be the very best alternative in certain scenarios.
Some customers may perhaps have financial needs for a renovation loan, school fees, emergency medical fees, vacations or some unanticipated incidents whichrequire urgent financial needs.
Securing A Personal Loan from a legal and licensed Money Lender InSingapore
In advance of taking a personal loanfrom a licensed money lender, we suggest you to study more about the Money Lenders Act in Singapore. As a borrower, you rightsare looked after under the law in Singapore– have a look at this guide to borrowing moneyfrom money lenders in Singapore prior to taking a personalloan.
New Regulations For Money Lenders In Singapore (Effective Oct 2015).
New regulations for money lenders are added to tone down a borrower’s borrowing cost (interest rate) and also to manage the number of default payments. As aconsumer, it is advisable foryou to find out the details about administrative fees, contractual terms which are unfair to you, unprofessional andunfair money lending practices and the interest rates for your money lending contract.
The new regulations specifies a cap of 10% maximum upfrontadministrative fees, 4% maximum nominal interest rate (NIR) eachmonth, 4% maximum late interest rate per month, loan payment late fees being capped at$60 per month, no other additional fees allowed to be charged by any money lender and acap on borrowing cost.
Considering A Money Lender In Singapore.
Before you take a personal loan from a money lender, always make sure that the money lender is licensed in Singapore. Once you haveshortlisted a list of money lenders, do your due diligence and check out themoney lender’s reviews online.
Making an application for A Personal Loan With a Money Lender.
You have to be hired and you will be required to provide your last 15 months of CPF contribution historystatements together with your NRIC and the lastest pay slipsif relevant.
Unsecured Personal Loans.
According to the Singapore Money Lenders Act, for unsecuredpersonal loans, you can borrow:.
Up to $3,000, if your annual income is less than $20,000;.
Up to 2 months’ income, if your annual income is $20,000 and above but less than $30,000;.
Up to 4 months’ income, if your annual income is $30,000 and above but less than $120,000;and.
Any amount, if your annual payis $120,000 and above.
Please do not over-stretch your finances and undertake a loan which you can not servicelater. Always exercise prudence.