The long-term financial development of your family will be, unfortunately, strictly intertwined with the funds you have available at any given time. It’s a reality of our day. In order to make money, you will need to already possess the necessary funds for your ongoing ambitions, which can be a problem, as for most of us, savings are something of a distant dream.
Do you have ambitious plans, want to invest in new business opportunities, or are you looking to improve your loved one’s financial perspectives? In such a case, like most SG citizens, you should probably look for the financial services provided by a licensed money lender in Singapore. What’s a money lender? Well, it depends on what definition you want to use. But, at least in our country, private money lenders are specialized lending companies that can offer money directly to borrowers, without direct government intervention.
A private licensed money lender will benefit from faster approval times for the credit packages they commercialize, and the repayment terms for the provided loans will be more flexible than is the case with conventional banking institutions. This in turn makes their offers suitable for a greater group of people and allows even individuals with bad credit to access loan packages designed with specific repayment periods in mind.
How Is a Credit Company in Singapore Better than a Bank?
In the end, it’s all about speed and accessibility. Let’s say you are going through some bad times and you need some fast cash, with no question asked, that will last you till the end of the month. Typically, for the services of a conventional bank, your application will need to be reviewed manually by a loan officer and you should be present, physically, in the loan office for the actual contract agreement.
The whole process could take days, something that you most likely can’t really afford. A private credit company in Singapore will work much faster, and if your documentation is ok, your credit should be approved and disbursed into your account in less than one working day. Same-day approval is typical for the services of private lenders, and the financial services they offer are suitable for short-term financial needs. Do you simply require a monetary influx that you’re planning to repay on your next paycheck? Then, you could go for a payday loan.
Are you thinking of something more substantial? If so, there is probably no better choice than a personal loan that you can secure with collateral. The maximum interest rate applicable to the services of money lenders active in Singapore is limited by law, and borrowers benefit from protections not usually found in neighboring countries. So, you can rest assured that your well-being will be a priority.
How Common Are Private Lenders?
Currently, there are no less than 153 licensed money lenders active in Singapore, and their numbers have risen spectacularly in the last couple of years, simply due to the popularity of services provided by private and independent lending institutions. Private lenders are a solution for borrowers with low credit scores, the documentation required for their loans is less complicated, the financial packages offered on the market are flexible and the eligibility criteria are typically much less stringent than is the case for conventional banking institutions.
Do you earn more than $20,000 per month, are you over 21 years of age, your income is stable, your credit score is decent and are you a SG citizen? If so, your application would probably get accepted, with no extra conditions required. Private lenders specialize in short-term loans, and their services are preferred by the majority of Singaporeans due to their straightforwardness. Most lenders nowadays benefit from a private digital platform on which their services are presented.
Plus, for the vast majority of citizens, the application process for the credit package that interests them can be carried out fully online. With a reputable licensed money lender in Singapore, there are no in-office visits or unnecessary wait time. You simply need to submit your documents online, and in less than one day, your application will be either approved or rejected. It’s simple, straightforward, and much more efficient. Therefore, going for a credit company is the solution preferred by most residents of Singapore.
What Are Your Protections as a Borrower in Singapore?
Whether you are going for the services of a private credit company or an SG-based conventional bank, as per the regulations active in our nation, your rights as a borrower will stay pretty much the same. The maximum APR for the financial packages offered in SG cannot exceed 48%, or 4% per month, while the administration fee for the commercialized credit package cannot go over 10% of the loan principal. In other words, if you go, for example, for a payday loan with a reimbursement period of only one month, then legally speaking you cannot be forced to pay more than 14% extra on top of the sum you borrowed.
Borrowing limit is also regulated and dependent on your existing income. Do you earn less than $10,000 per year? In that case, according to SG law, you are only permitted to borrow up to $3,000 with an unsecured personal loan. Do you earn above $20,000? In such a scenario, you can borrow six times your current monthly wage. Moreover, if you can secure your loan application with guarantees, these income limits will be eliminated.
Finally, per the regulations laid out in the Moneylenders Act of 2008, borrowers have the right to leave their contract, with no financial sanctions permitted for a maximum of one week after signing it. Plus, the terms of the contract must be clear and transparent, while every repayment made to the lender must be accompanied by a receipt. In the end, the services of SG private lenders are safe, widely available, and transparent, which is why their popularity, at least in the last couple of years, has skyrocketed.
