What Makes a Money Lender Singapore Reliable?

There may be a hundred reasons that could make one person apply for a loan. It can be for the bills, school fees, repair expenses for your car, home renovation, and other emergencies. Whatever the reason may be, it is certain how money lending institutions are relevant during these situations.

As it is already difficult to look for the ideal loan the best suits your needs, it can be more time-consuming to look for that lender that can help you out. What’s worse is ensuring whether that lender you are aiming to take a loan from is reliable. To make things simpler, we have listed down pointers to consider whenever looking for a legal money lender.

What Makes a Money Lender Reliable?

You can guarantee that a money lender is reliable if it is licensed.

In Singapore, you can quickly determine if a lender is legal if it is listed from the website of the Ministry of Law. Remember that notwithstanding that the moneylenders are licensed, you have to be mindful if they:

Use abusive language, or behave in a threatening manner towards you.
Ask for your SingPass user ID and/or password.
Retain your NRIC card or any other personal ID documents (e.g. driver’s licence, passport, work permit, employment pass or ATM card).
Ask you to sign on a blank or incomplete Note of Contract for the loan.
Grant you a loan without giving you a copy of the Note of contract for the loan and/or without properly explaining to you all the terms and conditions.
Grant you a loan without exercising due diligence (e.g. approving a loan over the phone, SMS or email before even receiving your loan application form and supporting documents, such as the income tax assessment and payslips).
Withhold any part of your principal loan amount for any reason.

These practices are not acceptable. If you encounter them, you are urged to report the institution to the Registry of Moneylenders, with information such as its business name, license, contact numbers and address. You may reach them via 1800-2255-529.

A law-abiding lender is assured to be dependable.

Keep in mind that the Ministry of Law requires money lenders to explain the terms of a loan to you in a language you understand and to provide you with a copy of the loan contract. Make sure you fully understand the terms of the contract, in particular, the repayment schedule, the interest rate charged and the fees applicable.

The law requires moneylenders to explain the terms of a loan to you in a language you understand and to provide you with a copy of the loan contract. Make sure you fully understand the terms of the contract, in particular, the repayment schedule, the interest rate charged and the fees applicable.

It can also be noted that with effect from 1 October 2015, the maximum interest rate money lenders can charge a borrower is only at 4% per month. This cap applies regardless of the borrower’s income and whether the loan is an unsecured or secured loan. If a borrower fails to repay the loan on time, the maximum rate of late interest a moneylender can charge is 4% per month for each month the loan is repaid late. The computation of interest charged on the loan must be based on the amount of principal remaining after deducting from the original principal the total payments made by or on behalf of the borrower which are appropriated to the principal.

Moreover, all moneylenders are only permitted to impose the following charges and expenses:

a fee not exceeding $60 for each month of late repayment;
a fee not exceeding 10% of the principal of the loan when a loan is granted; and
legal costs ordered by the court for a successful claim by the moneylender for the recovery of the loan.

An institution can be well-grounded if it has personalized loan packages.

Every lender’s top priority is to serve for its borrowers, more importantly, effectively. Normally, deals are fixed but to meet a customer’s demand, it’s ideal for lenders to have customized packages that can best cater to their financial situations. This is important especially not all borrowers have the same financial capabilities and needs.

A solid reputation is proof of their good quality service.

If not well-known, money lenders must establish a great standing within the community for it to be trusted and reliable. This is why, somehow, it’s vital to choose institutions who have been in the business for a very long time. Primarily, because, it has already built an image.

Legitimate reviews from both experts and customers.

Through this, potential borrowers can easily determine where they can easily get a loan package from as they compare comments and suggestions from a bunch of people. This also enables them to figure out whichever is the most suitable deal to aid their financial worries.

Are All Licensed Money Lenders the Same?

No. Although all money lending companies abide by the Ministry of Law, what they offer are significantly different. There may be some institutions which provide a longer loan tenure or quicker loan approval than the other. Each institution could also vary from its application processes.

Raffles Credit, for example, guarantees that not all loan plans are created equal. What it actually offers is not just financial assistance but even a suitable plan according to a person’s need, budget, and capability, making them a wise and a responsible borrower.

It is also well-known for its three tough selling points which are:

Fast approval. Applications made with Raffles Credit can be easily approved within 30 minutes.
It also comes with no hidden fees, thus it’s assured you won’t be needing to spending double for extra charges.
A borrower can apply for a loan quickly as it only needs few requirements. This is to ensure all those who are worrying about their financial situation are being catered well enough.

One of the many deals provided by Raffles Credit is a personal loan. With a loan up to 6 times your monthly salary, the borrowed cash can surely help achieve your goals, such as your dream wedding, car, and little pleasures in between. As mentioned, a borrower can loan nearly up to six times their monthly income with no collateral needed. It is worth noting that applications are made hassle-free with no hidden charges and fees.

Singapore citizens, PR, and even foreign workers should take note of the following pros when deciding on taking out a personal loan with Raffles Credit:

You do not need collateral to take out a personal loan
You can borrow more than a credit card or overdraft
The repayment terms & amount is fixed each month, making it easy for you to budget
You can stretch out the repayment period, though the interest rate will likely increase as well
You can make a full or early repayment and even receive a discount on the interest rate

You should be aware of the following cons

You could be tempted to take out more than you need unlike a payday loan
The cash loan you receive is not a good way to consolidate your debts

Moreover, there are several factors that will determine how much you can borrow from Raffles Credit. If you are taking out a secured personal loan with Raffles Credit, you would be able to borrow a larger amount with Raffles Credit. However, if you are taking out an unsecured personal loan with Raffles Credit, there are several factors that determine the amount.

If you are a Singapore citizen or PR with an annual income of less than $20,000, you would only be able to borrow up to $3,000 with Raffles Credit. If your annual income exceeds $20,000, you would be able to take out a loan up to six times your monthly income with Raffles Credit.

If you are a foreigner or ex-pat working in Singapore with an annual income of less than $10,000, you would only be able to loan up to $500 with Raffles Credit. If you have an annual income of less than $20,000, you would be able to loan up to $3,000 with Raffles Credit. Foreigners or ex-pats with an annual income of $30,000 and above would be able to take out a loan up to six times of your monthly income with Raffles Credit.

How to Apply?

You must be at least 21 years old
For Singaporean/PR residents: You must have regular employment or a source of income above $2,000 per month
For Foreigners/Expats working in Singapore: You must have regular employment or a source of income above $3,000 per month

For Singaporean and/or Permanent Residents, you must present or have a:

A minimum income of $2000
An identity card / NRIC
Proof of residences such as a recent bill or letter addressed to you (only applicable if you do not own the residence)
Tenancy agreement (only applicable if you are renting a flat)
Recent three months payslip and employment letter if your current employment is less than 6 months
Know your SingPass (to log into CPF, HDB, IRAS website)

For Foreigners, you must present or have a:

A minimum income of $3000
A valid work permit / S Pass / Employment Pass
Passport
Proof of employment (staff pass or company pass)
Recent 3-month payslips & employment letter
Proof of residences such as a tenancy agreement, recent bill or letter addressed to you
Latest bank statement of account to which yearly or monthly salary is credited
Singpass (to download IRAS NOA)

Conclusion

Prior to choosing the loan you have been wanting to get, you have to understand a few things first. Note that these deals vary and you have to do your research to achieve a hassle-free application.

Understand that there are different kinds of loan options available from personal, business, equity, and auto loans. You must be knowledgeable of its differences so you can easily determine with one fits and suits your financial demands.

Borrowers are also encouraged to be mindful of the interest rates and other processing fees that they may encounter should they consider going to moneylenders. Knowing the duration of your loan as well as the down payment amount is also vital.

Thus, similarly, you must be keen in looking which lender is suitable for your needs which above all, is trustworthy too. Take note that Singapore law requires licensed moneylenders to explain the terms of your loan in a language clients can easily understand. Should one hands you a contract and refuses to explain the terms in the language that you understand, it’s very likely that you are dealing with a loan shark.

Rest assured, you are in good hands with Raffles Credit. To avail your personal loan: