Deciding which money lenders in Singapore are best suited to your borrowing needs can be difficult. This is especially true if you’re a foreigner or first-time borrower new to the loan process, or if you have a low credit rating and are worried about being turned down for a loan.
Under rights reserved by each individual moneylender, bank or financial institution, the terms and conditions, interest rates and eligibility requirements of each loan will always vary. This means that shopping around is always important – as is staying safe and avoiding dubious loan sharks at all costs.
By choosing a private money lender Singapore, you can ensure that you’re dealing with a trusted, licensed moneylender that’s properly registered with the Ministry of Law. What’s more, it’s super-easy to find low interest rate loan deals regardless of your credit score and financial situation. Let’s take a closer look at why you should choose a private money lender Singapore for your next loan.
From faster loan application times to longer-lasting low interest rates, there are a number of reasons borrowers should approach private lenders for their money lending needs instead of more traditional banks or financial institutions.
Let’s take a look at the top 10 reasons customers might want to seek financial help from private lenders:
Whether you need a fast cash loan with bad credit, a quick payday loan or a business loan package suitable for a company that’s only been in operation for one year, licensed money lenders in Singapore tend to offer a straightforward loan process with looser eligibility requirements than banks.
Fast approval of loan application and quick cash disbursement
If you need a payday loan, personal loan, debt consolidation loan, money loans or any other type of loan to be approved quickly, licensed moneylender companies are the place to go. You can usually get a loan application approval and full cash disbursement within 24 hours or less.
High credit rating is not necessarily required
Customers with bad credit are much more likely to be approved for money loans with private lenders than if they were to approach banks or more conservative institutions. Expect looser credit checks and less critical loan contract terms.
Fixed interest rate
High interest rates are rarely a problem with a private money lender loan. What’s more, customers can usually lock-in favourable interest rates for longer periods of time under rights reserved by their desired lender – and licensed lenders can’t charge a higher percentage than 4 per month.
Higher loan amount
If you need to borrow a high loan amount, a licensed lender is much more likely to grant you a loan package that will account for this – potentially up to 6 times’ your monthly income. Regardless of your credit rating, there are always cash loans available that can be tailored to meet your needs.
Private lenders are well-known for being much more flexible than institutional lenders. This means looser terms, fully customizable loan plans and much more.
No collateral required
Being able to get a personal loan, renovation loan or other loan type without having any collateral is a big bonus. This places much less risk on you as a borrower and ensures you won’t lose any assets if things go pear-shaped with any loans.
Transparent with no hidden payment fees or charges
Everything you need to know about what to expect from licensed money lenders in Singapore is right there on the Registry of Moneylenders’ website – so you know exactly what to expect. This means no surprise fees or charges that deviate from the regulations covering these types of loans.
No early repayment fee
Again, customers get complete transparency around all administrative fee procedures. Borrowers can usually expect to incur no fees in the event they decide to repay their loan early – but this could vary depending on the terms and conditions of the individual lender, so make sure you always check.
Help build up your credit score
Taking out a cash loan in Singapore with a private money lender can be a great way to build up credit If you need to improve your credit score. In fact, it’s one of the best credit solutions out there – simply stick to your agreed repayment plan and your credit will gradually improve over the course of the loan.
What are private licensed money lenders in Singapore?
Put simply, private licensed moneylender companies are trusted moneylenders in Singapore that cannot be categorized as banks or traditional financial institutions. They act as money lending companies in their own right, offering loan and credit solutions with low interest rates to customers who need personal loans, cash loans, payday loans or other loan products.
Under strict laws here in Singapore, each and every private money lender Singapore must be properly licensed with the Registry of Moneylenders and have their name exhibited here. This means borrowers can expect fair fees and interest rates when they seek financial help – but more on this later.
Who regulates the private lenders in Singapore?
As we briefly mentioned earlier, all trusted money lenders in Singapore are licensed by the Ministry of Law, which keeps a comprehensive list of all licensed money lenders in Singapore here if ever you are unsure whether the organization you are dealing with is 100% legitimate.
On top of this, lenders must follow strict rules and regulations laid out by the Registry of Moneylenders here. These rules ensure that clients can expect fair interest rates, payment fees and loan contract terms whenever they choose a proper private money lender for their loan in Singapore.
Licensed lenders in Singapore differ from more traditional financial institutions, like banks for example, in many different ways. The key differences, are:
Loan process and approval times
While getting a loan from a bank could take you anywhere up to one month, a licensed money lender can usually grant a fast cash loan in 24 hours or less – making moneylender companies a much faster option.
This is partly because not so many documents have to be presented or verified by the money lender during the loan process, and partly due to excellent customer service and largely online loan approval processes. Naturally, this makes private money lenders a great choice for anyone who needs fast cash.
At first glance, it might appear that traditional banks and lenders offer better low interest deals, but this isn’t necessarily always the case.
Low interest rates offered by banks are usually only fixed for one to two years, whereas interest rates offered by licensed moneylenders in Singapore often lock clients in for several years – providing greater certainty for borrowers. They’re also subject to a maximum interest rate percentage cap of 4 per month.
Credit checks and credit history evaluation
Credit will always be important when getting a loan – and higher credit scores often land clients better deals when looking for a personal loan, business loan or other type of loan. That said, private money lenders in Singapore will often be more lenient toward borrowers who have low credit ratings. This is because money lenders’ loan contract terms and background checks aren’t usually as stringent as those used by banks – making it more likely that borrowers with poor credit will get a loan approval.
Singapore money lenders often advertise specialist loan packages for borrowers with bad credit – and many also offer fast cash payday loans with softer checks to Singaporeans who need quick approvals.
Borrower safety and security
Under rights reserved by more traditional banks and financial institutions, borrowers might need collateral in order to get a basic personal loan or money loan approved. This means more risk on the borrowers’ part – as you could be at risk of losing your assets if you default on payments. In contrast, licensed and private money lenders are often more likely to disburse funds without collateral, as their loans tend to be more dependent on other factors, such as your unique financial circumstances and ability to stick to an agreed repayment schedule.
In addition, you also benefit from the peace of mind of knowing that your moneylender is fully registered with the Ministry of Law and is 100% safe and secure. Any legitimate, licensed money lender should be clearly listed on the Registry of Moneylenders here.
Loan amount or quantum
With private money lenders in Singapore, it’s not uncommon for clients to receive approval on personal loans of up to 6 times’ their monthly income, or business loan deals up to $200,000.
In contrast, however, more traditional financial institutions might not be so lenient in terms of the maximum loan amount they are willing to offer. This will always depend on your unique needs and circumstances, as well as the lender’s assessment of you. That said, there’s always a good chance you’ll be able to borrow more from a private moneylender.
Taking out a loan in Singapore can be complex and confusing – so why add to the stress by approaching conservative lenders that might turn you down during your time of need?
Here at Raffles Credit, we act as a private money lender offering personal loan, business loan, foreigner loan, monthly loan and payday loan with great interest rates to customers of all shapes and sizes, regardless of your credit rating, financial history or unique borrowing needs.
Apply for a loan with Raffles Credit today and find out how we can help you. Still unsure? Check out our comprehensive customer reviews from all across Singapore to find out what hundreds of happy customers have to say about Raffles Credit.