When an unexpected event or emergency occurs, you may have to apply for a loan to tide you over. Out of all the available options, the quickest and easiest way to get a personal loan in Singapore is to approach a licensed moneylender for an unsecured loan.
Despite being relatively less known compared to banks, the money lending industry is well-regulated in Singapore, and moneylenders are held to professional standards. Borrowers from all backgrounds and income levels are welcome to apply for a loan —reliable moneylenders are willing to work out the best loan packages according to different needs and circumstances. This means that even lower income earners can get loans.
How easy is applying for an unsecured loan from a licensed moneylender, you ask? Well, all you need to do is to follow these simple steps.
1. Work out how much you need
Firstly, work out how much you need to borrow. Try to borrow only what you need, and not more. This is important because the larger your loan, the more interest you have to pay in total – this results in a higher cost of borrowing.
Larger loans are also more difficult to manage, and you may need a longer loan tenure to pay off your loan. This will, again, result in more interest being paid by the end.
Never borrowing more than you need is especially important when using personal unsecured loans from licensed moneylenders.
This is because they are allowed to charge interest of up to 4% per month, which may sound minor but adds up to a significant amount over time.
2. Search for a reputable moneylender
Once you’ve worked out exactly how much you need to borrow for your loan in Singapore, it’s time to look for a reputable moneylender.
You will likely encounter many operators offering unsecured loans, but unfortunately, not all of them will be the right fit for you. You may even come across illegal or unlicensed lenders – often via unsolicited SMSes or social media messages – and you should stay far away from them.
Spend some time looking through ratings and reviews of licensed moneylenders near you; Google is a good place to start. Look for providers that are consistently highly rated, and view the reviews given by other customers.
Doing this will help you suss out reputable money lenders with a track record of offering good service to those looking for loans in Singapore.
3. Submit your loan application online
Once you’ve narrowed down the licensed moneylender from which you will apply for a loan, you can go ahead and submit your loan application online – which can be easily done on most moneylenders’ websites.
This will inform the moneylender of your interest in taking a loan and kickstart the loan application process.
In response, a licensed moneylender will get in touch with a loan offer, and more importantly, inform you about the terms and conditions of the loan.
You should pay attention here, as you will be receiving important information such as:
- The interest charged on the unsecured loan, which may be up to 4% per month
- The tenure of the loan, or how long you can take to repay your loan
- Admin fee, late interest charge, and any other fees and charges
- How soon can you receive the funds
You should consider the loan offer – along with its terms and conditions – carefully before deciding whether to accept the loan or not.
Note that a loan offer is just that, an offer. You do not have to accept the loan if you do not find the terms acceptable and can walk away at any time.
4. Sign the loan contract in person
Assuming that you find the loan terms acceptable and wish to proceed with the loan, you can do so by paying a visit to your moneylender’s premise.
Licensed moneylenders are required by law to explain the loan terms and conditions to the borrowers. All details of the loan must also be recorded in a loan contract, which must be signed by both parties in person.
Hence, while you may apply for a loan through a moneylender’s website, you are not bound to any loan offers – until you have signed the loan contract at the moneylender’s office.
5. Receive your funds in cash or direct deposit to a bank account
Once you’ve understood the loan terms and conditions, and signed the loan contract, all that’s left to do is to wait to receive your loan.
Licensed moneylenders are able to move quickly once all the paperwork has been settled, and are often able to disburse your loan on the spot. You can choose to receive your loan in cash or request for the funds to be directly deposited into a bank account registered to you.
Use personal loans responsibly
After applying for your loan and receiving the funds you need, you should focus on paying off your loan.
Note down your loan instalment due dates and strive to make your repayments on time. Otherwise, you will incur late fees and late interest charges, which will hamper your efforts to clear your debt.
If possible, consider making a larger repayment from time to time to accelerate paying off your loan. But if not, don’t worry too much about it – just be sure to meet each monthly instalment.
Synergy Credit is a leading provider of personal loans in Singapore with flexible terms and favourable interest rates. Our online loan approval takes 20 minutes or less, and we strive to offer same-day loan disbursal in all eligible cases. Contact us today to discuss the ideal loan package for you.
