There are various channels one can obtain a loan from, ranging from financial institutions, licensed moneylenders and even via business or partnership agreements, depending on your needs and purpose in borrowing money.
In this article, we outline some of the things you can look out for to find the perfect money loan in Singapore to suit your needs.
Borrowing from a licensed source
With the rise of online scams in recent times, you can never be too careful about checking the source of where your loan comes from. Unlicensed moneylenders may sometimes pretend to be an authorised source, offering rates that seem too good to be true.
The Ministry of Law is the authority governing all moneylenders in Singapore. To check if a company is registered and legal, you may visit the Ministry of Law’s website to find the list of licensed moneylenders.
Borrowing from an unlicensed moneylender is against the law, and more often than not, these moneylenders have exorbitant fees that you may not be well aware of, since they are not regulated. If something looks too good to be true, be sure to do a double-take. Sometimes the best credit moneylenders are not what they seem.
Understanding your own needs
Some important things to consider before taking a loan are such as the uses for the capital and how immediate your needs are. The advent of technology has also made it such that online loans are now easily available, at any time, anywhere, so there is no need to rush to apply for one.
Business loans usually allow you to take out a larger sum than personal loans, but this depends on the size of your business. Many people use these types of loans for working capital or other re-financing purposes. The loan tenure for business loans also varies.
Before applying for a working capital loan, businesses should consider the different eligibility criteria of different financial institutions such as banks and moneylenders. Criteria such as your company revenue and history may be taken into account depending on which financial institution you borrow from.
The most common type of loan also includes personal loans, which are among the fastest to be approved. There are also many channels in which you may obtain such loans, such as via Grab’s new financing arm, via banks and even through moneylenders. Personal loans generally carry a smaller loan tenure and have a lower loan limit than business loans. Find out all about what you need to know when you apply for personal loans online.
Weighing your options
Whichever platform you choose to take out a loan from, always do ample homework to weigh out the odds. If you are going for online loans, be sure to look for some of the best credit moneylenders in the market. Each one has its own repayment terms which should be carefully evaluated as debts can snowball if you miss the payment dates.
Banks are also another option you may consider when taking out a loan. Different banks have varying requirements, so make sure to do proper research or book an appointment with the bank of your choice so you have a full picture of what you are getting yourself into.
Additionally, there are also peer-to-peer (P2P) lending websites, which appear to be gaining in popularity in the past few years. P2P lending is the lending of money to individuals or businesses through online platforms. This allows an individual or company to obtain a loan from other individuals rather than borrowing traditionally from a bank. Such companies come under the regulation of the Monetary of Singapore (MAS).
To ensure a fast and easy experience at the bank, you should go prepared with a list of documents commonly required for taking out a loan. They include: NRIC, personal financial statement, proof of income, property valuation, personal/ company liabilities. These requirements vary from place to place, so having them on hand before applying for a loan can speed up the process of getting your loan approved.
Taking out a money loan in Singapore can be relatively easy and as quick as a few hours to a few days. You should never rush into deciding and always make sure to check the terms and conditions carefully before applying for one.