Singapore is one of the world’s most expensive cities to live in and raise a family. As the Covid-instigated economic downturn begins to bite, more Singaporeans are struggling to keep their heads above water. Fortunately, licensed money lending companies are helping many to bridge the gap.
Of course, there’s also the option of taking a loan from the bank. But the question is, how fast can you obtain the loan from them? In tricky times like this, the option of a licensed money lender is surely something to consider – they are swift in loan approval, unlike the banks.
There’s a comprehensive list of money lenders which operate in Singapore. If you’re in search for a one-stop solution offering a range of reliable and competitive loan solutions, Galaxy Credit is your answer. But before you decide on the best one for your financial needs, here are 5 tips you need to know before choosing a reliable licensed money lender in Singapore.
- Credibility of the License and the Money Lender’s Experience
The first thing to do is to verify the authenticity of the money lender’s license. Then, you have to be certain that they are among the list of money lenders licensed by the Singapore government. A government-licensed money lender must have met all the requirements set by the government. This way, in the case of any dispute, you can easily report them to the authorities, and you’ll easily be attended to.
Also, note that the authorities can only attend to issues involving money lenders in their database. Secondly, there’s a need to ascertain the experience level of the licensed money lending company involved. Here’s a simple process for these.
- Request for the proof of license given by the Singaporean government
- To ascertain the level of their experience, conduct thorough research on the licensed money lending company. Go through their website or social media account, and look for customers’ reviews or comments.
- Don’t be afraid to ask any questions and don’t ever assume.
- Terms and Policies of the Licensed Money Lender
Before going into agreement with any party, it’s very important to go through the terms and conditions of the contract. This is where the company will state the loan amount, the interest rate, and the repayment plan. Go through the contract thoroughly, and check whether it suits your needs.
Ensure you can pay back the money with the interest rate within the specified period. If it seems like a stretch, it’s advisable to look somewhere else. Do also confirm that the interest rate will not increase at some point. Some companies mask as low-interest money lenders, with their interest rates rising at some point.
- Eligibility and Approval Process
The next thing to do is to check whether you’re fully eligible to apply for a loan. Most licensed money lending companies in Singapore have similar requirements, so don’t get mixed up with each of their terms and rules. Ensure that you understand each company’s requirements before you select the ideal one for you.
Next, go through the approval process. Assuming you’re in an urgent situation, you’ll need instant approval. Though most licensed money lenders in Singapore grant instant or quick loans, it’s still not advisable to rush into it. Don’t make impromptu decisions. Only borrow when you need it and when you’re sure you can pay it back within the stated repayment period.
- Flexibility of Loan Repayment
When choosing a licensed money lender, it’s crucial to consider the flexibility of the repayment plan. How fast can you pay up? Can you even pay up considering the interest rates? This is where you set the repayment schedule.
Be honest, and set your record straight with your licensed money lender. Come to a common ground that will benefit both parties before you sign up for their loan plan. We suggest having an honest discussion with your money lender about your ability to make repayments so they may best advise you on how to schedule them. It’s worth noting that when calculating your ability to make your repayments, you shouldn’t just be looking at your monthly income as your final determinant. Make sure you factor in–as accurately as possible–your monthly expenses.
- Compare and Choose the Best Money Lender
Based on the points listed above, draw up a list of the licensed money lending companies in Singapore which suit your needs. Consider the loan amount, the interest rates, and the repayment plan – and you’re all set to go!