Best Licensed Moneylenders Guide to Borrowing Personal Loans from Legal Moneylenders

 

Are you looking for a licensed moneylender? Then you’ve come to the right place! Our guide to borrowing can help you.

Many people in Singapore face financial difficulties. Life has the habit of taking you – and your savings account – by surprise. For example, you might need a larger down payment for your HDB flat, for your post-operative medical equipment or for your children’s tuition fees. On the other hand, you might decide it’s finally time to visit Japan or purchase bikes for the whole family.

That’s why licensed moneylenders exist. They are able to lend you a personal loan within hours! To enjoy their resource, you can apply for a fast cash loan here.

But, here’s the problem:

There are almost infinite loan packages and solutions, plus you have to understand the legal slang. This translates into hours of research that you can avoid by reading this article.

We’ll unravel all the issues to consider before taking the loan, eligibility conditions, and loan sharks. We’ll also discuss the best licensed moneylenders in Singapore that can help if anything goes wrong.

These licensed moneylenders can be found all over Singapore. From Jurong to Tanjong Pagar to Toa Payoh and Bedok.

What Do You Need To Do Before Borrowing From A Legal Moneylender? 

Before borrowing from a legal moneylender, you have to:

·         Consider any government schemes that might suit you as an alternative

·         Shortlist several moneylenders to ensure you’re getting the best value

·         Read the contract thoroughly

·         Make sure you understand the legal requirements

·         Ensure you can make diligent repayments

Those are MinLaw’s advice to get a good loan. What about the best loan for your needs?

Here’s what to consider:

Decide On The Type Of Loan You Need

The array of personal loan options seems limitless. 

Let’s see what a personal loan is first.

Some licensed moneylenders use the term for any sum you borrow for personal reasons as opposed to business reasons. So they diversify their choice according to your needs to include:

·         Renovation loans

·         Education loans

·         Car loans

·         Home loans

·         Medical loans

·         Wedding loans

·         Payday loans

·         Emergency loans

Some options –payday or emergency loans included – feature smaller principal amounts than others. By comparison, larger ones like wedding loans have longer tenures. Some massive loans may even require collateral to secure them against. We all know that events such as weddings cost a lot of money on the little red dot.

So depending on your goals, income level, and budget, you have to choose between:

·         Unsecured loans (no collateral needed)

·         Secured loans (collateral needed)

But there’s another catch.

Genuine personal loans – aka personal installment loans – have the advantage of flexibility, which means you can use the money for everything you want without explanations. Conversely, customised loans like education loans can only be used for books, tuition, and other things directly related to your studies. 

The choice can seem a no-brainer because, of course, you want that flexibility.

However, customised loans usually have lower interest rates and longer tenures. The reason is that your licensed moneylender sees you’re working towards an objective, which makes you a more trustworthy client.

So the ultimate choice boils down to versatility vs affordability.

 

What Is A Credit Score And How Will It Affect Your Loan Application?

Your credit score is a rating based on your past financial history. It considers your spending habits, how diligently you’re paying your bills, how much debt you have compared to your income, and so forth.

If you have never taken any loan, it does not mean that you have a perfect credit score. As you do not have any previous transactions,  your credit score will be undetermined.

Risk grade and probability of default:

Credit score	Risk grade	Probability of default
		Min	Max
1911-2000	AA	0.00%	0.27%
1844-1910	BB	0.27%	0.67%
1825-1843	CC	0.67%	0.88%
1813-1824	DD	0.88%	1.03%
1782-1812	EE	1.03%	1.58%
1755-1781	FF	1.58%	2.28%
1724-1754	GG	2.28%	3.46%
1000-1723	HH	3.46%	100%

Source: Credit Bureau Singapore

Basically, if you’re an organised consumer living within your means, you probably have a high credit score. 

This score shows financial institutions that you’re not going to default on your payments, which means:

·         Access to more significant amounts

·         Lower interest

·         Longer tenures

The excellent news is licensed moneylenders in Singapore care less about your credit rating than banks do.  

Regardless of your credit history, you can easily get an immediate loan with them!