If you are in dire need of cash and you do not want to keep on bothering your family members and friends, what can you do? Worry not! Singapore licensed moneylenders and banks have got your back. Although friends and family may not be asking for much in terms of credit records and interest rates, you may not get the much you want, not unless they are in the business of splashing money. On the contrary, money from banks and licensed moneylenders requires more than just an application.
Before rushing to the bank or a Singapore licensed money lender for a personal loan, here are a few things you need to know:
What’s a Personal Loan?
A personal loan is an unsecured loan facility that can be used to finance several unexpected financial situations such as; utility bills, medical bills, car repair, home improvement, school fees, boost business cash flow, unexpected travel expenses, and so forth.
All Singaporeans, permanent residents, and foreigners qualify for personal loans though requirements differ for each category. Also, there is a cap on the minimum annual salary which also depends on the category you are in? The minimum age is 21 years while the maximum age is 65 years for all categories.
Most Singapore licenses money lenders offer personalized loans. They base their decision on the customer’s need and ability to pay. On the contrary, banks apply some capping on the same as they operate under strict regulations such as credit score put by the central bank. xn--ln-pengar-52a.se/smslan-med-betalningsanmarkning/
Loan tern also referred to as loan tenure is the duration that a loan takes before completion. For a personal loan, the duration ranges from one to seven years depending on the customer’s ability to pay. The longer the duration the higher the cumulative interest paid and the smaller the duration the lower the cumulative interest.
There is a little bit of some jargon revolving around interest calculations. Most lenders will confuse you with terms such as (AIR) Applied interest rates and (EIR) Effective Interest Rate. Note! EIR is more accurate as it is a true reflection of the total cost of borrowing. It takes into consideration other charges such as processing fees which in most cases is considered as a hidden charge. Interest rates differ from one lender to the other. This depends on who you are, how much you are borrowing, and for how long you are borrowing.
How to Apply
If you are a first-timer, at least you need to have the following documents:
• Photocopy of your NRIC (both sides) for Singaporeans or PR and a valid passport and employment pass with 6 months validity for foreigners.
• Proof of income
For salaried, you need your latest e-statement, or your CPF contribution statement for the last 12 months, or your latest income tax notice of assessment.
For self-employed, you’ll need your latest two years income tax notice of assessment.
Note: For a fast loan approval process, look for a reputable Singapore Licensed Money Lenders. This is where you’ll get customized loans, quick turnaround time, simple loan application processes, and favorable interest rates.