Beware of Singapore loan sharks and their schemes!

Although licensed moneylenders in Singapore have been a good alternative to banks for personal loans, there are still many who borrow money from loan sharks despite several horror stories about their illegal ways of collecting payment.

Some of the terrifying experiences recounted by victims include harassment on social media and even setting fire to the borrower’s home!

 

What is a loan shark?

So, what exactly is a loan shark? Loan sharks are illegal lenders who often use threats to collect debts with extremely high interest rates. Most of them tend to target low-income and desperate individuals who are in need of immediate cash. 

Essentially, all licensed moneylenders should have a license number issued by the Ministry of Law. Those who are not authorized – loan sharks –  are basically breaking the law. 

The loan services offered by loan sharks are faster and easier compared to licensed moneylenders as they generally dodge legal formalities. Do not fall victim to these schemes as these entities are notorious for running frauds with unjustifiable charges.

 

Shadow of trapped male

How do they trick you?

 

1. You May Be Unable to Repay the Debt

Unlicensed moneylending involves sky-high interest rates. Licensed money lenders in Singapore will never offer personal loans with more than 4% in monthly interest rates. On the other hand, loan sharks can charge more than 10%.

A story involving a woman who needed to pay bills even had to pay $400 after missing the first week of payment. The unlicensed moneylender originally lent $250, which is more than a 50% interest rate in just seven days!

While the female victim had an agreement to pay $300 after one month, the loan still carried a 20% interest rate that’s higher than the 4% cap on loans from a licensed moneylender.

The scam usually happens through unsolicited phone calls, but fraudsters have become wise enough to avoid detection by using WhatsApp to victimize people.

 

2. Loan Sharks Make You Believe That You Don’t Have Other Options

Those who borrow from illegal money lenders in Singapore usually don’t have the necessary paperwork needed by banks or licensed lenders, or they simply need to get the money as fast as possible. 

Loan sharks capitalize on this by promising clients with personal loans that don’t require documents and can be disbursed immediately.

However, you should be aware of financial assistance programs by the government before thinking about borrowing money from a loan shark. 

Some banks and legitimate money lenders can now process a loan application and release the approved amount within 24 hours. 

If you don’t have the documents, a licensed money lender will be your best alternative.

Borrowers with poor credit scores are also inclined to borrow from loan sharks, but licensed lending companies also cater to this group of people.

 

A man thinking

3. Unlicensed Lenders Use All Sorts of Dirty Schemes

The scheming process of loan sharks evolves constantly. Watch out for those who ask you to sign up for a phone line and handset plan before approving your loan. 

These companies engage in this trick to let telephone companies do the work of chasing after you, in case of failure to repay the monthly instalments.

How does this work? The loan shark will ask you to sign a two-year contract with M1, Singtel or another company. 

Once approved, the lender will give money in exchange for the phone. Let’s say the phone from the contract costs $1,500. The loan shark will give $1,000 and you won’t have to repay them. Your responsibility now involves paying the telephone company.

There are several red flags from this scenario, but the most prominent one is the exchange of money for the phone. Some phone companies provide discounted mobile devices for their plans or even give them to customers for free. 

In other words, you’re paying money for something that’s not in your hands because you “sold” it to a loan shark.

Unlicensed lenders do this because they don’t want to bother chasing after clients who defaulted on small loans, which usually cost from $1,000 and $3,000. 

By asking the customer to sign up for a phone plan, they pass on the chore of hunting defaulters to telephone companies.

If you need to borrow $3,000, then the loan shark will ask you to sign a phone deal with a handset that’s worth the same as your desired loan amount.

Another shady tactic involves loans with the promise of buying gift cards. Customers will need to agree to buy a certain number of cards within a specific period.

If you borrowed $1,000 from a loan shark, you will have to agree on buying a $100 gift card each week for two months. The cards can be either common gift cards such as AliPay or those from the loan sharks themselves.

 

Shake hands

4. Loans Build Relationships With Clients

The Hari-Hari type of lending is just another yet milder version of unscrupulous lending money. The term means “daily” in Malay, which refers to the frequency of collecting payments from borrowers.

Loan sharks have become familiar with their clients through this scheme, as they see each other each day to collect the money.

People with low-income jobs are usually the clients of Hari-Hari lenders.

Both parties have a good-natured relationship because of the daily encounters, but loan sharks still won’t think twice of harassing their clients if they default on their loans. 

Most illegal money lenders who use the Hari-Hari system rarely fail to collect payments, possibly because the amount is small when divided into daily instalments.

The problem, however, lies in the accumulated interest payments that can last for several years. Some borrowers even pay 10 times the principal amount! 

The idea of being familiar on a personal level with their creditors becomes another problem, as they may feel embarrassed when they miss a single payment.

Imagine owing money to a close friend or family member and being unable to repay the loan. How would you feel about it?

 

5. No Paperwork Needed as a Hook

Those who borrow from loan sharks Singapore usually don’t have the necessary paperwork needed by banks or licensed lenders, or they simply need to get the money as fast as possible. Loan shark Singapore capitalize on this by promising clients with personal loans that don’t require documents and can be disbursed immediately.

However, you should be aware of financial assistance programs by the government before thinking about borrowing money from a loan shark. Some banks and legitimate money lenders can now process a loan application and release the approved amount within 24 hours. 

If you don’t have the documents, a licensed money lender will be your best alternative.

 

Example of loan shark harassment cases

 

#Case 1

7 Nov 2019 – A 30-year-old man has been arrested for his suspected involvement in loan-sharking harassment activities by setting fire on the doors of the units.

The police said they were alerted on Nov 5 to two separate cases of loan shark harassment at residential units along West Coast Road and Ang Mo Kio Avenue 5.

Source from : Channel News Asia

 

#Case 2

24 April 2020 – The police are now seeing a rising trend of unlicensed moneylenders using food delivery services to harass debtors.

In a statement on Wednesday, the police said that these illicit moneylenders would order large amounts of food or make multiple orders a day to be delivered to debtors’ homes, often late at night. Occasionally, the moneylenders would order the food to be delivered to debtors’ relatives.

The deliverymen would then request payment from the debtors or their relatives for the food.

Source from : The Strait Times

 

Loan Scam Tactics

 

#Case 1

23 October 2019 – $200 loan balloons to $65,000 after internet scam targets man in Singapore. 

The victim’s mother said her son was offered a loan $200 through an Internet scam some time ago. “Although he didn’t want it, the money was transferred into his bank account.

“He returned the money immediately after sensing something was wrong, but the loan sharks began harassing him.”

Suspected loan sharks poured petrol and set ablaze a woman’s gate,and it was chained with a padlock.

“There was a big paper note saying ‘Now you want to cheat my company money ah? Now you never contact me I will keep burning it”.

A video of her gate being set ablaze was sent to her daughter by the suspected loan sharks as a warning, where one of the two men could be heard saying in Tamil “burn it first”.

 

#Case 2

3 January 2020 – Between January and November 2019, at least 1,700 cases of loan scams were reported, with victims losing at least $6.8 million, said by the police said in a press conference.

They said these scams have possible links to unlicensed moneylending. The victims would typically receive a text message or WhatsApp message offering loan services.

The scammers would tell victims they have to pay a deposit sum and 7 per cent goods and services tax (GST) for the loan amount, before the loan can be approved to deceive the victims into believing they were dealing with a licensed moneylender.

Interested victims are told to transfer a sum of money as a deposit. However, after transferring the money, no loan would be disbursed.

On the other hand, when these victims declined to make the payments, the scammers would claim that the loans had already been approved and would demand a processing fee to cancel.

Another version of the scam involves perpetrators sending PDF documents, the victims received PDF document informing them the loan request had been processed, purportedly from the Ministry of Law (MinLaw) or Monetary Authority of Singapore (MAS), or both.

Source from : The New Paper

 

A man dialing to make a phone call

What should you do when faced with them?

If you or your family members find yourself being a victim of a loan shark harassment, worry not! There are existing laws that can be of help. 

The best resort to call is to the police at 999 or 1800-255-0000, or submit an online police report at www.police.gov.sg/iwitness.

The contacts below are also useful for loan-sharks related cases:

Do note that there are many existing voluntary welfare organisations for help in managing these debts. List as below:

These pages are a community with undisclosed identity determined to help victims of unlicensed money lending activities. Hence, they are able to be of great help in assisting legal advice.

 

It’s better to seek financial assistance from licensed lenders

Opting for financial help from licensed moneylenders is always the best choice. It is stated in the Singapore’s Moneylenders Act that no entity can run money-lending business in Singapore unless it is authorized by a license. 

So, having a license is crucial as this acts as a guarantee that the institution is abiding the law. In fact, the act helps to regulate the money-lending business as it provides protection for the borrowers in case there are any problems between the lender and the borrower.

There are several characteristics that make licensed moneylenders the best option for financial help such as their undeniable credibility, low-interest rates with no hidden charges, and also flexible terms and conditions. 

Any good money-lending institution should be able to give reasonable and negotiable terms to its borrowers.

 

Two businessmen

Who can you seek?

So now you might want to know the licensed moneylenders operating in Singapore. Don’t worry, we’ve got you covered! This is a list of all the moneylenders in Singapore which is authorized by the Ministry of Law: List of Valid Moneylenders in The Republic of Singapore (last updated 1 April 2020)

However, we do recommend that you want to check out Bugis Credit. Being known as the most reliable licensed moneylender in Singapore, Bugis Credit offers a reliable and fast way to take out a loan with no hidden fees and flexible repayments.

 

Conclusion

A licensed money lender should be your first option for borrowing money instead of looking for a loan shark. Although Singapore has tough rules to deter unscrupulous lenders, some companies and individuals still ignore these regulations since they know a lot of people need money urgently. 

Don’t let your money problems become bigger by choosing a loan shark. Call us today and find out more about our services.

9 Best Ways to Earn Extra Income in Singapore (2020)

Are you constantly living from paycheck to paycheck? Asking yourself how to earn more money in Singapore? Perhaps you’re asking how to earn money online, hearing that its where all the money is made these days? 

The gig economy has been flourishing in recent years thanks to the advent of social media and the Internet. People are thriving with constant earnings from a part-time job or a side business.

While there are lots of jobs to choose from to make a side income, some of us want to earn extra in less time. Here are nine simple ways to earn money even with a full-time job. Some of them can even turn a profit of up to $3,000 in just one weekend!

 

lady photographer

1. Take Out Your Camera and Learn Photography

Those who are fond of snapping photos and love taking them from different angles should consider a part-time job as a photographer.

The pay varies depending on your experience and type of photos. Novice photographers can get at least $5 to $10 per project for passport-size pictures. Photo-editing services start at $0.5 per photo for beginners.

Headshots are more lucrative with prices ranging up to $100 per project, and that’s just for newbie photographers. Amateur photographers usually charge at least $100 per hour for photoshoots and $150 per day to work as an assistant. Once you establish a loyal customer base, you can take part in the wedding photography business. Professionals in this field earn up to $3,000 per project. If you like to teach, you can charge up to $500 per student.

Another easy way to produce extra cash in a short time requires you to sign up for photography contests. Make sure you have the best photos in your portfolio and earn up to $2,500 for each competition.

 

 

2. Get a License as a Personal Trainer

Gym enthusiasts might as well profit from the time they spend at fitness centers. You can apply as a personal trainer during weekends when demand seems to be higher and therefore have more need for trainers. You don’t need to have a perfectly sculpted body to become a legitimate trainer, but it helps to maintain a good physique. There’s no better way to achieve this than to hit the gym and make money at the same time.

Personal trainers earn between $75 and $150 per hour. If you work at least four hours per day during weekends, you can earn up to $1,200 in a month or even more when you work on holidays. You must have a Certified Personal Trainer qualification before you can accept clients. Other certifications can improve your competency and your professional fee.

 

Ladies taking selfie

3. Be a Freelance Tour Guide

A tourist guide probably has more consistency in making money than other side gigs, due to the steady flow of tourists from around the world. Millions of foreigners visit the country each year with the number sometimes exceeding more than three times the local population.

You should have an extensive experience in staying at different places in Singapore to boost your qualifications, which can include expertise on the best dining spots and shopping centers across the mainland. Freelance tour guides earn from $80 to $150 per hour. Anyone can become a tour guide with the right attitude, personality and knowledge on as many things as possible about Singapore.

 

4. Get Rid of Your Old Items

Carousell is one of the places for owners to eliminate old items and exchange them for cash. The amount that you can earn depends on the value of items. The general rule for this: the harder it is to find an item anywhere, the higher the price tag. Limited-edition books, vintage electronics and collector’s items are some of the examples of rare products.

You can even sell your car in Carousell, which can turn into a sizable profit if you set the right price. Online sellers should expect buyers to haggle on the listed price, so the best way to make money will involve a price markup before selling the item to offset a likely lower price offered by customers.

 

Men and Ladies

5. Practice Your Public Speaking Skills

Do you always volunteer to be the emcee for special occasions like weddings and birthdays? An event host can produce an extra money from $100 per hour, which can easily turn into thousands if you accept multiple gigs in a month. Some experienced emcees even earn five-figure salaries just by getting on the stage and speaking in front of a large audience.

This type of side hustle works best for people who aren’t shy. Those who are just starting their freelance stint as a host can charge a lower rate, possibly $50 for two hours. You can market yourself to more events (not just birthdays or weddings) and build a wider network to get extra cash besides your steady income.

What You Should Do Before Choosing a Side Gig:

Build a strong online presence to reach your target audience. Social media accounts will be your best resources for advertising your services. Don’t expect to earn a lot in your first month, as your rate gradually increases once you have more connections and clients.

The larger you grow, there are more opportunities for you in the space to get an income.

You should also maintain a website to make it easier for potential clients to see your portfolio, especially if you plan to be a photographer or events host. If you’re having trouble with finding clients, you can start by asking friends to refer you to their connections. You shouldn’t offer your service for free when you’re particularly good at it.

 

Cheerful man giving parcel to client

6. You can Drive Around and Actually Earn Some Bucks

Specifically, being a freelance parcel carrier is possible now. As such, courier companies are seeking for individuals in particular areas to help send off mails and items to customers.

It is as simple as just having a well-maintained car or motorcycle to get to from the post offices or courier warehouses in your regions, getting an address and the item, keying in the address to your Google Map and delivering it.

You are not only getting extra cash with a flexible schedule; you also have the chance to get free or discounted goods as well as having insurance discounts. This way, you are not only getting money, you are also saving some of it.

Doing it as your part-time job, you get paid $14.66 per hour. You are able to make more than $50.00 in just 4 hours!

 

Woman writing with laptop beside

7. Get Expressive, Unleash Your Inner Arts, and Be a Freelance Writer

You have a plethora of options of companies in Singapore to choose from. With enough research, there are many ways you can go about being a freelance writer. You can be a freelance writer and write about anything of your passion – lifestyle, finance, politics, education, history and the list go on.

Its biggest advantage would be only having to commit to your job through the comfort of your own house. Or even your own cosy bedroom. All transactions and business discussions are made online and you can be your own boss. If you have settled down with a family, this could probably be the most suitable way to earn money online.

Very much depending on your company and scope of writing, you may have up to $10.00 for a 700 words article. Every linguistic-driven individual out there knows it is a good start. Of course, mark-up as your portfolio expands!

 

8. Everybody has something they want to buy; so YOU do it

Being a personal shopper, all that you do is get orders from people, get the money transferred to your account, buying it and delivering it to their ways.

The most important step before pursuing would be deciding on whether you want to do it on your own or you want to do it through a brand, a company or a platform. As an example, some people actually get permission from a makeup brand like Colourpop to be an online personal shopper and they get to put the new arrivals and best-sellers in their carts first before everybody else.

Not only that, products from other parts of Asia and the West now are very longed by people. Korean skincare products, designer-brand items, indie brand products – you name it!

Usually, you get paid with the amount of orders you get. Everything grows; hence, you do not need to worry about your crowd. You can start small and ask from your family and closest friends first.

You can make even more money online this way when your platform has gotten bigger and brands would reach out to you themselves to produce affiliate marketing for their products.

 

Woman using cell phone and looking at computer

9. Customer Service Should Always be Prioritized; Listen and Make Money

Customers’ satisfaction is probably the concern of every single enterprise in Singapore. You want to make sure that your products and services are enjoyed, well-liked and most importantly, the possibility of getting a returning customer.

Some food and beverages joints and other companies now have made it available for their workers to get the phone calls as a customer service representative at home. You will likely be getting a specific software installed in your laptop as a medium of communication and getting work done with other colleagues.

To add, many potential employees now are also given a choice of working hours as a part-timer. You could also choose your shift at your own convenience.

A customer service representative is able to have a gross hourly income up to $17.00. The only skill set you would need is the art of dealing with people and handling unexpected situations or complaints.

 

Conclusion

There’s no quick and easy way on how to have extra money in Singapore. A side sig requires determination and discipline before it can become lucrative. If you need money to jumpstart your freelance career, you should consider applying for a personal loan (e.g. for buying photography equipment). Licensed money lenders such as Bugis Credit offer competitive rates and flexible payment terms. Call us today and find out more about our services.

Is Singapore’s Savings Bond a Good Investment?

#1 What is Singaporean Savings Bonds?

SSB, or known as the Singapore Savings Bonds were first introduced by the Government in the year 2015. The Singapore Government launched this bond to aid its people in a secure long-term saving engine. During its early years, it was only known as quite a conservative financing venture. Now, with some newly developed policies and alteration, it has become a better investment means with up to the mark returns.

#2 Get to Know About SSB

Simply put, bonds are a cycle of giving your money to be kept safe to a party that created the ‘bond.’ That is what SSB is. This party, the issuer of the band, may vary, such as private corporations and governments.

Why should you trust other entities to keep your money safe, you ask? This is because this transaction allows for a return. Meaning to say, the more you safe and let the bond issuer keep your money with them, the more rates of returns you are going to get. Also, the main benefit of lending your cash to the government is that; you face zero risk – because ideally, the government should be the most trustworthy keeper.

However, with almost no severe nor immediate risks, ‘investing’ through a bond, which in this case is SSB will not get you a great amount of a lump sum cash. It is like having a savings account, just not with a bank.

With that said, SSB is still one of the most common options when it comes to Singaporeans investing their money because it has a greater return rate in comparison to fixed deposits with a bank. Not only that, it is easier to battle up against the 1.9% inflation, especially for those investors out there who are just starting out or those who want to stray away from any kind of risk as much as possible.

Investment return

#3 Current SSB Investment Yield

As mentioned, buying SSB units is not like investing in the stock market. It is rather a slowly but steadily transaction in order to get a little more thank your bucks. That is why it comes with almost no risk at all.

In any case you are looking out to balance your portfolio with investment plans with much higher risks, this could also be the answer you are looking for.

Nevertheless, it is crucial that you are informed that SSB returns are not as high as they used to be. Back in the old days, their interest percentages would often go beyond the 2% p.a. ceiling value. Frequently, 2.2% is very much possible, or even more. Hence, returns were in a favorable merit back then, even for shorter tenures of only a few years. Not to mention, those who were in the longer tenures, pushing it to the full 10 years, it could even reach 3%.

On another page, the very current SSB interest rate is at a satisfactory level as the highest it struck was only up to 1.76% average of returns per annum over the span of 10 years. In addition, other zero-risk investment vehicle alternatives, such as own savings accounts and fixed deposits – their interest rates are still looking fine. Some banks have stepped up the interest rates for savings accounts. Whilst for fixed deposits, one can find a 2% p.a. returns on cruise control.

#4 SSB Returns

Presented by Seedly Reads, up until Mar. 2, 2020, the average p.a. return value is 1.63%. While this may seem low for some people, bear in mind that it has increased for 0.17% from 1.46% only, ten years ago.

For an instant, say that you are up to invest $1000 in SSB and kept it in the account for the 10 years we counted – the interest rate that will be added to your investment is the current rate on effect, which is 1.63%, making it to a total of $163 of what you are getting.

With that said, Singaporean Savings Bond is a good choice to partake if you would like to have a low-risk investment plan. In our opinion, buying SSB would be a good option if in your current savings, you have $10,000 or less. Or, this could be a feasible recourse for someone who just wants to stash their savings in a place for a few years.

Risk with trending down arrow

 

#5 Get Informed Before You Buy

After knowing the recent circumstances of SSB, if you are still interested, you may now be asking where and how you can start buying. Nonetheless, before you provide a step-by-step guide to that, let us first get informed on the possible risk (are there any?) as well as the benefits.

1.   There will be no penalty exerted for early redemption

Earlier on, we have highlighted that with SSB, the longer the time you let your money untouched, the higher the amount of interest rate you will get. Even so, there will be no sort of penalty for those who wish to end their tenure earlier than subscribed.

After you have submitted your redemption request, you are going to get your principal back together with accrued interest (if any). You are getting it by the 2nd business day of the next month.

As an example, if you would like to redeem $5000 of your pennies in April of 2020, you are to get it in May 2020 along with accrued interest, at the end of 2nd business day. With that said, if you are an individual who likes to have the freedom of your expenditure, SSB is a great option. 

2.   The Singaporean Government got your back

To simply, your money is in safe hands, if not the safest. This is because SSB is a AAA-credited bond. With high credit of worthiness, it imposes lower risk, even if you stand on differing political views as the governing identity.

It is indeed one of the safest investment plans in the current market.

3.   You Only Need $500 to Start

Like other stock market trading, SSB does not require you to have in hand loads of cash to start saving. You are able to buy units of SSB with only $500 minimum.

This makes it appropriate for a lot of people with varied savings and resources, if not all. SSB’s current Individual Limit is at $200,000 including bonds you bought with your own cash or SRS.

4.   Eligibility to apply

If you are an individual aged 18 and above, you are eligible to apply for SSB. You can have an early start with SSB first if you wish to have savings to be untouched in the next few years.

5.   Payment of Interest

You will be getting your interest every 6 months. Since the interest is paid out, compound interest is not applicable in this case. Meaning to say, you will not be earning the interest of your actual interest rate.

6.   Bond ownership

You are to be the sole owner of the bond you bought. SSB are not to be sold like a share.

7.    Other reminders…

a.    Keep in mind that if you wish to use OCBC, the OCBC mobile application works.

b.   Have your CDP account number ready when you are going to apply.

c.    Investment higher than the minimum amount, you may add another $500 and so on.

d.   Each application limited at $50,000.

e.   You are to be charged a $2 transaction fee for every application.

f.     SSB are exempted from any tax payment.

Man with laptop thinking

#6 Where Do You Start? What Do You Do?

Finally, this is how you go about buying your bonds through SSB. We provide here for you step-by-step.

Step 1: Have a local bank account

If you have yet to open up, do so. Most Singaporeans may already own an account of either DBS/ OCBC/ UOB. After that, go ahead and get an individual CDP account. You can do so by following simple steps available on each bank’s website. Once done, all you have to do is print out the application form by yourself and mail it along with the supporting documents required.

Step 2: Apply for SSB

A brand-new bond will be available at the beginning of each month. Commonly, the application lasts up to 3 weeks’ time. Be aware and stay alert. You may also keep yourself updated through the website.

As specified earlier, you can get your SSB through Internet Banking or ATM machines nearby within the 3 weeks. This is where your CDP account will come in handy – you specify the amount you want to invest that month without having to commit to a term of a tenure.

Once done, any amount you mentioned to be invested excluding $2 of transaction fee will be deducted from your bank account.

Step 3: Secure your Singapore Savings Bond

Passing the application period, applicants must wait until the end of the month to discover whether or not your bond has been secured. Let’s say that month the bonds are oversubscribed, and you did not get to secure the amount you initially applied for, remaining of those will be refunded into your bank account in a day.

Bonds by SSB will be officially released during the first business day of the next month. Not to worry, you will be alerted by CDP – and you will start receiving your returns every 6 months starting that moment.

Added step on how to sell (redeem) Singapore Savings Bonds:

You can redeem your SSB at any time you wish to; regardless of your tenure plan.

Here is how it works and what you are going to get:

a.    Early redemption when there is a scheduled interest payment: you may submit your redemption request and be charged $2 of the transaction fee and you will get the principal amount with your full interest.

b.   Early redemption in between scheduled interest payment: you may submit your redemption request and be charged $2 of the transaction fee and you will get the principal amount with your prorated interest.

c.    Redemption at full 10 years terms: no redemption submission needed and the $2 transaction fee. You will get the principal amount with your final interest payment.

In regard to early redemptions, you may submit your requests through DBS, OCBC or UOB ATMs near you or through Internet Banking systems. The bonds redeemable partially, in multiples of $500. Note that you can redeem more than one bond at once. With every redemption request, you will be charged $2.

Also, it is important to note that there will be a “one-month notice” when you request to redeem your bonds. Amounts requested will be automatically credited into your bank account the following month.

#7 An Overview of SSB

It is undeniable, as repeatedly mentioned in the article that Singaporean Savings Bond is the safest investment plan for a lot of people. It is very appropriate because your money is fully backed by the Singapore Government. You are at no risk to even invest to the fullest amount without a cent loss.

Besides, it is a very suitable investment engine when you are looking for something to solely stash some cash away for years. The longer you subscribe, the more you save, the higher your interest rates are.

You have absolute freedom to your own subscription. You may opt for early redemption at any time without penalties.

If you enjoy your read, don’t forget to share the article on your other platforms. With all that said, if you are in any circumstances needing immediate cash or a financial help, you may visit Bugis Credit website – one of the most trustworthy moneylenders in Singapore.

Our Story

Our Story

WHO WE ARE

Bugis Credit Pte Ltd is one of the best reviewed and reputable licensed money lenders in Bugis Singapore, offering personal, business, monthly, payday, and foreign loan.

Registered with the Ministry of Law, borrowers can be confident that they get fair interest rates, accordingly

Bugis Credit also takes pride in offering unsecured loans without the use of property or other assets as collateral. Guarantor is also not necessary, as the company strives to provide borrowers with flexible repayment terms suitable for their budget and capability.

WHAT WE DO

Bugis Credit Pte Ltd is one of the best reviewed and reputable licensed money lenders in Bugis Singapore, offering personal, business, monthly, payday, and foreign loan.

Registered with the Ministry of Law, borrowers can be confident that they get fair interest rates, accordingly

Bugis Credit also takes pride in offering unsecured loans without the use of property or other assets as collateral. Guarantor is also not necessary, as the company strives to provide borrowers with flexible repayment terms suitable for their budget and capability.

HOW WE DO IT

Bugis Credit Pte Ltd is one of the best reviewed and reputable licensed money lenders in Bugis Singapore, offering personal, business, monthly, payday, and foreign loan.

Registered with the Ministry of Law, borrowers can be confident that they get fair interest rates, accordingly

Bugis Credit also takes pride in offering unsecured loans without the use of property or other assets as collateral. Guarantor is also not necessary, as the company strives to provide borrowers with flexible repayment terms suitable for their budget and capability.

OUR PHILOSOPHY​

Bugis Credit Pte Ltd is one of the best reviewed and reputable licensed money lenders in Bugis Singapore, offering personal, business, monthly, payday, and foreign loan.

Registered with the Ministry of Law, borrowers can be confident that they get fair interest rates, accordingly

Bugis Credit also takes pride in offering unsecured loans without the use of property or other assets as collateral. Guarantor is also not necessary, as the company strives to provide borrowers with flexible repayment terms suitable for their budget and capability.

OUR IDEA

Bugis Credit Pte Ltd is one of the best reviewed and reputable licensed money lenders in Bugis Singapore, offering personal, business, monthly, payday, and foreign loan.

Registered with the Ministry of Law, borrowers can be confident that they get fair interest rates, accordingly

Bugis Credit also takes pride in offering unsecured loans without the use of property or other assets as collateral. Guarantor is also not necessary, as the company strives to provide borrowers with flexible repayment terms suitable for their budget and capability.

How to Start Your CPF Investment

If you are a Singaporean who are of age and are already working, you might have a Central Provident Fund (CPF) account. Many Singaporeans use this fund to make their purchase of a high-paying asset like a house. However, many have yet to know that this fund not just helps you to have some savings for your retirement, it also enables you to make an investment. Keep on reading and start investing now!

 

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What is a CPF, CPF Investment Account (CPFIA)?

CPF is a scheme introduced by the Singaporean Government. It necessitates that citizens and permanent residents put aside 20% of their gross wage for retirement, healthcare, and shelter.

CPF credits 2.5% interest and 4% interest for savings in the Ordinary Account (OA) and savings in the CPF Special Account (SA) as well as the Medisave Account and Retirement Account respectively. An additional 1% interest will be paid on the initial $60,000 of the combined balance inclusive of up to $20,000 from OA.

The CPF Investment Account, on the other hand, is a mechanism for one to invest their CPF savings. Simply put, the CPF Investment Account allows one to make an investment without having a lump sum cash in hand.

Besides, it helps one to make the best use of CPF funds for maximum growth. It is easy, convenient and it aids to manage one’s portfolio using the CPF. However, this is only applicable to anyone who isn’t an undischarged bankrupt.

 

Below is the eligibility for investing with CPF:

  1. Already a CPF member.

  2. You are 18 years old and above.

  3. You are not an undischarged bankrupt.

  4. You would have to have more than $20,000 in your CPF OA.

  5. You must not have an existing CPF Investment Account with other banks.

 

Next, regarding investment returns, if you are interested in investing in any share, the value you obtained from your investment will go back to your CPF account, hence, increasing the current value calls for growth. This is to spark encouragement to Singaporeans to maximize their savings for retirement.

Assuming you are in your 20s or 30s now, deciding on investing through your CPF account should inevitably include your vision of the future since you will get to indulge the benefit quite some time later.

 

How does CPF Investment work? What should I know?

Commonly, Singaporeans are known to use their CPF account to make their house purchase. Investing in shares with it is apparently not widely aware of. Nonetheless, in the last 10 years or so, statistically, under 20% of people who invested in shares with their CPF account managed to get a larger number of returns than the OA’s assured returns of 2.5%. Being strategic and smart about when and how to invest your funds is the prime key to grow your bucks.

The most frequent whine we hear people say about their CPF savings is – the funds are not seen. Following that will be – interest rates of CPF accounts are too low to battle against the prevailing inflation rate. With this problem, comes the solution- the CPF Investment Scheme (CPFIS).

 

Key Rules for CPFIS Applicants

Below are key rules for applicants to know before investing with CPF Investment Scheme or CPFIS:

  1. Eligibility

You are eligible to invest if you reached 18 years old and above. Also, you are required to have more than $20,000 in your OA.

This specific criterion is set up as a protection for the investors; which are, you are at a certain lawful age to be accountable for your own mature decisions as well as making sure you still have some savings left in your account if things didn’t work out well.

 

  1. Permissible amount to invest using CPF

There are two methods involved to know how much exactly you can invest based on your existing CPF funds.

The rule of thumb for both methods is method 1, you can invest up to 35% of the investible savings. Method 2, the first $20,000 of your OA cannot be used for investment.

For a more accurate value, you just have to log onto the CPF website, log into your own account and select ‘My Statement.’ Under Section C, find a section called ‘Stocks,’ here it tells you how many from your savings can be used.

 

  1. Only the CPF-approved shares are investable

Five classifications that make the shares CPF-approved:

      1. A company situated in Singapore
      2. A company listed in SGX Main Board primary listing or former SESDAQ shares
      3. Commerce of the shares done in Singapore dollars
      4. A company that is not on the SGX watch-list
      5. Companies allow agent banks to appoint CPF shareholders as representatives to attend and cast votes in meetings

For your information, there are currently more than a thousand companies that CPF-approved. Hence, you do not have to worry about not having a variety of choices.

 

  1. Strategize your investment

One must be very careful and mindful of how and when it is the best time to invest your funds. Remember, even without investing it, you already assured a total of 6.5% interest rates. 2.5% in your OA and the remaining 4% in your SA annually.

Simply transfer your money to your SA to invest in shares. You need to invest in a stock that would get you more than 4% returns per year.

 

Man standing in front of a signage

Should I invest in the CPF Investment Scheme or CPFIS?

It is very much agreeable that CPF Investment is much better than leaving your cash in your bank account unmanaged. Not only that, but it is also zero-risk. It is undeniable that the rates of interest for SA is higher, hence much preferable than OA. For this reason, you can transfer your funds from your Ordinary Account (OA) to your SA.

Bear in mind that you cannot transfer the funds the other way around. Once it is in your SA, it will be there only for retirement. OA – on the other hand, the funds can be used for education and housing expenditure. Hence, the CPF Investment Scheme or CPFIS is helpful in many ways you think suits you best. This way, you may gain higher returns than the supposed 2.5% rate into your OA too.

Before you could start with your investment through the scheme, there are two important things we should talk about as the deciding factors. One is doing it through the right company.

Second, is doing it at the right time. Doing it through the right company meaning the company you invest in should be well-established, financially stable with steady recurring income.

Avoid investing in a company that is project-based, their incomes are much more unpredictable. Doing it at the right is crucial. Every penny you have in your CPF account are your very own hard-earned money, those are your efforts.

Start your investment when you are certain about every single detail of your concerns.

Study and observe the best opportunity to gain higher interest rates in your account. A good basic rule to remember here is to invest during a crisis because the lesser you pay, the lower your risks and the higher your potential return values will be.

 

Man is thinking

Types of Investments I Can Do with CPF Investment Scheme CPFIS

With the CPF Investment Scheme CPFIS, you are permitted to invest in specified products. The complete details of each are provided in the website of CPF.

However, below we have a list for you with each product name indicating if it can be invested through OA or SA.

Note that the arrangement of the product starts from investment with the lowest risk to the highest:

    • Singapore Government Bonds: CPFIS-OA and CPFIS-SA
    • Treasury bills: CPFIS-OA and CPFIS-SA
    • Annuities: CPFIS-OA and CPFIS-SA
    • Endowment policies: CPFIS-OA and CPFIS-SA
    • ETFs: CPFIS-OA, only the lower-risk ones for CPFIS-SA
    • Unit trusts: CPFIS-OA, only the lower-risk ones for CPFIS-SA
    • Investment-linked products: CPFIS-OA, only the lower-risk ones for CPFIS-SA
    • Fund management accounts: CPFIS-OA only
    • Selected retail bonds: up to 35% of investible savings in OA only
    • Shares: up to 35% of investible savings in OA only
    • Property funds: up to 35% investible savings in OA only
    • Gold ETFs: up to 10% of investible savings in OA only
    • Other gold products: up to 10% of investible savings in OA only

 

Man standing in starting point

I Made Up My Mind… Now, How do I Start?

It is easy to start your investments using CPF. However, depending on which account you choose to buy your shares with, the procedures differ.

Refer below for the course of action required for the corresponding account you want to buy your products with. With CPFIS-OA, you would have to open a CPF Investment Account with Singapore local banks namely, DBS, OCBC or UOB.

Normally, you can open a CPF Investment Account with whichever bank you prefer because fees and charges are the same for all three.

This account is to further aid you in letting the bank you signed up with administer and manage your funds.

Nonetheless, you are still going to need a brokerage account for the actual investment. That is up to you to choose which bank, it does have to be the same one.

Regarding the fees and charges imposed by the bank, UOB seems to be the cheapest because they only charge $2 per 1,000 shares or part thereof and a maximum 20$ per transaction.

While the other two banks charge $2.50 and a maximum of $25 respectively. As an example, if you opened a CPF Investment Account with OCBC, and you buy bonds from selected retailers, the retailers would liaise with OCBC regarding your purchase.

With CPFIS-SA, you are not required to open an account with any bank, you can get in contact with your investment product provider right away and start there.

It is encouraged for you to start with searching for a fund management company or investment administrators first before making your purchase. For an easier way, you may register on the line with no hassle of going to the bank and waiting to be entertained.

Register your CPF Investment Account through the online form provided on the website of your product provider. In conclusion, if you are still in need of assistance, you may directly come to the branches of the banks and product providers for face-to-face service.

Generally, you will be required to bring these documents with you.

    1. A printed online registration form
    2. Self-identification documents; NRIC for local Singaporeans and PR, Passport or EP/WP for foreigners

 

If you enjoy your read, don’t forget to share the article on your other platforms. With all that said, if you are in any circumstances needing immediate cash or a financial help, you may visit Bugis Credit website – one of the most trustworthy moneylenders in Singapore.

7 Ways To Earn Passive Income Singapore

Everybody, young or old, should have their own passive income. Singapore, being one of the most expensive cities requires a lot of savings after one retires in order to live on.

If one plans out how to generate passive income correctly, at the right time, through a properly thought of strategy, it may even help you retire early. Passive income involves both products and services.

Some of us, having started their own passive income stream, end up having an actual start-up successfully.

 

The best way to create your own passive income is to make money online.

So you ask. “How to earn money online? Is it safe?” Yes, and no. Nothing is ever risk proof, but most of these are some of the safest ways you can earn passive income without much worry.

#1 Invest in Stocks and Shares

Being a circumspect investor in stocks and bonds can help you build a solid income that pays regularly even though it is known to have higher risks than most.

There are enough stories out there by the unwary thinking they can earn passive income through stocks and other high risk investments.

It is true that stocks and bonds will generate a yearly dividend yield for you, care must be taken lest your investments turn out to be wrong.

With investing in the stock market, there is also a learning curve to it. Learn some basic rules to find the best stocks to look out for and the ideal time to buy them.

Nonetheless, once you have figured out the essentials, you are good to go and all you have to do is wait for your payment and the next.

Others prefer slightly safer options through the buying of bonds. This is because bonds offer a higher degree of capital guarantee. This means you have a greater return rate with fewer worries.

Holders of bond rank at the top in comparison to stockholders; hence, profits of the company are first given to bondholders.

 

#2 Invest in a Business

You can either have a transaction of equity in which there is an exchange of money for ownership and profits or by debt; lending money for a business.

These two are the most commonly talked about in regard to investing in a business.

Equity investments mean that you are taking a part of the ownership, in terms of profit distribution. You are expected to supply values of capital with a trade-off of the business’s profits or even losses.

In debt investments, you basically loan money and getting interest-based income and principal repayment. The best and probably the biggest advantage of this is that this kind of investor is always privileged.

If the company would face failure, the debt investors are prioritized, even over equity investors. This is called the capitalization structure.

 

#3 Real Estate Investment

In spite of the uncertainty of the returns over the recent few years, property investing continues to be one of the most preferred means of investment for long-term great returns.

The reason is two-fold. You are assured to have a regular rental income from your property despite it being ‘passive.’ Sometimes, if you are in luck and you can afford to buy a fully furnished mid-luxury condominium, giving you better monthly income returns over an empty low-cost apartment.

However, if you do not want to manage it yourself, you can look into Real Estate Investment Trust (REIT). It is in their policy to pay 90% of taxable income as dividends to investors.

Investors get to have the benefits of tax advantages of direct ownership. Not to mention, one is free from the headache and endless responsibilities as a landlord.

 

Blogger

#4 Start a Blog/ Affiliate Marketing

This is a more modern take on passive income.

Affiliate marketing is when a content creator whose media is consumed earns through a set percentage of commission by promoting other people’s products.

Simply put, you have a platform, a company has a product, they give it to you – you review and promote. The sales that are made through your link or platform, some part of those will be directed to your account.

This is definitely a good investment opportunity for those with a high followers count. It helps you grow through the exposure and network you get when you connect with a company or a brand.

 

#5 Rideshare Driving

Uber and Lyft have made rideshare driving services a mainstream passive income resource.

It has become a very successful business model with millions of riders getting a share of their own profit in the market. Based on a study, some Uber drivers are able to gain up to $2,000 with 30 hours in total of working hours a week.

If you can and are willing to drive people every Friday and Saturday night, specifically in major cities that are full of crowds and entertainment in those hours, you will make a fortune ferrying late-night revelers home.

 

#6 Drop-shipping Service

Drop-shipping a business of supply chain technique that does not require a retailer to keep any stock readily available. All orders from customers will be intermediated by the retailers directly to suppliers – and it will be delivered then.

Drop-shipping service opens up more job opportunities, especially to those who have to work from home or those who want to get a side income.

Being the mid-person on duty, you are to promote the products to make potential customers have a channel to get their inquiries answered and so on.

But all that you do is forward customer orders and details to the manufacturer, and they will be responsible for that.

 

 

Transcription

#7 Transcription Service

Transcription itself is a great alternative to any content, what more when it becomes an income resource. Transcription is the repurposing of existing verbal content into the written form.

This allows for the content to reach an even bigger range of audiences.

As an example, the transcript of a business video seminar can be sold as a module. Hence, this is why a lot of business gurus say transcription service may come from your active income and provides a passive stream of steady earnings.

 

If you enjoy your read, don’t forget to share the article on your other platforms. With all that said, if you are in any circumstances needing immediate cash or financial help, you may visit Bugis Credit website – one of the most trustworthy moneylenders in Singapore.

How To Invest In REITs Singapore

You might wonder why should you invest in Real Estate Investment Trusts and what exactly can you gain by doing so? Historically, Real Estate Investment Trusts have offered the investors many benefits like competitive long-term performance, substantial stable dividend yields, liquidity, transparency as well as portfolio diversification. These are all the perks that an investor can enjoy if they invest in it.

Essentially, Real Estate Investment Trusts (REITs) would deliver high dividends and a long-term capital appreciation that will inadvertently place them as an important investment for many sides.

As such, many retirement savers or perhaps retirees who are finding means to support themselves financially tend to spend their money into investing in REITs as they consider this as a crucial and important type of investment.

But the question that comes next, is it worth it? What are the pros and cons? What should you know prior to getting involved in this type of investment? Well, here we have made a guide for you to know all about investing in Singapore REITs.

 

 

Pros And Cons

What are REITs?

The most important question that you want to ask is, what exactly are REITs? Basically, Singapore Real Estate Investment Trust or also more commonly known as S-REITs are listed companies where you can invest your money much similar to how one would buy shares in any SGX-listed companies, as well as to own and operate real estate properties. As such, you can say that REITs are a part of these SGX-listed companies. 

When you invest in REITs, you get to own and operate real estate properties whereby these properties would then be leased out to tenants for rental income. As these investors are now the co-owners, they can get access to the rental income for the properties that they have invested which is the distribution yield. The distribution yield is basically the earnings that you get back from investing. As the value of the property assets that they have increases, they are also entitled to gain capital benefit from the increase. 

So, why should you invest in REITs? If you want to generate a dividend stream that is stable as well as to enjoy the benefits of gradual increase of appreciation in property value, then REITs would be the best decision for you.

Moreover, REITs are essentially a crucial key factor when you want to construct any equity or fixed-income portfolio. Investing in REITs will grant you a potential high total returns as well as lowered risks. Evidently, this would make it an excellent counterbalance to stocks, bonds, and cash as you can generate dividend income and also a good capital appreciation.

So, what are some of the REITs that you have heard of? Well, regardless if you’re a newbie in investments, you would be no stranger to some of these famous landmarks owned or managed by REITs.

    • Science Park and Changi Business Park are examples of business parks that are managed by Ascendas Reit. This is Singapore’s first and also the biggest business space and industrial real estate investment trust. 
    • It is also noteworthy to mention that the famous Marina Bay Financial Centre is owned by REIT. Suntec Reit owns this landmark with a total of 33% ownership, and currently also has ownership on seven other landmark buildings with a value of almost $10 billion.

 

Next, what is the difference between REIT and other traditional shares?

When you want to start an investment, you might be wondering if buying Singapore REITs or buying physical properties would be the better form of investment. Surely, both come with their own pros and cons.

    • Capital

If you are considering buying REITs, you can do so with a low capital. You don’t need to worry about forking out a large sum of money as investing in it is not as costly as buying a physical property. Bear in mind that you need thousands of dollars in order to buy a physical property to get a share.

    • Liquidity

It is much easier for an investor to buy and sell REITs as they use trading much like stocks on the stock exchange. It would be a bit hard to buy a physical property due to the high price as well as the long period of the transaction process. Finding a buyer itself for physical property is not as easy as REITs for this reason.

    • Price fluctuations

REITs trade based on the stock exchange, and this makes the price dependent on the market volatility. As such, they are bound to face price fluctuations because of the state of the market. On the other hand, you need not to worry about price fluctuations when buying physical properties as they are not being traded based on the volatility of the market.

    • Management maintenance

The most crucial part of buying physical properties traditionally is managing it. The buyer is responsible to manage the physical properties whereby they have to take care of the maintenance of the properties as well as making arrangements with the tenants all by themselves. Unlike physical properties, REIT investors don’t need to worry about managing their properties as they can hire managers to take care of the maintenance process.

 


Different types of REITs

As Real Estate Investment Trusts (REITs) are generally owned and managed by different real estates, there are many different types of REITs. Here’s a list of the different types of REITs:

 Retail REITs

Retail REITs

Whether you realize it or not, most shopping malls are actually owned by retail REITs. As much as 24% of the investments of REITs are in shopping malls and other forms of retails. So, it is important for an investor to first access the retail industry if they are planning to invest in retail REITs. When you invest in retail REITs, the money would come from charging rents from the tenants in said shopping malls.

You need to be sure that retailers are having a good cash flow with good sales so that there would not be any delayed or default monthly payments. So what you can do is by making sure the retail REITs that you are investing in have a very high change to generate good profits and strong balance sheets. Take the most out of this opportunity to invest in really good retail REITs.

 

 

Orchard

Residential REITs

Residential REITs, on the other hand, own and manage rental apartment buildings and manufactured housings. Like any other investment, you should always analyze the factors prior to buying residential REITs. One of the few things to consider is the affordability of the homes in the area you’re planning to invest in. An increase in rental prices is usually found in the target areas where the rent is high because of low home affordability. So most residential REITs are focused on large urban centers.

In Singapore, residential areas like Orchard and Tanjong Pagar tend to have high rent prices so you can consider investing in these areas in order to gain higher rental income. Not only that, you could also look at the population as well as the job growth. Areas where the economy is growing steadily with a steady net inflow of people tend to be a good sign. Consider investing in residential REITs in areas with these factors.

 

 

Office

Office REITs

There are also REITs that invest in office buildings. As such, they are called Office REITs. Primarily, this type of REIT would get their income from the office rents which are usually signed with long-term leases.Of course, there are several things to consider before investing in office REITs. Assess the current state of economy, look at the unemployment rate and the vacancy rates.

Is the area of office REIT that you are planning to invest in doing good economically? Will they have enough capital? These are some of the questions that you need to ask yourself and make research before going ahead and buying office REITs.

 

 

Industrial reits

Industrial REITs

Those that own and manage industrial facilities are industrial REITs. They get their income from the tenants who rent the spaces. The spaces include distribution centres, warehouses or even specialised facilities. For example, Ascendas REIT puts focus on investments in business park areas like Changi Business Park. Unlike office REITs, most of these industrial properties usually have shorter leases of an average 30 years. 

 

 

Healthcare REITs

Healthcare REITs

Essentially, the investment focus of healthcare REITs are on real estate of medical facilities like hospitals, nursing and retirement facilities, and medical centres. A good healthcare system would most likely guarantee the success of these real estate properties. Generally, these facilities are dependent on the occupancy fees that are available.

If the demand for healthcare services are high, the likelihood for the healthcare real estate to be in a good state increases. You might want to consider companies where healthcare experience is top-notch with a strong balance sheet.

 


 

Dollar Coin

How do REITs raise funds?

REITs generally would raise funds by acquiring new properties. As mentioned previously, they allow you to own and operate real estate properties whereby you get to generate an income from tenants who are paying rents. However, a stable retained income may be insufficient because of the large dividend distributions.

 

There are ways that REITs can take to overcome this problem, such as by carrying out fundraisings.

  • You can put your properties on collateral as a debt for the bank to grant you a lower interest rate. But do note that S-REITs will only allow 45% debt-to-asset ratio at a maximum which will limit their ability to borrow money from the bank.
  • REITs can also issue perpetual securities as one of the means to raise funds. Perpetual securities have a fixed interest rate which is an equity much similar to a bond. Therefore, issuing perpetual securities is not considered as a debt and you can borrow more money due to the lowered gearing ratio.
  • When there is an insufficient debt room for REITs to borrow, they can also consider going for the rights issue. Basically, a rights issue grants you the right to buy more shares or units in a REIT. This right is often granted by the unitholders of REITs at a price much lower than the market price.

 

Think, Consider,Decide

What should you consider before buying them

We have already listed out the different types of REITs and how they work. But before that, there are still a few things you have to consider before buying them. So the next question is, what should you consider before buying?

There are many different approaches to select REITs but essentially you need to analyze the market for you to obtain great returns.

 

Analyze the Singapore REIT performance

You can do this by looking at the universe of REITs where you can assess the performances of all REITs in Singapore across different time frames. When you look at different time frames of REIT investments, you will have an idea of REIT with a good portfolio. As a result, you will get to choose the best for you according to the current state of economy.

 

Check out the quality of the properties in REITs

It’s crucial to analyze the portfolio with excellent qualities. Consider taking these factors into consideration when looking at the portfolio:

    1. Be sure to know the average term of the leases. This can help to give you a secure view of the current income stream.
    2. When looking at the REIT’ properties, take note of the quality of those properties such as the location and the sector of the properties.
    3. Consider the competition that the properties may have to lessen risks and threats.
    4. Assess the current state of the economy

It goes without saying that the economy’s state may undergo ups and downs. When you are in the pursuit of buying REITs, it is of paramount importance for you to assess the current state of the economy as it has a direct impact on REITs. When the economic growth is strong, you can be relieved that it would be a good indicator to buy. Also, as REITs are also focused on a specific sector, looking at the state of the sector you’re interested in is also equally important.

 

How can you start investing in REITs

Now, the most important question. How can you start investing in REITs? There are different ways that one can invest, such as through buying shares of publicly traded REIT stocks, REIT mutual funds or also through exchange-traded funds (ETF). Just like any other public stock, an interested investor can directly purchase shares in a REIT. 

Similar to stocks, you can invest in individual REITs or also invest in a lump of REITs through ETFs. ETFs are the passive funds that essentially follow the results of the underlying indices. Investors can choose to invest on these REIT ETFs which are concluded by the SGX such as:

    • NikkoAM-Straits Trading Asia Ex-Japan REIT ETF
    • Lion-Phillip S-REIT ETF
    • Phillip SGX APAC Dividend Leaders REIT ETF

Moreover, you can also have the assistance of a broker, investment advisor or financial planner to help you in your pursuit of investing in REITs. They are there to help you analyze your financial objectives as well as to recommend the most appropriate REIT investments for you. Do note that you have the choice to invest either in public non-listed REITs or private REITs.

 

Conclusion

If you are a beginner in investments, don’t be too intimidated to invest in REITs. Of course, there are opportunities and downsides to every action. This is why it is crucial for you to weigh all options, do proper and adequate research and be well prepared before you want to start investing in REITs. With all things being taken into consideration, we are sure that you’ll be able to make the right decision. 

We hope that this article will be helpful to you if you are considering to invest in REITs. If you are also on the lookout for reliable licensed moneylender institutions in Singapore, check out Bugis Credit! Head over to the website to find out more.

Everything You Need To Know About Insurance Company In Singapore

Disaster can strike at any moment, and they often come with a huge financial hit. Fortunately, there is a way to preemptively protect yourself from it – insurance. In this article, we will discuss all of the important things that you need to know about insurance companies in Singapore. 

Without further ado, let’s start:

The main reason why you should get insurance

An insurance policy is not intended to be a substitute for your ATM to keep money until you need it. It is also not meant to be an investment. The truth is, the majority of people should hope that they will never have to claim their insurance. 

This is because the typical cause of insurance claims results from a disaster, such as untimely death, bankruptcy, permanent disability, etc. Insurance is just meant to act as a safety net in case those things happen.

There are numerous reasons for getting an insurance, but the main reason to get it is to protect yourself from a potentially devastating financial obligation later on. 

An insurance coverage will provide you with peace of mind against such events. This will be discussed in greater detail in the next point.

 

Insurance is a means to protect you and your family against monetary harm

Although you might be careful with your finances, you are still at risk of financial ruin from disastrous instances. As stated above, one of the main reasons for getting an insurance policy is to negate the chance of suffering from monetary ruin. 

Car insurance suits this classification, along with health and business insurance. Disaster insurance also fits this description. Being able to comply with court decisions and rebuilding your losses after having a disaster are two crucial arguments on why you should get insurance.

Meanwhile, insurance meant for your private property, like fire and renter’s insurance coverage, provides a secure feeling to the policy holder since they know that they are covered even in case of disasters. 

Not having an insurance for crucial areas such as health, and most important assets like car and house can result in a gigantic financial mess that will be extremely hard to come out of.

 

Two main types of insurance

  1. Term insurance

Term insurance comes with a time duration in which you will be able to make a claim in case something bad happens. Once the term ends, you will have the option to extend the insurance for a cost. Term insurance is common for vehicle insurance, health insurance, and life insurance.

  1. Permanent insurance

Permanent insurance is a type of insurance more commonly associated with life or health insurance. As the term suggests, this insurance will last through the insurance holder’s lifetime as long as the insurance is paid. It can also be customized to include a death benefit.

 

If you are getting insurance as an investment, you better buy something else

As stated in the above point, insurance is not an investment and shouldn’t be treated as such. Even though there are some insurance policies that provide returns, the revenue that they will generate is dwarfed by more proper investments.

The return that life insurance with investment components have is not optimal and they will never be a substitute for normal investments.

When is the right time to purchase insurance?

Insurance policies are designed to offset financial threats. Having said that, having an insurance coverage is not required at all times. There are many insurance plans for countless potential conditions and a good number of them are simply not relevant to everyone.

Health Insurance

Health insurance is useful and are less expensive to buy if the person to be covered by insurance is healthy. This is because insurance is an industry relying on odds.

A healthy and young person will probably not make a claim on their health insurance, as opposed to someone who is old and has an unhealthy lifestyle. It is important to time your insurance purchase to get the best deal for yourself.

 

Car Insurance

Buy an insurance only if it is expected that you will need it at some point. Buying an insurance early can result in having lower monthly premiums, however you should still take the time value of money into account. Regardless, applying sooner is way better especially for health insurance.

If you want until you get sick before getting insurance, there is a high chance that your application will be rejected. You might be able to get an insurance, but it will probably be costly, and sometimes the insurers will not cover your already existing health condition.

Bear in mind that insurance is intended to offset long term financial problems, and therefore it could guarantee other significant positive aspects, like preventive health care or to serve as money to buy food following a serious accident at your workplace.

 

Where to get your insurance policy?

Preferably, you should get your insurance from a big company with a lot of clients. This is because a large insurance company is less likely to go defunct compared to a small insurance company.

For a full guide of where to get your insurance policy, kindly read our other article – A Guide On Choosing The Best Insurance Companies In Singapore.

 

Do you need money for your monthly insurance premium payments? Take a loan now from Bugis Credit. Featuring affordable personal loans, easy online applications, low interest rates, and more.

Click here to visit their website or give them a call at 6345-9123 for your inquiries.

How To Find The Right Place For You To Take A Loan Singapore

When you are trying to get out of financial trouble, or you have an unexpected expense that is needed to be settled fast, getting a loan can do you wonders. There are many lenders in Singapore that you will not run out of choices. 

However, that “many choices” part can also be a downside. In addition to having so many types of loans to choose from, deciding where to get your loan can be confusing. Having said that, you will be able to make an informed decision with the appropriate info. 

Be sure to read this article if you are looking for a good loan provider. We will also list some alternative places to get a loan down below. Without further ado, let’s start:

Thinking idea

Look up the registry of licensed moneylenders

Checking the license of a money lender is one of the most important information that you need to know prior to seeking a loan. A licensed money lender will let you know that you are dealing with a company that is following the rules and regulations about loans. 

Because of this, you will be able to take the matter to the court should anything go wrong with your loan that is the fault of the money lender.

If you want to see a full, comprehensive list of all the licensed money lenders in Singapore, you can look it up on the registry of moneylenders. It is readily available on the internet, and it will provide you with much-needed information regarding the licensed money lenders permitted to operate in Singapore.

Looking up the registry is very useful since you will be able to avoid money lenders who are not on that list who normally have predatory practices when it comes to their loan terms and conditions.

 If you are interested in the registry, you may click here to download a PDF file embedded within the page.

 

Get recommendations from trusted friends and family

Another reliable way of finding a good loan company or bank to get your loan from is by asking your families and friends. If you know someone who has gotten a loan before, you can ask them (in a non-offensive way of course) about the lending institution that they get their loans from.

As long as you ask a person who is knowledgeable about loans, you will likely get a good recommendation that will be of great use.

 

Interest Rate

The interest rate they impose

During your search for a loan, it is important to know that you will eventually have to pay the money that you’ve borrowed, in addition to paying the interest.

As such, you must make sure that the interest rates will not make repayment hard for you. Choose a lending company with competitive interest rates that will not grow up so fast that they will lead you into a debt trap.

The majority of lending firms are aware that people are trying to find loan companies that feature low rates of interest. Because of this, they are going to make an effort to look as if their loans have low interest rates.

However, if you look at the fine prints of the terms and conditions of their loans, you will find hidden charges that will negate the low interest rate. Such practices are a red flag of a dishonest loan company, so you should avoid getting a loan from them altogether.

 

Other places where you can get a loan

  1. Pawn shops if you are having a hard time getting a loan

A pawn loan is different from a normal loan in that it requires virtually no credit assessment or application procedure. The total money that you are allowed to obtain will be limited depending on the market value of the item that you will give up as collateral. As such, a pawnshop loan is good for someone who has a bad credit rating.

Although a loan from a pawn shop is a fast and easy way of getting a loan as long as you got the proper item to use as collateral, it can be very risky. The interest of pawn shop loans are generally high, normally varying from 5 % to 25 % in addition to the fees and other charges that you will be imposed with.

Furthermore, if you are not able to pay back the loan when it matures, the pawn shop has the ability to sell the pawned item. Since the collateral will always be a valuable item, and the pawn shop will only lend you for a fraction of the collateral’s value, you will lose out if you failed to pay.

 

  1. Get a money advance from your credit card if you have one

If you already have a credit card, you can use it to use a cash advance. Using this way to get a cash advance is easy since there will be no need to apply for a loan, which can be lengthy.

Additionally, you will be able to get the money fast with a credit card cash advance. There are some disadvantages to using this though. First, there are some credit card companies that issues a high interest rate, additional fees, or both to cash advances.

Cash advances can be a good way to get a quick loan, however, be sure to contact your credit card provider first with regards to the terms and conditions of their cash advance.

 

If you are looking for a licensed money lender in Singapore with fast approvals, competitive interest rates, and easy online applications, we got just the one for you.

Bugis Credit is a moneylender in Singapore that fits that description, and even have other incentives. Click here to view a full range of their loan products or give them a call at 6345-9123.

Top 5 Loans For People With A Bad Credit Score

It is not easy to find out which loan can be obtained by debtors with bad credit ratings, since loan companies are generally not really clear with regards to how they approve or reject loan applications. Nevertheless, we are here to provide you with a few loan suggestions for borrowers with a low credit score so that they can get started on applying for loans.

Without further ado, let’s start:

HSBC Personal Loan

  1. HSBC Personal Loan

This loan is one of the best personal loan Singapore bad credit that you can apply for since it is affordable. Featuring a low rate of interest at just 7%, HSBC’s personal loan offer is preferred by a lot of potential loan borrowers. HSBC also offers an increased loan duration of up to 7 years, as compared to other bank’s maximum of 5 years tenure.

Having an increased tenure will lessen the loan pressure on repaying since you will be able to spread the impact of the loan repayment on your income over a longer amount of time, while paying less each month.

 

POSB and DBS Personal Loan

  1. POSB and/or DBS Personal Loan

If you are in need of a personal loan that releases funds in a speedy manner, a personal loan from either POSB or DBS Bank will be a good choice for you. A lot of borrowers decide to obtain a personal loan since they immediately require the money, particularly people that have below-average credit.

If you will be using the loan money for emergency purposes, it is recommended that you get a loan from POSB and DBS since their loans are disbursed immediately as soon as yuo get approved. If you happen to be a credit card holder to the said banks, your loan will be automatically approved.

In addition to their good campaign and tremendously fast cash release, DBS and POSB jump out from the other loan providers due to their flat rates of interest.

Their interest rates starts at 3.88%, which is one of the cheapest interest for personal loans offered in Singapore. However, take note that you will not be able to avail of the low interest rate if you are earning lower than $30,000 yearly. The flat rate for people who have a yearly revenue of less than $30,000 is 11%.

  1. HSBC foreigner loan

If you are a foreigner currently residing in Singapore and you have no or low credit score, HSBC foreigner loan is a good choice. HSBC features a lot of cheap loans with low rates of interest in Singapore, and they even have something to offer for foreigners.

Featuring foreigner loans with a $40,000 income requirement and a maximum of 7 years of tenure, they offer loans that are not matched by other loans offered in different banks.

This permits debtors to distribute their repayment over a longer period of time and reduce their payment on a monthly basis. Getting this type of loan also makes it possible for foreign debtors to boost their credit score as time passes.

  1. Standard Chartered CashOne

People with poor credit in addition to having a low yearly income will find CashOne loan by Standard Chartered a lifesaver. This financial institution imposes an interest rate varying from 9.8% to 10.8%, in addition to not billing any kind of service charge as long as you earn $20,000 to $30,000 annually.

These percentages are very competitive in the Singaporean loan market in which 11% to 13 % is the standard interest rate, in addition to charging an interest rate of 4 %.

Take note that although the loans offered by Standard Chartered are competitively priced, they come with a limit of a total loan amount of $5,000, or double the amount of your monthly income.

This limitation can be very restrictive especially if you are getting the loan for a big expenditure like a wedding, car purchase, or home improvement. However, if the amount that you intend to borrow fits in the limitation, taking a loan Standard Chartered CashOne loan is a great choice.

  1. Citibank Quick Cash Personal Loan

Even though the requirements that Citibank has for this loan is unknown, it is known that they offer competitive rates even to new borrowers. For instance, Citibank only imposes a 7.5 to 8.5 % interest rate to loans with a duration of 1 to 3 years, Citibank.

That interest rate is very low compared to the standard interest rate in Singapore. Additionally, Citibank doesn’t impose a processing charge, making their loan offers very enticing to borrowers.

However, Citibank’s Quick Cash Personal Loan is not without its drawbacks. If you are planning to take a loan with longer tenure, the effective interest rate of their loans jumps to 10.5 %, which is higher compared to the rates of the other loans mentioned in this list. As such, this loan is not recommended for people who want to get a long-term loan.

 

The loans listed above are appropriate for debtors with bad credit ratings since they are cheap and can be easily applied to. Furthermore, we have outlined the bare minimum revenue qualification of every loan so that loan applicants with reduced source of income can figure out which lending institution is best suited for their situation.

In combination with searching for a loan featuring the lowest cost, debtors also need to try to look for a personal loan that features a monthly repayment plan that they will be able to adhere to, so that they can start increasing their credit. By doing so, you will be able to add more loan opportunities.

Are you looking for a licensed money lender in Singapore that supports online loan applications? Look no further than Bugis Credit. For more information regarding their loan offers and other perks, be sure to visit their website at https://www.bugiscredit.sg. You can also give them a call at 6345-9123.