In Singapore, everyone never has a dull moment. At every turn, you’ll always find something fulfilling to do, such as hikes, museum trips, or an all-out food adventure. Unfortunately, virtually everything in Singapore involves spending, and these adventures aren’t always wallet-friendly
Thankfully, you can always count on a licensed money lender for financial emergencies at any time. Truthfully, they should be your last resort for in-trip financial emergencies to avoid spiraling into debt. To find the best licensed money lender in Singapore with the friendliest personal loan terms and interest rates, you can use this short and dependable guide.
1. The Registry of Moneylenders
Despite Singapore’s world-class banking services and culture, loan sharks prey on unsuspecting borrowers needing emergency cash. Thankfully, the Moneylenders Act of 2008 established the Registry of Moneylenders. The Ministry of Law oversees the Registry of Moneylenders, ensuring all registered and licensed lenders are responsible, non-predatory, and fair to customers.
A licensed money lender you can trust has its respective license number. Plus, you’ll find their name and license series number on the Registry of Moneylender’s roster. Borrowers should check their prospective lender’s details in the Registry at all times — even if they’ve previously used their services.
2. The Nearer, The Better
It’s unwise for borrowers to head straight to Bugis if they can find a registered money lender in Tiong Bahru near their home. Once you’ve looked at the Registry’s list, you’ll find a money lender in virtually every part of Singapore. We highly recommend that borrowers always look for a licensed moneylender near their home or workplace.
Doing so makes it easy to pass requirements without having to go through long distances. As you’ll see later, you can pass your requirements to prove your eligibility through online portals. However, you’ll still travel long distances to claim your personal loans once you receive approval.
3. Loan Comparison Websites
On the other hand, if you’re unsatisfied with the nearest moneylenders’ initial impression in Singapore, it’s best to look for an alternative. Licensed moneylender review and product comparison websites, such as Moneylender Review and Loan Advisor, can help you find the best interest rates for personal loans.
These websites have advanced algorithms that make it easy to find and compare financial products with ease. You can register your email and receive notifications if your preferred lender has a promotion you can use to your advantage.
4. Transparent Customer Reviews and Lender Reputation
If you’ve visited a moneylender’s website, you’ve seen countless positive reviews on their landing page. Truthfully, you are correct to assume that these reviews can be fabricated. Fortunately, you can use loan comparison website reviews for reference.
These are independent borrower reviews derived from their experiences. Additionally, you can visit Singaporean financial forums to learn about people’s specific experiences working with a specific licensed moneylender.
5. Have an Objective and Don’t Fall Into Deep Debt
Having no financing objectives is the fastest way borrowers in Singapore spiral into debt. Before passing your loan application, always identify your objectives. In doing so, you’ll always have complete control of your spending, allowing you to avoid spiraling into deep debt.
To help make sure you make the best decisions for your upcoming loan, take note of the following.
- Only Borrow The Necessary Loan Amount
While licensed moneylenders are reliable, they’ll upsell you with higher loan amounts if you’re eligible. For example, you’re opting for a four-month salary loan amount, but the lender pushes you to go for a six-month maximum. If you’ve built a budget around a four-month salary amount, it’s best to stick with your loan amount instead.
Borrowing the necessary loan amount reduces the additional processing fees. Plus, you’ll never worry about high interest and have enough overhead for any late payments. However, we highly discourage that you neglect paying on time and completely despite your overage.
- Calculate All Your Potential Interest Rate Payments
Budgeting and calculations are essential for proper loan management. Any financing will incur interest fees. Thankfully, Singapore’s licensed moneylenders have low-interest caps at 4%, ensuring you won’t contend with high expenses in the future.
You can calculate your interest using the lender’s yearly schedule. If you can pay your cash loan in less than a year, you won’t need to worry about added interest. On the other hand, any bridging or business loan borrower should calculate their interest to avoid unexpected future expenses.
- Budget And Include Your Regular Monthly Loan Payment
Responsible borrowers calculate their income-to-debt ratio, allowing them to learn whether they can pay for additional financing. Truthfully, any borrower with a pending loan, such as a mortgage or education financing, should reconsider borrowing from money lending services. Poorly managing their future financing can lead them to deep debt.
Before submitting your loan application, ensure that you have enough for your monthly bills, scheduled repayments, everyday expenses and necessities, and even things you’d like to purchase. In doing so, you can achieve the best results and experience working with Singapore money lending services.
- Include All Other Miscellaneous Fees
Always remember that all Singapore moneylender loans have a 10% processing fee and a late penalty fee that does not exceed S $60. While it’s smaller than bank loan charges, it’s a budget-affecting amount requiring your attention. Many successful borrowers always take note of all financing aspects, ensuring they never get blindsided.
While credit scores are non-essential details for licensed lenders, you can actually recover poor credit scores using their personal financing service. Lenders will indeed perform hard inquiries about your credit, which will affect your scores. However, they can positively report about your working conduct after you successfully repay your financing. Here are six things you can do to achieve a high credit score after a simple financing application.
- Always Pay on Time
Once your lender confirms and sends your payment schedule to you, it’s crucial to always and completely pay on time. In doing so, you avoid incurring missed payment penalties. If you’re not one to follow your calendar, you can set your debit account to pay your lender automatically. Many Singaporeans and foreigners who miss their payments are most likely to suffer from enormous penalties, leading them to spiral deep into debt.
- Reduce Your Outstanding Debt
Think twice before you apply for new financing. If you have outstanding debt, finish paying for it first, especially if it has high interest. Doing this enables licensed lenders to have full confidence in your repayment success, and you won’t spiral deeper into debt. Finishing your outstanding debts gives you much more financial freedom. Plus, it lowers your income-to-debt ratio, enabling you to borrow without any worries.
- Use Your Revolving Credit and Financing Opportunities Sparingly
Credit cards, revolving credit, and other instant financing opportunities are convenient. However, unmonitored purchases max them out without warning, leaving you unprepared to deal with the consequences. Never use your revolving credit for items that aren’t time-sensitive — focus on saving money for them instead. Revolving credit opportunities are useful for medical emergencies like personal loans.
- Call CBS for Any Credit Report Fixes
Governance and authority systems aren’t inherently perfect, and CBS is no exception. If you believe your credit report has errors, contact them to resolve the issues immediately. However, if their report review yields the same data, it must be correct the second time around. Truthfully, CBS always nails the correct report the first time, but you can report errors and inconsistencies if you find them.
- Avoid Getting ‘Hard Inquiries’
Application “fishing” will merit you with dozens of hard inquiries that negatively impact your credit score. This credit effect system happens in all banking systems worldwide to discourage borrowers from submitting too many financing applications. An excellent alternative is to research and compare through review and financing comparison websites.
- Cancel Your Unused Credit Cards
Truthfully, your credit score will take a hit once you cancel your credit cards. While it’s unfair, these financing channels tempt you into making purchases you don’t need. Plus, you’re paying for its membership fees, which are essentially added budget expenses.
7. Make Sure You Are Eligible and Have All The Documents You Need
Before heading to your lender’s website or physical branch, make sure you have all the essential documents that prove your eligibility. Here is everything you need to know about the eligibility and document requirements for most licensed lenders in the country.
- All licensed moneylenders require you to be:
- At least 18 years old
- Singaporean/PR residents must have regular employment or a source of income above $1,500 per month
- Foreigners/Expats working in Singapore must have regular employment or a source of income above $2,000 per month
Prepare all these documents before you inquire and venture to your nearest licensed moneylender.
- For Singaporeans/PRs
- Identity card / NRIC
- Proof of residences such as a recent bill or letter addressed to you (for tenants)
- Tenancy agreement (if you are renting)
- Recent 3 months payslip and employment letter if your current employment is less than 6 months
- SingPass Details
- For Foreign Workers
- A valid work permit / S Pass / Employment Pass
- Proof of employment (staff pass or company pass)
- Recent 3-month payslips & employment letter
- Proof of residence such as a tenancy agreement, recent bill, or letter addressed to you
- Latest bank statement of account to which yearly or monthly salary is credited
- Singpass (to download IRAS NOA)
- For Singaporeans/PRs
How to Apply For a Moneylender Loan
Licensed lenders make it effortless for borrowers to apply for financing. Using their website and accessible physical branches, you can submit your requirements and get your money on the same day. Here are all the steps you can follow for a successful financing application.
- Visit Your Moneylender’s Website or Physical Branch
A quick search engine query will reveal your chosen licensed lender’s website. Alternatively, if you’re in the area, you can head to their physical branch. If you’ve brought all your requirements, heading to their physical branch is ideal.
- Submit All Your Documents
Take note of all the items we’ve listed above for Singaporean, PR, and foreign borrowers. Each category’s requirements might differ, but their eligibility remains the same. Make sure to have all the necessary documents prepared before heading to your licensed lender’s physical branch.
- Wait For A Short Time to Get Financing Released
Most borrowers can get their financing on the same day after a few minutes to hours as the financing team reviews their eligibility. However, you won’t wait for months to get your money when you use licensed lenders. Loan approval usually takes less than a week in most stretched-out cases.
Licensed lenders in Singapore are an excellent alternative to bank loans. While they aren’t the first choice for many Singaporeans, these institutions provide the best financing solutions with the shortest waiting time possible. As long as you follow all the steps we’ve mentioned here, you’ll always deal with a highly reliable lender like Bugis Credit. Apply for a loan and get the best and friendly assistance from our professional officers.