Singaporeans try their best to avoid debt, especially if they have time to save enough for a viable emergency fund and more savings. However, personal loans are inevitable if your emergency and savings fund isn’t enough to offset a time-sensitive financial emergency.
Many borrowers will brace themselves against the onslaught of preconceived personal loan challenges. However, you won’t believe that many of these preconceptions are already stale.
Here are five that you might not know about.
Company-Employed People Get Better Loan Approval Chances
A huge chunk of Singaporean borrowers has business-related employment. Many banks approve loan applications of business-employed people because they carry the lowest possible risk. You can think of personal loans as an investment toward a person.
However, if you have documents proving you have enough income to pay back a personal loan, your lenders will give your loan application their approval. Whether you’re self-employed, freelancing, or doing any activity that generates income, giving banks the proof they need gives them enough reason to invest in you.
Banks Are The Only Way to Excellent Loan Products
Singapore’s primary lenders have the biggest coffers in the entire country because they do business with hundreds of various SMEs and multinational companies. However, they’re by no means the only way to get excellent loan products.
The most useful loans depend on an individual’s needs. For example, a six-month-salary loan can be enough for a financial emergency, and you can get this caliber of personal loans from Singapore’s licensed moneylenders.
It Takes Months Until Loans Get Released
Until a few years ago, this myth was true. However, once banks adopted financial technologies and digital platforms to widen their business scope, it finally became a myth. In doing so, they can now immediately disburse loans into a borrower’s bank account upon approval.
However, the full regulation of moneylenders in 2008 enabled many Singaporeans to take out six-month-salary personal loans on the same day they applied. Only loan sharks did this during the time, but all licensed moneylenders have full activity regulation from MinLaw and The Registry of Moneylenders.
It’s Nearly Impossible To Recover Credit Scores
If you have poor credit scores, banks have more reasons to reject your loan application. A low-score borrower can still get approved but have access to low-quality, high-interest, and collateral-anchored loans. Doing this allows them to recover their credit scores if they perform well.
However, you can still get great personal loans from licensed moneylenders if you can show proof of income and employment stability. Licensed moneylenders review credit scores but by no means limit their borrowers to certain products due to their low credit rating.
Every Moneylender is a Loan Shark
With MinLaw and The Registry’s regulation of all licensed moneylender activities, borrowers can easily spot a loan shark from a mile away. Nowadays, you have trustworthy non-bank lenders who report and submit their requirements to authorities, giving borrowers the financial convenience they need at any time.
Work Only With The Most Trustworthy Lenders in Singapore
If you have yet to find the best rates and loan amounts available from non-bank lenders, you can get the best quotes from Bugis Credit, the best licensed money lender near Geylang. They provide a safe and reliable loan that can tailor-fit according to your needs and capability to repay.
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