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:
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.
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
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.
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.