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Should You Take Up Personal Loans in Singapore?

When it comes to  personal loan in Singapore, some people are afraid of borrowing, others believe loans are superior to credit cards, and a third group actually knows how to utilize these funds. When applying for a loan such as personal loan or payday loan through a licensed money lender in Singapore there are certain myths you need to weed out as a borrower. Below are a few of the myths many people have, simply because they don’t understand how the loans and the repayment terms truly work.

1. Only those who need cash should borrow them

This is true on one end, but there are many ways to utilize these loans. If you wish to consolidate debts, build up your credit score, or pay one larger bill with the personal loan, at a lower interest rate, why not use these cash funds to do so? Anyone, even those with stellar credit, and available cash, can benefit from the persona loan, as long as they know how to properly utilize it to their benefit.

2. I will simply increase debts

Again, this isn’t true. As a matter of fact, the right loan can help you get out of debt faster. When you use it to your power, you can pay off other debts faster, such as credit cards. And, with a much lower interest rate, this will help you get rid of debt faster, for less, and still have cash in hand for other items you need or wish to buy.

3. I should take out more than I need

This isn’t true either; in fact, with loans over $1000, a 9% and higher rate can apply. So, if you do not need this much, a lower borrowing limit will keep the interest rates down as well. Why would you take out more than you need? Isn’t this what has gotten you in trouble with credit cards and other forms of debt in the first place? Don’t get into the vicious cycle. When it comes to taking out the loan, only apply for what you need, as this is going to benefit you and help you build up your credit as a borrower over time.

4. I’m in debt, why take out more?

Think of it this way. Your credit cards are charging you up to 24%; with money loans, you can pay as low as 6-8%. So, why not pay off higher debt, with a much lower debt form of borrowing? If you use the funds appropriately, it will make far more sense, and it will allow you to eliminate those higher debts and interest rates, in a much shorter period of time as a borrower. So, borrow, but do so wisely, and make sure you are paying off the higher interest rates accounts first.

5. Its better than a credit card

Yes, but not. With loans higher than $1000, the 9% and higher interest rate kicks in. So, if you aren’t careful, it can still add up and take a toll on you financially. If you know how to use it wisely and are only borrowing what you need, it can benefit you. But, bear in mind, if you are a high credit borrower, this is not the cheapest way in which you can borrow cash. You should shop and compare prior to borrowing, in order to ensure you are truly going to find the best rate when you do borrow cash.

6. I don’t meet the income requirement

Most banks will require a $30,000 annual income to even consider you for a loan; if you don’t meet this you should instantly go to a money lender, right? Not necessarily. With a very low income level, many lenders will charge you a significant amount of interest, as you are a riskier borrower. So, you still have to be careful where you are borrowing, and fully understand the terms of your loan. You can borrow mindlessly and just hope things work out. You have to know exactly what you are getting into, to avoid getting into a situation which you can’t afford.
There are a number of myths as it pertains to loans and money lenders in Singapore. But, when you know what you are doing, you don’t have to worry about falling into the trap, and getting stuck with high debts you can’t afford to repay. You may also read on: Are you in need of a Personal Loan for Low Income Singapore?
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Licensed Money Lenders & Loan Sharks Differences in SG

You know, tough times come and go. There are instances when you may experience comfort and zero worries with your finances, and everything seems to be running smoothly in your life. However, you may also experience some difficulties when emergencies arise. There may be a need to have an access to extra funds to cover for unexpected expenses, and it is not everyday that you have dispensable money for these situations.

This is why it is a good thing that there are numerous licensed moneylenders in Singapore that offer loan services to you in such times of financial crisis. You can approach them for assistance whether you have a credit card bill that needs to be paid right away, a hospital expense that just cannot wait any longer to be settled, and a few other similar instances involving the need for emergency funds. They provide services such as personal loan, payday loan, low income loan, foreigner loan and even SME business loan. Since asking for money from friends and family members is not always a practical or reliable thing to do, it is best to go straight to people who can give you an assurance of receiving the amount you need.

But then again, you should never blindly approach a moneylender in Singapore without having sufficient information about the services and products offered. Most importantly, you want to be sure that the said business is legal with all valid licenses and paperwork present. Also, it is best to steer clear of the so-called loan sharks that may only mean bad news to borrowers.

Here, we discuss further how to identify a loan shark from a licensed money lender. By having a clearer understanding of the two, you can choose a better company for your financial concerns to get the kind of service you need during challenging times.

These are the guidelines to follow:

All businesses in Singapore are required to operate by complying with certain guidelines and regulations set by Ministry of Law (MLAW). There are standards to be met, and they should not fail to follow these to avoid penalties and legal consequences that could impact their business. For instance, the maximum amount to be loaned and the interest rates involved are all set by authorities in the money lending industry. These businesses cannot simply offer an unlimited amount of cash that clients can borrow since it all depends on their income.

The same holds true with the interest rates to be paid along with the principal amount borrowed. The interest is calculated based on how much the borrower makes per year. So, it is controlled and should be astronomical, and only licensed businesses recognize this policy as they do not want to suffer from having their license revoked by the government.

Professional Loan Application Processing

Only licensed and legal moneylenders can offer you a professional and efficient time during the time you apply for a loan up to the moment you visit their office for verification checks. This is why people who need fast cash consider approaching a licensed moneylender because there is a shorter waiting period before the feedback on their application is received. In banks, the whole experience may be more tedious, not to mention the complex paperwork, credit history checks, and other processes involved.

Yet, you have to be wary of the fact that loan sharks may take advantage of borrowers who are in dire need of emergency funds. They may not only make the loan application process a little tougher, but they may charge high interest rates at the same time. They are aware of your need for extra cash, and they use this knowledge to take advantage of you. No paper trails or written contracts are provided, so there is no way for you to determine the actual cost of interest rates and the schedule of loan payment.

Licensed money lenders implement a system that helps them determine the credit rating of a borrower. Of course, their tolerance or standards for the credit rating is reasonable, yet they only provide small loans. Your salary is also considered when you apply for a loan aside from your employment status and credit score. But the main thing that sets them apart from loan sharks is the presence of a written contract. You are provided this piece of paper that clearly stipulates information about the interest rates and schedule of payment.

Another thing – there are instances when licensed lenders may reject your loan application. This is usually the case when you have existing debts with other lending companies and credit card debts that remain unpaid. As it is a case-to-case basis, it is always good to consult a loan specialist for assistance with your individual concern.

Interest Rates

Banks normally offer lower interest rates as they provide secured loans to clients. But you have to understand the fact that there is a collateral you need to provide before your loan is approved. The asset should also be valuable enough to pass the bank’s standards. This makes the experience tedious when you are applying for a bank loan.

With licensed moneylenders, there are specific interest rates charged on top of the principal amount. The fees are also regulated, so there is nothing to worry about astronomical fees to be settled. But the same does not apply to loan sharks. In fact, be prepared to pay about 100 to 200 percent interest rates that should be settled along with the principal. Unfortunately, this is beyond your control since there is no contract to defend your stand.

Licensed lending companies provides regulated interest rates to borrowers. This is why you can calculate how much you should pay monthly – and there are no surprises along the way.

Zero Threats or Harassment

As long as you borrow money, the amount should always be settled according to the designated time of payment. In addition to the principal, the interest rate or any other fees must be paid as well. By doing so, you may qualify for an opportunity to loan money again if the need arises in the future. But you see, loan sharks may threaten or harass whenever they collect money. If you are unable to repay the loan, you may come across such lenders who threaten clients over the phone or through SMS just for you to settle the amount. Loan shark runners harass clients, and the whole experience can be unnerving.

With licensed money lenders, you may receive written notices as reminders for your payment. You do not have to worry about receiving calls from them left and right and telling you to pay up. But of course, you still have to produce some payment since the interest rate just keeps getting added to your principal amount as long as it remains unpaid.

Bottom Line

It is never too easy dealing with money problems. You may constantly worry about how you can pay your credit card bills, or what to use to have your car repaired. Asking for emergency funds from relatives may be a very tough experience, and your request can also be rejected or declined along the way.

Meanwhile, your bills need to be paid and there is no way for them to go away unless these are settled. This is why it makes sense to consult the right company for your loan needs. Simply going with loan sharks is never a smart idea considering the astronomical fees involved and unfair loan repayment schemes. There is also no contract that can protect you legally, which makes things more complicated than it is.

If you need professional assistance in obtaining extra cash, be sure to consult a financial expert for your concerns. Always work with legal businesses that can give you an efficient and effective solution to your problems. It also helps to check reviews about the licensed moneylender to learn more about the services they offer, as well as actual feedback from clients who can give you ideas on what to expect from dealing with them.

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Are Self Employed Allowed to Apply For Personal Loan From Licensed Moneylender?

If you decide to take a personal loan, but do not know where to go to get it, always choose a licensed moneylender in Singapore. By choosing a legal money lender, you can avoid harassment, which often happens with credit sharks or unlicensed moneylenders. Often people have this misconception about licensed money lenders thinking that they are affiliated with those illegal lenders also known as Loan Sharks. Licensed money lenders in Singapore are authorised by the government and they adhere to strict laws or be subject to significant fines or terminate their licenses. (Read up on: Are there still Reliable Money Lenders in Singapore?)

Licensed moneylenders have restrictions imposed on them when charging interest on personal loans. This means that you can be sure that you are not being deceived to pay ridiculously high-interest rates, and your loan will be more manageable for repayment. A personal loan is also called an unsecured loan. These loans are often used by borrowers for small purchases or unforeseen expenses that help borrowers with their financing. The moneylenders do not allow you to advertise or even send
you any text messages of any kind to advertise or try to take a personal loan unlike loan sharks. These loan sharks do not have a physical office that is why they are doing all these by sending text messages. If these illegal moneylenders violate the personal act of DNC and you can and must report them. These actions are in place to protect the general public from being lured into a personal loan when roaming chatter carrots if necessary.

Unexpected happens all the time, and you can urgently need cash, whether it’s a business loans with cash or when you need to urgently buy a purchase. The instant personal loan is a quick way to help you overcome. It is advisable to get an instant personal loan from money lenders who have hold authorised license.

Advantages of an instant personal loan?

This is easy. No complicated and lengthy procedures are required. All you need is a few simple steps and almost no problems. This is also almost immediately, as the name implies. This is in most cases safe, as long as the licensee issuing your loan gets a
license. If earlier you had bad credit, do not worry. Until you meet the requirements of a usurer to receive a personal loan, you can still borrow the amount of money subject to approval.

If you are using a personal loan for the first time, you should know the advantages of using it in other ways of meeting your financial needs. The licensed moneylender has a license to open a business, provides a minimum interest rate, and the entire application process is impossible. The documentation process is quick, and only original documents are required. The
payment is well planned with an expert considering the possibility of repaying the customer. Thus, when there are so many advantages associated with a professional personal loan.

 

 

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4 Useful and Money-Saving Travel Tips for Adventures

There are so many people who love to travel. But then due to the busy schedules that most of us have, planning a proper trip has become a rare event. Planning a trip means exploring the place, deciding on the budget, number of days required for the same, the places that are to be covered, the activities that need to be done etc. So in a nutshell a lot of homework plus a lot of calculations too. People also have difficulty prioritizing about what to spend on and where to save money. Here are 4 useful and money-saving travel trips for memorable adventures.

1) Be Mindful Of The Expenses And Prioritize Them Carefully

When we travel to a particular place, it is mostly because something about the place attracts us. For example some places are known for sky diving, while others are known for scuba diving. These are activities that would etch a mark in one’s life, if it can be experienced. So instead of spending a good amount of money on the accommodation, one should spend on such activities. By doing a little bit of research online and with some travel agents, one can get a proper idea about the rates of guest houses or hotels and then accordingly book one (definitely the location needs to be kept in mind). Nowadays, there are rented homes available in many tourist places that are offered by people out there. Staying at one of these homes would give a localite feeling and one can actually visit places that a traveler would never have as a part of their best packages too!

2) Blending With The Local Culture

One should try and become a part of the local culture of the place. This would help to make way for a lot of interesting conversations, which in turn would help to gather a bunch of interesting knowledge about the place, the main form of their livelihood, the history of the place, the local cuisine etc. Trying the local cuisine, the street foods is key too! Some of them might be really tasty, you never know; while there might be some that are not so good. Nevertheless, it all becomes a part of the memorable experience and adventure. However, one should also beware of having a not-an-upset-stomach, as otherwise it would affect adversely.

3) Use Local Transport

Most people prefer to have there own private vehicle even when they are on a trip. Or others prefer to travel from one place to another in a taxi. Definitely these are comfortable modes of conveyance, however they are pretty expensive too. Instead using the local transport is a much better idea. There are places that might have there own special mode of public transport, that isn’t available in any other part of the world. Some places have excellent local train service, while others are well connected through a bus or a toy train. Making the most of these transport facilities is key as it not only saves money, but also helps the people to have a proper look around the place. There would be many small tourist attractions that are generally not mentioned while one travels using a guide. But using the local transport would actually help in exploring the place better.

4) Talk To The Travelers

Talk to the travelers around. Lets say firstly you are taking a flight to a place, talk to the people at the airport or at the airplane and find out if there is someone who has the same plan as you. This might end up into a new friendship or may be just information about the place or people that you are travelling to. Talking to the localites is key. Then while on the go, let’s say you are in a bus, start off a conversation with a passenger. Or may be you are in a long queue to enter a museum, talk to the people around. Not only would you come across so many different kind of personalities, but also a lot more information about the place and other important attractions that you never knew existed.

Everyone Deserves A Break

Everyone wishes to go travelling, who doesn’t? At times many are financial bounded and do not have too much cash in hand. If you ever need a temporary help, you can always approach licensed money lender to get opt for personal loans. Get out of the country to recharge and work harder when you get back! Everyone needs to reward themselves.

Also, if these hints and tips can be diligently followed, I am pretty confident one would have a perfect pocket friendly memorable and an adventurous trip! Have a safe one!