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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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Should You Risk Your Paycheck on a Payday Loan?

Saving remains a crumbling fortress that is constantly being assaulted. Whenever you try to save, there are always outside forces that try to take it away from you. Every pay day you need to settle CPF contributions, hikes, loans regulations and inflation is always up, and you are thinking what else you possibly go wrong. You may also be considering payday holidays, but
before making commitments make sure to weight the effects of your decisions.

What is Payday Loan?

Payday Loan:

What is payday loan? A payday loan is a secured loan given mostly to salaried people and comes with a very high interest rates. Most people use these types of loan to cover their living expenses that can not wait until the next payday. The payday loan Singapore is easy to access, but you have to submit a posted check to your loan provider so that he will cash the amount
plus the financing fees on payday.

Benefits of payday loan:

There is no big difference between a payday loan from licensed moneylenders Singapore and the other regular bank loans. The main difference is that the loan must be paid back within a short time and involve a little higher rate to cover for insurance. So long as you can pay on time, a payday loan is a great way of accessing quick cash. Also, licensed moneylenders are able to issue you within 2 days whereas for banks, the waiting time might take up to 2 weeks long and during the process, it might not work out.

Here are some of the advantages of payday loan:

– Fast: unlike most other backs loan that involves guarantors and takes a lot of days to process, payday loans are available as fast as 24 hours.

– Does not involve collaterals: although you can borrow money from alternative, payday loans are only available from MAS licensed lenders that follow strict lending rules. The loan does not involve collateral, and if you cannot make the payment in time, you will not have to worry about losing your property.

– Credit card history is not checked: the main reason why most banks take a long time to approve your loan is because of cavity search. MAS rules on unsecured loans that not involve cavity searches. So if your financial history is not a good one, you will still be able to get the payday loan.

Cons:

Unlike most other bank loans, payday loan requires a lot of caution as it has very little room for errors. If you borrow a very high amount that you cannot pay the full amount on time, you will have to pay higher financial prices. Here are some of the disadvantages of payday loans.

– High-interest rates: the credit interest rates can be as high as 24% per annum. Yes, the interest rate can be as high as 24% in two weeks. Unlike normal banks loans, payday loans are not calculated on an annual scale but remaining time to the end of the month.

– Can easily result in a financial vicious cycle: if you borrow more than what you can comfortably borrow, then you will have to receive a very little salary at the end of the month. Then as the mid-month of the following month rolls around, you will have to get another loan. In such a case, you may end up borrowing the loan at the end of each month.

– Can ruin your credit score: although payday loans providers do not run a credit check, any late payment and non-repayment will be reported. The more you fall behind on your payment, the more you wreck your credit card score.

Bottom Line

If used wisely, a payday loan is a great way of obtaining short-term reinforcement. However, if used poorly, the payday loan can lead you to a state of financial slavery.

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Money Misapprehension Singaporeans Have

There is absolutely nothing wrong about putting value on money. In fact, it is only practical that you start thinking more about your finances since this can help you achieve a more comfortable life and a secure future. By setting up your financial goals, you can begin working towards achieving it, which can give you a better shot at experiencing financial freedom earlier in life. But just because you have a particular financial objective, this does not mean not spending on anything. Of course, there are basic necessities in life that come with a price tag, and you will have to allot some money for these. At the same time, it all depends on your choices of where to source out your basic needs or some luxuries you want to reward yourself with.

The following misconceptions that Singaporeans have about money can be tough to deal with, and they can even impact your decisions in your day to day life. By debunking these myths, you can throw away those preconceived and rather faulty ideas about money, so you can attain your financial goals.

1. In Singapore, every shopping mall is so expensive

There is this concept that several people have about shopping malls in Singapore and how expensive these are. Thus, they fear the possibility of getting into serious debts because of shopping. But is this really true?

Quite honestly, it is true that shopping too frequently is never a smart and practical hobby. If you are a big spender and enjoy buying items even if you are aware of how unnecessary these are to your life, then there is no doubt that you may end up being in debt too often. Yet, if you need to buy essential items, there is no problem with doing so since there are various places in Singapore to get the best deals suitable to your budget.

There are endless opportunities for shopping aficionados that are widely available in Singapore. Various stores feature an array of good quality products at different price ranges. In fact, there are places that offer contemporary and traditional items, as well as local and foreign products. In Singapore, it is impossible not to find what you need – and it is all about searching for the place that can give you the most reasonable deals. Some people assume that shopping in this part of the world means going beyond their budget because of their choice of mall or store. If you go to Orchard Road for shopping, then it is likely for you to max out on your credit card bill. This is the place to go where you can find luxury and branded items that are in the 6-figure range at times, which is beyond the purchasing capability of the average working adult in the country.

So, the next time you need to go buy something at the store, and you feel uncertain whether you should head out or not because of your misconception about Singapore malls, then you know where to go. Flea markets and discount shops are perfect for every budget-conscious individual who just wants to save on their expenses while giving in to their desire to shop for quality products.

2. A significant amount for your emergency fund is a must

We all need to have an emergency fund – this is not even a big surprise to anyone. But some people are afraid of failing at it maybe because they aspired too high and wanted to start with a huge amount for the fund. Now that is where the problem starts since they may have high expectations when it comes to the amount of money they need to save and put into their emergency savings. Just because you have this fear, this should not stop you from wanting to set up your emergency fund. You can never tell how the future may turn out, and there are always some surprises that life throws out at us. These personal dilemmas that can significantly impact your finances include theft, illness, and unemployment. Just imagine how difficult it would be if suddenly you find yourself jobless, yet there are massive bills to pay. How can you possibly get through this problem in life?

This is why it is important to build a reasonable emergency fund that is good for a few months. Experts suggest that a reasonable amount would be 6 months worth of your income. If you have this amount saved, then you will be able to ease your worries in case unexpected situations arise in life. If you are unable to save in time, then what can you do? Alternatively, you can approach licensed money lenders in Singapore who are fully authorised by the MLAW. They offer the best payday loan that you can ever find in Singapore.

 

3. Your retirement is already well taken care of by your CPF savings

Sadly, there are some individuals who feel that they can rely on what the welfare system offers for their retirement. The CPF savings aim to help you get by in life, as long as it is within the minimum standard. But the thing is, are you really satisfied with this, or do you want to live more comfortably during your retirement years?

Unfortunately, the CPF savings will not suffice when it comes to sustaining your ideal lifestyle once you are in your retirement stage. This is merely a safety net – a basic one – that can be your cushion for supplying your essential needs such as food and shelter. But if your goal is to travel more, enjoy dining at fancy restaurants, or living in a nicer place during your old age, then you should not even consider your CPF savings as your retirement fund. This will never be sufficient for your high hopes for the future.

What you should do is to come up with a more realistic emergency fund, along with your retirement account. You have been working all your life, and the last thing you want is to maintain a status as an employee even when you are old and gray. As early as now, make better choices with your finances and consider debunking all of these misconceptions about money. Aim to be more well-informed about these things, so you can create a more favorable and more comfortable future for yourself and your loved ones.

7 Beautiful Countries to Explore in Asia

Holidays are arriving in just two more months time and you must be thinking where should go. You wish to travel far but your saving says otherwise. There are many countries you can explore and they won’t burn a huge hole in your pocket! If you are lacking in some money and no one is there to lend some to you, fret not. You can always approach local licensed moneylender in Singapore as they offer personal loan and even payday loan that help you to get through your monthly bills. The region of South-East Asia encompasses several amazing travel destinations. Home to sophisticated cities and backpacker haunts, beautiful beaches and a rich and varied culture, the region is a treasure trove of remarkable sights and unforgettable experiences. Here are some of the 7 Unexpectedly Inexpensive Places to Travel (Asia Edition) that you can visit.

1. Bali, Indonesia

This Indonesian island of Bali is a popular hotspot for both party goers and those who are looking for a little calm and relaxation. Boasting sandy white beaches and clear blue water, Bali beaches are an ideal spot for swimming, diving, exploring and relaxing. Once you have finished exploring the seaside, you may like to embark on a hike up to Mount Batur to enjoy a stunning view. As night time approaches, Bali comes to life with bustling bars and cheap drinks. Or if you are after a quiet and calm night, have dinner at one of the many amazing restaurants in Bali and head back to your hotel for the night.

2. Siem Reap, Cambodia

If you love culture and temples, then Siem Reap in Cambodia has it all for you! With monumental temples, good street food and vibrant nightlife, Siem Reap has something for everyone. You may like to start your journey by spending a day exploring the temples in Angkor Wat. Then you may like to visit the Angkor National Museum to be educated about the findings and treasures at the temple sites. Once you have finished exploring, it’ll be time to party on pub street, with neon lights making the city shine bright. Or you may prefer to shop at the night market and pick up some detailed artwork, handicrafts, and local street food.

3. Phuket, Thailand

Phuket is an island in Thailand filled with hidden gems and picturesque beaches. Perfect for those who enjoy the sun, sand, exploring and relaxation. There are many outlooks on both the east and west coast of Phuket, offering up panoramic views of the beaches and land, even stretching all the way out to Phi Phi Island. If seeing Phi Phi Island from a distance isn’t enough, you may even like to take a day trip out there. Here you will be treated to fine sandy beaches, spectacular scenery and crystal clear water. Phuket is the ideal relaxing holiday destination.

4. Hoi An, Vietnam

Hoi An is delighted with grand architecture and waterside landscape. The town is rich with Japanese and Chinese legacy, with incredible Japanese merchant houses and Chinese temples. Becoming such a popular travel destination, Hoi An is now also home to lounge bars, hotels, travel agents, and shops. And if you want to travel a little further out of the city, you will find great bicycle and motorbike tracks to explore and enjoy the scenery.

5. Kyoto, Japan

Take a step away from the city life and succumb to the beauty of Kyoto, Japan. It won’t be hard to be mesmerized by the atmospheric streets and a strong sense of traditional Japanese culture. Kyoto encompasses everything from calm to romance and is one of the most popular places to visit in Japan. Famous for its temples, gardens, palaces and breathtaking natural landscape, Kyoto encompasses a rich Japanese culture with stunning sights and great food.

6. Petronas Towers, Malaysia

Malaysia is a wonderful country in South-East Asia that is known for its ethnic diversity. It offers visitors a wondrous fusion of Chinese, Indian and Malay cultures. This diversity is reflected in every element from the festivals to the food. No wonder then, that it Malaysia is called ‘Truly Asia.’ Kuala Lampur, the capital of the country, is one of the most visited destinations in the country. Some of the scenic attractions in the city include the famous Petronas Towers and the Kuala Lampur Bird Park. Other points of interest in the country that you can visit through your Malaysia tour package are Bukit Bintang, the Batu Caves, and the Gunung Mulu National Park.

7. Singapore

The city-state of Singapore is an amazing tourist destination. In fact, tourism is one of the main industries in the country. There are a number of fabulous attractions that you can visit here. Spend some time on the beach of the famous Sentosa Island or dine at the heritage Raffles hotel. Get a bird’s eye view of the city on the Singapore Flyer or visit the incredible Singapore game park, known for being one of the top three zoos in the world. There are also a number of fascinating museums you can visit the National Museum of Singapore, Asian Civilisations Museum, ArtScience Museum, Peranakan Museum, Mint Museum of Toys and the Red Dot Design Museum.

All In All

travel out while you are still young! Explore other countries and you may realise that you can learn so much experiences that you will never get to do so in your own country. You can always earn back your money, but you can never earn back your previous time. Head out and take a breather, then come back and continue to work harder.