Receiving a loan from a bank might not be straightforward and perhaps you are in need of an urgent loan with quick approval time to pay for an emergency expense. Unsecured personal loans fromlegal money lenders in Singapore may be the very best option in certain scenarios.
Some customers may have financial needs for a renovation loan, school fees, emergency medical fees, vacations or someunforeseen events whichrequire urgent financial needs.
Getting A Personal Loan from a legal and licensed Money Lender InSingapore
Just before taking a personal loanfrom a licensed money lender, we suggest you to study further about the Money Lenders Act in Singapore. As a borrower, you rightsare protected under the law in Singapore– look into this guide to borrowing moneyfrom money lenders in Singapore before taking a personalloan.
New Regulations For Money Lenders In Singapore (Effective Oct 2015).
New regulations for money lenders are included to scale down a borrower’s borrowing cost (interest rate)as well as to manage the number of default payments. As aconsumer, it is advisable foryou to check out the details about administrative fees, contractual terms which are unfair to you, unprofessional andunfair money lending practices and the interest rates for your money lending contract.
The new regulations specifies a cap of 10% max upfrontadministrative fees, 4% maximum nominal interest rate (NIR) eachmonth, 4% maximum late interest rate per month, loan payment late fees being capped at$60 per month, no other additional fees allowed to be charged by any money lender and acap on borrowing cost.
Choosing A Money Lender In Singapore.
Before you take a personal loan from a money lender, be sure that the money lender is licensed in Singapore. Once you haveshortlisted a list of money lenders, do your due diligence and check out themoney lender’s reviews online.
Applying For A Personal Loan With a Money Lender.
You will need to be hired and you will be demanded to provide your last 15 months of CPF contribution historystatements also your NRIC and the lastest pay slipsif relevant.
Unsecured Personal Loans.
Basing on the Singapore Money Lenders Act, for unsecuredpersonal loans, you can borrow:.
Up to $3,000, if your annual income is less than $20,000;.
Up to 2 months’ income, if your annual income is $20,000 and above but less than $30,000;.
Up to 4 months’ income, if your annual income is $30,000 and above but less than $120,000;and.
Any amount, if your annual salaryis $120,000 and above.
Please do not over-stretch your finances and undertake a loan which you can not servicelater. Always exercise vigilance.