Receiving a loan from a bank might not be simple and sometimes you really need an urgent loan with quick approval time to taken care of an emergency expense. Unsecured personal loans fromlegal money lenders in Singapore may be the mostsuitable solution in certain conditions.
Some customers may have financial needs for a renovation loan, school fees, emergency medical fees, vacations or some unexpected circumstances which call for urgent financial needs.
Obtaining A Personal Loan from a legal and licensed Money Lender InSingapore
Just before taking a personal loanfrom a licensed money lender, we recommend you to study further about the Money Lenders Act in Singapore. As a borrower, you rightsare looked after under the law in Singapore– have a look at this guide to borrowing moneyfrom money lenders in Singapore ahead of taking a personalloan.
New Regulations For Money Lenders In Singapore (Effective Oct 2015).
New regulations for money lenders are incorporated to scale down a borrower’s borrowing cost (interest rate)as well as to handle the number of default payments. As aconsumer, it is suggested foryou to discover the details about administrative fees, contractual terms which are unjustifiable to you, dishonorable andunfair money lending practices and the interest rates for your money lending contract.
The new regulations imposes a cap of 10% maximum upfrontadministrative fees, 4% maximum nominal interest rate (NIR) per month, 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.
Selecting 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 have listed 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 need to be employed and you will be required to provide your last 15 months of CPF contribution historystatements as well as your NRIC and the lastest pay slipsif applicable.
Unsecured Personal Loans.
According to 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 payis $120,000 and above.
Please do not over-stretch your finances and undertake a loan which you can not servicelater. Always exercise prudence.