Securing a loan from a bank may perhaps not be easy and in somecases you are in need of an urgent loan with rapid approval time to taken care of an emergency expense. Unsecured personal loans fromlegal money lenders in Singapore may be the most desired alternative in certain scenarios.
Some customers may have financial needs for a renovation loan, school fees, emergency medical fees, vacations or some unanticipated incidents whichrequire urgent financial needs.
Obtaining A Personal Loan from a legal and licensed Money Lender InSingapore
Right before getting a personal loanfrom a licensed money lender, we encourage you to read up more about the Money Lenders Act in Singapore. As a borrower, you rightsare safeguarded under the law in Singapore– check up on 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 lessen a borrower’s borrowing cost (interest rate) and also to manage the number of default payments. As aconsumer, it is a good idea foryou to learn 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 imposes a cap of 10% max 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.
Considering A Money Lender In Singapore.
Before you take a personal loan from a money lender, make 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.
Making an application for A Personal Loan With a Money Lender.
You must be employed and you will be required to provide your last 15 months of CPF contribution history statements 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 yearly payis $120,000 and above.
Please do not over-stretch your finances and undertake a loan which you can not servicelater. Always exercise vigilance.