Confused By Interest Rates in Personal Loans? Empire Global teaches you

Confused by terms used in Personal Loan? We teach you!

All these financial terms! Frustrated?

Getting a personal loan? Stumbled by the many jargons used by banks and money lenders? Heard of “Effective interest rates (EIR), Annual interest rate (AIR)” Well, let us at Empire Global take you through the many different terms used in personal loan and how you can get the appropriate loan type.

Rule of thumb: BE SMART and careful when you apply for a personal loan, you would not know when the interest rates hits you hard.

As money grows tight in a rapidly growing economy, people starts to take up loans for themselves. Personal loan, payday loans, home loans. However, it is often common that borrowers take up the wrong loan type for themselves or signed off a loan too early which they can’t repay well. Well, today we talk about personal loan and how you should really be careful about the terms spelt out.

What Borrowers Should Learn about Effective Interest Rates (EIR)?

As a borrower, one should be concerned about EIR for your personal loan. When analysing a loan, it can be difficult to get a clear idea of the loan’s true cost based on everything the bank provided.

There are several terms used to describe the interest rate, including effective rate, nominal rate, and more. Amongst all these, the effective interest rate (EIR) is perhaps the most useful, giving a relatively complete picture of the true cost of borrowing (which is why at times its seldom advertised too!)

To calculate the effective interest rate on a loan, you will need to understand the loan’s stated terms and perform a simple calculation. In short, effective interest rate attempts to describe the full cost of borrowing.  It takes into account the effect of compounding interest which is usually left out of the nominal or “stated” interest rate.

For the mathematical inclined!

Effective Interest Rate Formula for the Mathematically Inclined

Effective Interest Rate Formula for the Mathematically Inclined

A typical case scenario is when you have a loan with 10 percent interest compounded monthly. But in face, it carries an interest rate higher than 10 percent, because more interest is accumulated each month.

Interest Rate = 10% monthly
Actual Interest Rate > 10% monthly
 
 

Let’s Break Down Effective Interest Rate Further

1. Determine stated interest rate & number of compounding periods

Firstly, determine the interest rate that is quoted to you and the number of repayment periods. Stated (nominal) interest rate will be expressed as a percentage.

Compounding periods will typically be monthly, quarterly, annually, or continuously.

Stated interest rate = ___%

Compounding periods:

monthly = 12

quartely = 4

annually = 1

2. Making use of the Effective Interest Rate Formula

The effective interest rate is calculated through a simple formula: r = (1 + i/n) ^n -1.

r = effective interest rate

i = stated interest rate

n = number of compounding periods per year

3. Performing calculation of Effective Interest Rate

For example consider a loan with stated interest rate of 5% that is compounded monthly.

Based on the formula yields: r = (1 + 0.5 / 12)^12 – 1, or r = 5.12%

Example of Effective Interest Rate calculation for monthly repayment

Example of Effective Interest Rate calculation for monthly repayment – Credits Wikihow

Another example if it was compounded daily.

Based on the formula yields: r = (1 + 0.5/365)^365 – 1, or r = 5.13%

Note: Effective interest rate will always be greater than the stated rate

Considering home loans? Read more on: http://www.stproperty.sg/articles-property/financial-guide/home-loans-how-to-compute-their-effective-and-nominal-interest-rates/a/119694

2 Main Factors to Check before getting a Personal Loan

1. Compare before you borrow. Be paranoid about it!

Singapore has a huge range of banks and lending companies to choose from. It’s little wonder with the intense competition that personal loan interest rates sway greatly every time. Hence it’s best that you do your research and shop for the best persona loan at the time you need it.

Beware of marketing gimmicks
Free luggages a norm in Bank Marketing Gimmicks

Free luggages a norm in Bank Marketing Gimmicks. Beware of such gimmicks before taking up a personal loan!

One of the basic reason why interest rates fluctuate so much? Banks make money from charging interest rates. Depending on the popularity of personal loan in the market, they can charge lower or higher. You remember those free gifts and luggages when you sign up for a personal loan?

Well, that’s a marketing perk that banks try to get you to signup with their personal loan and take your attention off the high interest rate on offer.and banks can get desperate.

2. Show me the money

As a borrower you would want to pick a loan type to best suit your financials and repayment ability. Some companies will include additional fees such as processing fees, insurance fees which will unknowingly add to your total repayment.

Hence be a smart financial shopper. Be savvy about it. You want to borrow when the the banks are low on clients.

Enough of bank interest rates & terms!

Interest rates. Just show me the money.

Interest rates. Just show me the money.

There are many ways out of financial problems. All that is required is to seek professional advice from the right people. When you are shopping for a loan, be mindful of the different rates that a bank or institution quotes. Always ensure you understand which rates they are quoting and then compare the equivalent rates between alternatives.

These article is just an overview of effective interest rate. Look out for our next article when we go in-dept on personal loan and all the interest rates terms. Leverage on the proper loan by picking the one that suits you best for your situation. In short, do your research well!  

Empire Global is a licensed money lending company in Singapore. We place great emphasis on dishing out proper financial advice to our customers before they sign on the dotted line.

Problem Gambling & Considerations in Getting Personal Loans

Problem Gambling and Considerations in getting a Personal Loan

Think World Cup makes you Rich?  A look at Problem Gambling

Seen the problem gambling advertisement by Singapore? It has gone completely viral and people from the USA has seen the ad. Most of us at Empire Global are glad we supported Germany! Some of us have won quite a bit. Of course we bet from licensed source – Singapore Pools.

And who could forget dynamo Germany win over Argentina in the World Cup finals! 1-0 and that sealed the deal for the campaign.

We wished this was us! Gutsy guy who made this pick. Well, the ad message is to get across “Problem Gambling” to people.
Any Other Score: Germany vs Brazil

Any Other Score: Germany vs Brazil. We all wished we had this betting slip! 7-1 to Germany.

Here’s the ad done to resolve problem gambling

Problem Gambling in Singapore

We probably should have heeded Andy’s dad advice to support Germany isn’t it? With Germany’s win over Brazil (7-1 trashing), our hearts wished we had bet big on Germany. Wouldn’t you?

Although the memes and the jokes that people made over the ad made Singapore famous indirectly but the underlying message is important. Which is why the government agency will not yank the advert out from our tv viewing commercials.

Problem gambling is on the rise here in Singapore and is getting prevalent in our society especially with two big casinos in our country. Public education has increased greatly over the years, with readily available helplines , exclusion acts from casinos  and many online resources and support from government agencies. Here’s an info graphic to show some numbers on gambling habits in Singapore.

Gambling Figures 2011: Highlighting Gambling habits of Singaporeans

Gambling Figures 2011: Highlighting Gambling habits of Singaporeans. credit: ST PHOTO

With the increase takedown on illegal gambling dens and illegal moneylenders, it shows that Singapore is taking a strong stand on illegal activities.

Read more on: Singapore cracks down on illegal gambling dens

Borrowing Legally and Illegally

With World Cup this year, moneylenders has seen a spike in customers who are borrowing. Some of them had gambled heavily on underground gambling dens and needed financial assistance immediately. Some had turned to loansharks to borrow to pay off their debts. We speak to such customers every so often and at times we had to turn them down too.

The benefits and low risks involved for borrowing from legal lenders far outweigh those of illegal lenders. Harassments, high interest rates, SMS spam are the things you would want to avoid when you want to take up a loan.

Read more on: Why borrow from Licensed Moneylenders

Financial institutions and legal moneylenders have regulatory compliances and legit licenses to provide personal loan. Furthermore, with Budget 2014 there are new changes to the moneylending industries. Tighter rules and regulations are being carried out with more crackdowns on moneylenders who fail to compile within the rules. Moneylending licenses are getting lesser too. Which means those licensed moneylenders you see now are pretty much doing a great job.

Moneylending rules are under review which was announced during the World Cup period. Borrowers would have better financial education and interest rate caps. We expect this will be done across the board soon and the stop to new licenses for moneylenders since 2012 goes only to show that the government would only want good moneylenders to remain in the industry

Read more on: Moneylending review this World Cup

Getting a Personal Loan

You may need a sum of money urgently and you have exhausted all avenues to look for. This is when people turn to licensed moneylenders as it offers a form of unsecured debt financing solution. A Personal loan might be a good choice to look at. Plus moneylenders are able to release funds on a shorter term notice.

Advantages of Personal Loan from Moneylenders

Personal loan issued by moneylenders are unsecured meaning that you don’t have to vouch so strictly for your credit rating or income as opposed to by banks and other financial agencies. However by saying so, ensure that you are borrowing from a licensed moneylender or else you might end up in debt with extremely high interest rates.

Most of the time, one will need to handle a stack of paper work and provide assurance to lenders in order to receive a personal loans. Whereas with moneylenders, this step is greatly simplified. You would not need to have  a perfect credit rating or high salary to cover the personal loan.

Read more: Personal Loans Information Guide

5 Important Considerations before getting Personal Loan

1. Have you thought of all other alternatives before approaching a licensed moneylender? Do you have reserve funds somewhere? This is because personal loans bring another form of debt towards your financials.

2. Personal loan contracts are legal and borrowers are to ensure that they are able to meet the repayment terms and contract requirements. Ensure that you are able to meet the repayments set out and double check in on your financials before signing on the contract.

3. Borrow only what you need and what you can repay. Do a financial calculation of your outstanding debts, income and expenses. Gauge your debt servicing ratio, and borrow only what you can mange with. This is to avoid unwanted interest repayments.

4. Ensure that moneylenders or financial officers explain the financial and legal terms that are bounded in the contract. ALWAYS be sure that you know and understand the personal loan contract term. For personal loans, keep in mind the basics which is repayment period, repayment schedule, interest rates and other fees that could be incurred.

5. Be sure of yourself that you have made an informed decision about taking a personal loan from a licensed moneylender. Go with a licensed moneylender that you are comfortable with. Check their reviews online and compare them. Do not rush to take up a personal loan. Do through research for yourself.

At the End of the day

Regardless of whether you are borrowing from banks or licensed moneylenders, ensure that you have done adequate research and comparison on the loan contracts.

Personal loan are contracts made between you and the lender, understand the legal terms and the repayment contract that is set out. Caculate the interest rates and the repayment amount for the full loan term to ensure that you are borrowing within your limits.

ALWAYS borrow within your capabilities.

Stay tuned as we bring more articles on personal loans and how it affects you. We look into interest rates offered by banks and the many financial terms and buzz words commonly exchanged between them to confuse borrowers.

Empire Global is a licensed money lending company in Singapore. We place great emphasis on dishing out proper financial advice to our customers before they sign on the dotted line.

Here’s the new ad done by NCPG to save themselves. Some find it a good one. Some not so. You have the final say.

NCPG new Ad One More Time for Andy's Dad

NCPG new Ad One More Time for Andy’s Dad after Germany’s win this World Cup. What say you?

Credit Card Payment on Credit

6 Tips to help you Manage Debts & Finances

According to an article published on The Straits Times on 1 August 2013, Singaporeans are loading up more and more on debts and many are taking up multiple loans.

This is also made evident in the Yearbook of Statistics Singapore 2013; it shows that the number of pledges received at pawnshops and the numbers of loans have shot up significantly between the years 2011-2013. Obviously, this has shown that Singaporeans may have difficulty in managing debts and require help to manage debts.

As it’s becoming easier to apply for credit options such as credit cards, credit lines and loans, the number of young adults running into debts are increasing as well.

6 Tips to Manage Debts Better

So how should you ensure that you don’t end up being buried under a mountain of debt?

Here is a simple video by Institute of Financial Literarcy that shows us how you can learn to manage debts, and some take-away pointers from us at Empire Global SG.

1.) Don’t take up loans that you Cannot Afford

Before you get too excited about taking up a loan for your new Porsche or Ferrari, please bear this in mind – higher debts equals higher repayment terms which leads to lesser ready cash for your other expenses.

As a general rule of thumb, your total monthly servicable should not exceed 35% of your gross income. This is to ensure that you will be able to repay the loan with ease and not create a pit-hole for your future.

2.) Be interested in interest rates

Is it true that you should take a package with a lower interest rate? If you agree with that statement, you are probably paying more interest than necessary.

Effective interest rates reflect the true cost of taking up the loan as it takes into consideration the frequency and amount of the repayments.

This could means that although you are servicing a smaller amount of monthly repayments but you are actually paying more than one who pays a larger monthly amount.

Advertised interest rates on the other hand, are typically nominal rates, which have not taken the amount of loan and period of repayment into consideration.

Therefore, next time when you are offer an attractive loan rate, do not be too hasty to take up yet.

Ask the bank for the effective interest rates as well; calculate the exact amount that you need to repay after taking into consideration the amount of loan and the frequency of repayments before you decide whether to take up the loan.

Hence, if you are keen to manage debts, make sure you have adequate knowledge in the different interest rates and be very clear of what you are landing yourself into!

3.) Read Everything before signing anything

Unless you are a superstar who needs to autograph for 5000 fans within 2 hours, take time to study the contract carefully. Understand your rights and obligations before you sign.

If in doubt, question every term and jargon that you don’t understand. Know that you are the customer and have the right to know every detail thoroughly from the service providers.

Once you have signed on the contract, you are legally bound to the terms and conditions stated.

To manage debts well, do not make the common mistake that most people do when taking up a loan deal. Not reading the fine print!

4.) Don’t Borrow to Pay a Debt. Ever.

We cannot stress on this point any further – Never Ever Borrow to Pay a Debt. Do this in order to manage debts better!

If you need to borrow to pay for a debt, it shows that you are already having problems to manage debts.

Stop before you dig yourself into another hole! Look at some of the Stupidest Ways Singaporeans Deal With Debts and don’t follow in their footsteps.

If you think you can manage debts yourself, by doing so, you are totally wrong. Wouldn’t it be worse to have one more debtor coming after you for repayment?

Here are some steps from MoneySense to help you understand how you can become debt-free as soon as possible.

Credit Card Payment on Credit

Credit Card Payment on Credit Card Joke

 

5.) Stay on track with the big picture

Are you getting confused over the different debts that you have? Are you unsure of what debts you are paying for every month and when are the repayments going to end?

To manage debts well, come up with a spreadsheet to have a better overview of the outstanding debts. It will also help you to prioritise which debt you should repay first.

As a general rule, you should always pay off the debt with the highest interest rates such as credit card debts.

This helpful infographic will show you 5 tips to save yourself from the credit card debts.

5 Ways Dig Yourself Out of Credit Card Debt Info graphic. Manage Debts better!

5 Ways Dig Yourself Out of Credit Card Debt Info graphic. Manage Debts better!

 

6.) Consolidate and save

Are you suffocating from the different debts that you need to repay every month? Perhaps it’s time for you to speak to your lender on the repayment terms.

Trust us; the situation will just get worse if you try to avoid payments. Have a good control over your financial situation; ensure that you do not have too many late repayments to prevent incurring more interest.

Your lender may be able to help you to restructure the loan. After all, all lenders would want their money back.

Don’t try to avoid your lender just because you are having problems with the repayments. Be open to them. Ask for help.

Conclusion

At the end of the day, the best way to prevent you from getting unhealthy with debts is to be able to manage  debts well. Understanding your needs and wants, be able to differentiate between the two.

Focus on your priorities in life. Understand your needs and reduce on your wants, you will naturally be able to reduce your debts.

Before taking up a loan or swiping your credit cards for your next purchases. You should look at your monthly income, expenses and budget them accordingly.

Do you have the capability to support that new purchase? Ask yourself the questions before committing.

Spending more than you Earn

Spending more than you Earn

 

Therefore, as much as possible, we should try our best to manage debts before it gone badly and enjoy our lives within our own means.

If you can only remember one point, just remember this – Spend within your limits and plan wisely. Speak to the friendly loan officers at Empire Global SG for advice and assistance if you need further information.

Managing Debt in Singapore

In our fast-paced society and growing needs, it has become a stage whereby most people would have debts. Be it a home loan, mortgage, personal loan, car loan or credit card bills. Most importantly, one should pay off one’s debt as soon as possible to avoid incurring unknown expenses. It will save you lots of hassle and money in the future.

It is important to understand that getting into debt is a major responsibility. Too much debt can easily get us into trouble. Ask yourself the following questions before making a commitment to borrowing.

6 Big Questions before Borrowing & getting into Debt.

1. Do I really need it in the first place?

Many a times we tend to buy things we do not need. Getting the latest iPhone? Getting new clothes because of an event? A growing number of people are now buying things that they don’t really need, but due to the people around them or society itself we make the purchase on the item. We love ‘the thing’, hence we need ‘the thing’. Sounds familiar?

Many of our purchases are due to our inability to resist the temptation for instant gratification. We are turning into a first buy, and then pay for it later lifestyle; without knowing whether we can earn that money in future! Be very careful of instalment plans on purchases. It’s easy to underestimate the small weekly payments as it can add up to a whole lot more. Avoid being rash in purchase decisions and check the terms and conditions of any such instalment policy.

Start simple. Assess whether the purchase decision is a need or a want. Determine whether if it’s something that you can wait. Then save up for it and make the purchase later. Buy when you need it, not when you want it.

Impatient: Today's tweens want everything fast, with 56 per cent admitting they prefer instant gratification - Dailymail.co.uk

Impatient: Today’s tweens want everything fast, with 56 per cent admitting they prefer instant gratification – Dailymail.co.uk 

2. Is there another way I can pay for my items?

Sometimes, there are subsidies and grants for items. Some of the easiest way to pay for a new item is to sell an old one. At least this reduces your purchase price of the item or even make a profit out of your sale.

Try making a bargain on your purchase items or check out online marketplaces for cheap deals and second-hand purchases. Many a times, we seldom need items that are brand new. Pre-loved items are currently in trend now as it sharply marked down from its usual price.

Stretch your dollar on your purchases. Singaporeans are embracing the second-hand market and its a fast booming economy.

Stretch Your Dollar - Second-hand Economy

Stretch Your Dollar – Second-hand Economy

3. I already have other monthly expenses. Can I still afford it?

Track your budget. Use a budget tracking app or even an excel spreadsheet to understand your financial standing. See how much you have left after your monthly expenses, borrowings and savings. Look at the amount at the end of the day and determine whether it is still advisable to buy it or to put off the purchase.

Make a budget. Always.

Make a budget. Always.

Here’s a quick video on managing your debt in Singapore.

4. How much should I borrow?

How much should I borrow

How much should I borrow

Always try to make a larger downpayment that you can afford or go with a repayment policy that is bigger and shorter within your means. Go for loan plans that can be paid off earlier than the set period so as to avoid incurring further interest on your debt.

Borrowings should always be kept within the repayment limits; too much or too little can be restricting in their own way.

5. How much do i have to pay every month?

To keep your financial status healthy, you should not fork out more than 35% of your gross income on your total debt that you have.

Balancing Your Debt Payment

Balancing Your Debt Payment – Ensure that you plan your debt repayment well against your income

6. How long will it take to pay off my loan?

Managing Your Loan Repayment Period

Managing Your Loan Repayment Period

The longer a loan period is, the more you end up paying. Ask for a comparison of loan tenures across different loan packages that loan companies offer. Look for the interest rates and cumulative interest rates as this will help you in making an informed choice to decide on a comfortable repayment period for your debt.

Ask the loan officers for a manageable repayment period within your means. Understand the different undertaking of each loan types from them too. Payday loans, personal loans, housing loan or even renovation loans are different terms that a loan officer will use. Choose one that best suits your situation.

Conclusion

The whole point here, is that we don’t think much about long-term aspects of our spending and hence make bad financial decisions that land us into debt. Always spend within your means.

Ask yourself repeatedly; Do i need this? Can I afford this? How can I pay for it?

Know your own financial ability and borrow the minimum you need. All these will allow you to have a peace of mind and be financially sound. And finally, always be prepared for life’s “What if’s”. Have emergency savings to fall back on to cover against life’s ups and downs.

References

 

Moneylenders Genuine or Fake

Moneylenders boosting sales or genuine to help via online platforms?

Singapore — Followers and friendship is cheap. Recent article on the May 11, Sunday Times 2014 showcasing the bloggers community in Singapore. Highlighting that there is an increasing number of people buying “likes” on Facebook, Instagram and other social platforms. People have been boosting their online popularity by paying for “likes”, retweets and followers. All these for a small price. True? Totally.

Now there are modern bots who are very good at emulating human interactions and these are developed by service providers who all want to earn from a person’s or company’s ego. Some companies are known to using these providers to give them an edge in the market.

Stronger” social community means the company has some good PR with the customers right? Well, don’t be too easily deceived by it. Having higher numbers of ‘Likes‘ or ‘Followersdoes not necessary tell you anything about the person or business. Believable? Up to you.

Moneylenders giving a bad name to themselves

It has come to a concern that in our community of licensed moneylenders, there are an increasing number of companies using link networks and providers. Unlicensed moneylenders or some legit lenders even, have used similar offerings to promote their website. All these are done in order to attract and achieve more sales for the company. However, most of the services provided by them are like just to close sales and increase loans take up rate rather then sincerely there to provide good services and advice.

Some of these loan information are grabbed from other websites that are not even relevance to Singapore. Marketing firms have been arguing about this practise stating that these providers are providing dishonest means to convince their customers.

Increasing number of moneylending firms using black hat SEO techniques to boost ranks

Increasing number of moneylending firms using black hat SEO techniques to boost ranks

Paid articles or blogs to popular bloggers made by moneylender firms are increasingly misleading and the competition is heating up. With strict laws made by the government, some moneylenders are now using these methods to give themselves good online reputation.

As consumers, always do your research and check out the reality of the information and accuracy. With the internet providing vast amounts of information, it’s now much easier to make your choice. Look out for legit reviews and always check out the competition.

Online popularity the right way

As a licensed moneylender company, we want to provide real value to our readers and to allow them to make the right choice when they require a loan. This is why we have written lots of guides on the hows of getting the right loan and the whys of borrowing from licensed moneylenders.

Our practise as legit moneylenders, we want to provide sound advice to borrowers. We understand the borrowers mindset, that they want quick solutions to solve their financial woes. This is why we have heavily emphasized on the “what to avoids” inborrowing.

Ask our loan officers and they will offer you great advice

Ask our loan officers and they will offer you great advice

We want to the educate the borrowers first and provide the most updated information to them.

Borrowers need to understand on how to choose the right moneylender and to know about the importance of borrowing from a legitimate licensed money lending firm. Although there has been a surge in money lending firms in the neighbourhoods, the government has been introducing ways to curb bad practises made by some firms. Hence checks are constantly carried out and firms found flaunting the rules are heavily fined.

Therefore, do not be shy to pick up the phone and call the licensed moneylenders and enquire for more details before taking up a loan. Pay a visit to the moneylenders office and find out more information and ensure they are legit and sincere loan providers before signing on any loan document.

Doing all the necessary checks and finding out more information do not only ensure you are borrowing from the right source but also ensure you get the best available loan as well as the right loan package that you are able to service and solve your financial difficulties during tough times.

Why Borrow from licensed moneylenders

Why borrow from licensed moneylenders

Singapore — Unlicensed moneylending services have been creating issues for long in Singapore and recently efforts have been ramped up to deal with such occurrences.

Although with additional efforts to handle unlicensed moneylenders, there has been a debate to make moneylending from such lenders a crime.  This is done in order to further reduce moneylending harassment issues.

Head of Unlicensed Moneylending Strikeforce, Superintendent of Police Aileen Yap mentioned in an article on ChannelNewsAsia 11 Oct  “Singapore has zero tolerance for unlicensed moneylending activities resulting in harassment acts that threaten the safety and security of our community.”

The benefits of borrowing from licensed moneylenders have long been accepted by the community at large. This is shown by the thriving popularity of legit moneylenders setting up shops in the neighbourhood. People have grown to accept such licensed moneylenders which set themselves aside from illegal lenders as they provide a form of legit lending services for those in need. The increased supply due to rising cost of living have led to people turning to such businesses to apply for personal loans.

Avoid the bad stuff early!

Avoid unlicensed moneylenders

Avoid unlicensed moneylenders syndicates. Avoid harassment & high interest rates. Save the trouble of endless worries.

Avoid harassment methods by properly borrowing from legit moneylenders. In Singapore, moneylenders have to adhere to strict policy of different moneylending laws laid out by the government and if lenders fail to abide to one, they will face harsh punishments such as fines or revoking of lender’s license.

More professional licensed moneylenders would also advise borrowers on a feasible repayment scheme which they can manage their money properly.

Avoid extremely high interest rates met out by unlicensed moneylenders. Moneylenders are licensed by the “Registrar of Moneylenders” in Singapore, meaning there’s restrictions in place on the different fees, maximum interest rates they can make and the maximum amount they can lend out.

With the new rules mentioned in this year Budget 2014, tighter control over licensed moneylenders shows the government interest in this business and ensure it does not go beyond control.

Avoid SMS spam from illegal moneylenders tempting you to borrow from them. Licensed money lenders are by law not allowed to tele market or send advertisements via SMSes to potential customers. One can report them to IPT as they have violated the personal DNC act and moneylenders act.

Avoid illegal means of people obtaining your personal information. Bad moneylenders have been touted to use one’s personal Singpass login details to obtain personal information. This piece of information can be wrongfully used. Hence legal lenders will only do Singpass verification checks when one is obtaining a loan at the office. This is usually to check on your previous salary to issue you the appropriate loans that one can service.

Borrowing from  moneylenders. What’s better?

On the whole, it’s much better that borrowing is not criminalized, but addressed through educating people on borrowing from different sources.

Loan advisers are now equipped with proper knowledge to dish out proper loans to borrowers. They are usually trained by licensed moneylending firms and they adhere greatly to the rules enacted towards the company.

By borrowing from legit licensed moneylenders, they offer short term payday loans and personal loans that ease up one’s financial burden. Aside from that, it is better knowing that these businesses have a regulatory compliance and legit licenses to provide loans.

This form of security is a huge advantage as compared to borrowing from unlicensed ones. One can save their own trouble and borrow from legal providers instead.

Differences between payday loans vs credit card cash advances

Differences between payday loans vs credit card cash advance

Singapore – If you have been researching and comparing credit card cash advances and payday loans, you might get confused between their various offerings.

Credit card companies are stiffening up the competition as they compete amongst themselves and the different moneylenders to offer fast cash loans to people.

Getting loans is easy in Singapore with different schemes for different package offerings. Banks, licensed moneylenders and a variant of loan companies all offer a type of loan for different consumers. So let’s narrow down to the loan types of payday loans and credit card cash advances.

Let’s look at payday loans

Basically, when you are looking for personal loans in general, you might have seen different terms used interchangeably; payday loans, personal loan, cash advance, fast loan. In this article we make reference to payday loans which is part of a personal loan type.

The definition of a payday loan – A payday loan is referred to as a short-term loan that allows a person to take up a loan amount based on their salary. There’s a minimum monthly income cap depending on the moneylender rules and borrowers who have a much higher verifiable income salary would be able to borrow more money.

Payday loans (also called “payday advances” and “personal loans”) are a subset of unsecured loans, meaning there is no collaterals needed. Payday loans are granted based on your income and are tailored to the borrower’s ability to pay back in a certain timeframe. Sometimes payday loans can be paid back in multiple split payments, but are required to pay back the entire amount with the agreed interest.

Licensed moneylenders provide payday loans and the interest rates may vary accordingly. One of the greatest advantages of payday loans would be negotiable or adjustable repayment plans. This will greatly help you in terms of money management as one can better plan their finances.

Another great advance that legit moneylenders offer are simple policies on their rates. Only an interest rate is charged on your loan amount with zero hidden charges.

What about credit card cash advances?

Credit card cash advances in Singapore

Credit card cash advances in Singapore. A look into the definition and misconceptions on credit card cash advances. The things to look out for.

Credit card cash advance is based on your available credit limit on a credit card rather than your monthly income. A credit card cash advance is generally treated like a purchase made with a credit card and the repayment terms are strict.

A cash advance on a credit card may or may not offer you a better deal than a payday loan depending on your own credit ratings and whether you are credit qualified. Some credit card companies charge higher interest on cash advances as compared to payday loans offered by moneylenders.

Cash advance loans comes with your monthly credit card bills and are to be repaid accordingly. Interest is compounded daily and they require a substantial application fee when you request for a loan.

There are hidden charges on loan amounts which could be transaction fees, late payment fees, card fees, withdrawal fees, setup fees, bank service fees which the borrower might not be aware of.

To make matters even worse, many credit card companies require you to pay off any existing non-cash-advance balance (the normal purchase you make) that you might be having on your card. This means that they force you to pay up the amount with lower interest rate first, while the cash advance balance remains untouched, with the amount owed increasing and compounding interest.

Credit Card cash advance fake cheque technique

Credit Card cash advance fake cheque technique

Ever received a “credit card cheques” from credit card companies in your mailbox? Cheques offering a big lump sum to you? This is one of the biggest misconceptions faced by people. These “cheques” are treated as credit card cash advances by credit companies and it comes with all the accompanying disadvantages. People will feel it’s easy credit, but not realizing the multiple charges on such a loan.

In Singapore, credit companies cap the maximum loan amount based on their credit limits. Cash advances charge hefty interest or finance charges from day one of the loan till the day payment is made in full.

They do have their advantages, whereby the borrower can withdraw cash at the credit company’s ATM or request for loans to be transferred to the borrower’s own bank account. Some offer loan application via phone (cash-on-call) or SMS.

As a rule of thumb, hefty charges can be avoided if you pay the full amount on your credit card statement every month. Ask your card issuer to explain how interest is computed and to provide you with a case study loan amount.

Comparison and Outcome. Choose Wisely.

So what’s the best course of action for a borrower? At times, payday loans could have higher interest rates than credit card cash advances. This is due to moneylenders face higher risks of not being repaid.

However, if you have been a repeat customer with a great history of prompt repayment, licensed moneylenders would usually offer a better rate or repayment policy for you. You could also discuss with the loan officers and they will advise on  a repayment plan for you.

Payday loans offer great flexibility in terms of repayment policy and if repayment time periods are a consideration for you, you are much better of with payday loans. Payday loans also offer no hidden charges and allow lower-income people who cannot get a credit card to take up a loan.

Choose wisely based on your loan requirements and make the right choice for you. Regardless of which loan offering you are after, do your research wisely, check reviews and check out the competitors.

Should you require better advice or have any doubts on loan offerings, feel free to drop a message to us or a phone call and our friendly loan officer will service you.

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Santa having money problems; Requires loan

Understanding and getting instant payday loan

As the rapidly growing economy moves, more citizens are dealing with the economic and social pressures that life presents. Technology is changing and adapting towards this ever-changing landscape. When taking a loan for meeting some urgency, always ensure that you are able to secure the loan in time before the collateral charges are applied to your bills. Hence instant online payday loans are designed to allow extremely quick approval without any hurdle posed by the moneylender.

The best way to find the right moneylender, is to first find what each lender offers and what terms are tied to their offerings.

This allows you to set the amount of cash you need and the repayment terms for each loan, when you are prepared to apply for a loan.

Legal and Secure lender

Always look for a trusted, renowned, and legal moneylender. It is important to do so as this allows you to have the best terms to cash loan tie-ins with lenders. It is also very important to check out on client’s reviews of these money lenders if possible. You would want to find one that is providing good service and products with good customers reviews.

Understand and plan loan terms

First do your own research online and find instant payday lenders that offer affordable fees and good terms. Lenders also need to have good reviews and reputation online, at the same time offering flexible repayment terms for your loan requirements.

Choose lenders based on your loan amount

By determining the amount of money you want to loan, lenders might adjust their repayment terms accordingly. For example, should you require a higher loan amount as compared to the average, lenders will placed you as a high-risk borrower and require you to pay higher interest rates or change their repayment timeline. Hence always plan your loan amount and adjust it accordingly to your repayment capability.

Getting instant payday loans within 24hours – No frills

Getting online credit is simple. A simple online application form will allow your request to be placed withe lender. For online applications, it is important to fill in the basic details correctly as this speeds up the approval process by a lot. You would not want a staff member to misread the loan application as it would lead to unnecessary delay of the loan approval.

These loans can be easily applied through an online application in a lender’s website.

It is greatly convenient to apply loans online or contact the loan officer to assist you. The loan process usually takes less than 1-2hours and is done with the borrowers going down to settle the required paperwork. Once the paperwork is settled, a cheque or cash will be issued accordingly.

There are several benefits of payday personal loans over a normal loan and some of the key highlights are:

1. Loan applications are reviewed fast typically within 1hour, and immediate approval once it’s processed.

2. Repayment terms are better and rates are lower as compared to longer or larger amount of loans.

3. Save time and face. Online payday loan application is fast and can be done by filling in a few questions which can be done in a couple of minutes. This saves the initial paper work time required and you will get your loan quotation.

Quick Tip

Always ensure that you pay off the loans in time to maintain good credit rating scores. At the same time, this prevents rolling over interest rates on your payday loans as it can amount to quite a high amount if one is not careful with his repayment plans.

If you require clarifications on anything, always call the company and ask the loan officer. They should furnish you with details on your queries for loan applications. Check our FAQ for more up-to-date info.

We at Empire Global can arrange for fast cash advances for emergencies that requires immediate attention. You can get instant cash by applying for our same day payday loans. We have garnered great testimonials from our customers on our service and quality advice. Do check out our Google+ Business Page and see what others have written about us.

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Payday loan – Everything you need to know

Repayment plans – Choosing the right one

 

Applying Online for Payday Loans

Why use an online payday loan service?

Credibility & Reputable Lenders

It’s especially important to find a payday loan service that is scrupulous, honest and has a good reputation for treating its customers with sound advice. One of the primary things is reputation and with that Check their online reviews! So read about the profile of money lenders online, and choose them wisely. Browse through the many directories on money lenders online. Our favourite one is http://www.sgloansdirectory.com.sg as it provides a comprehensive coverage of money lenders around Singapore.

What about Online Payday Loan application

Here’s some of the top reasons people apply for a payday loan online:

Save Time: With the internet bringing you fast information, you no longer need to read the papers for a money lender. A quick search online will allow you to find a reliable money lender for a payday loan online. There are many reliable directories even for such financial services. A popular leading directory is  http://www.sgloansdirectory.com.sg

Save Money: Sometimes bank charges, overdraft fees, over credit-limit fees or late payment fees gradually add up to more than it would cost you to take up a payday cash loan to repay your bills.

Save your Credit Reputation: Service providers look at your credit reputation with them and may cut off your basic needs if you have a bad credit reputation. Credit card companies look into your credit history too when you want to apply for a new credit card or requesting a higher credit limit. This is why its important to repay back your bills promptly and keep a good credit reputation.

Save Your Face: No one likes to ask for a loan from someone. Especially family members, friends or an employer for a cash advance. With a payday service, one can repay bills without additional strains to relationships.

What can I do to prepare myself for financial emergencies?

No one can always predict an emergency, but you can be prepared for one. Ideally, you should have emergency savings set aside to cover your household expenses for at least three to six months. If this goal is too high, aim to save at least one month of your salary. Now that you know more about payday loans, you can decide the kind of loans to suit your needs.

Payday loans can suit consumers who need emergency cash advances for a brief period of time. Although it could be pegged with interest rates higher than banks. But if you understand how to use a payday loan correctly, you can make the most of these services. Hence apply for payday loans appropriately and responsibly as a payday loan may be more affordable than the alternatives in the market. Read more on everything about payday loans.

You can now apply online with us at Empire Global just by filling in the loan application form.

 

Budget 2014 Singapore and how it affects money lenders and borrowers

Budget 2014 Singapore for Moneylenders & Borrowers

Budget 2014 Singapore. How does it affect a borrower? 

Bishan – The no. 1 important question in the most anticipated current affairs of Singaporeans and businesses in Singapore. From the wage workers to the highest salaried white collar people. From small businesses (SMEs) to large corporations (MNC). Budget 2014 Singapore affects everyone in every way.

This is why we have this special article on Budget 2014 Singapore . How it affects us as borrowers and money lenders alike   in Singapore. Singapore’s Law Ministry new plans this year’s Budget 2014 Singapore. In order to avoid unlicensed  moneylenders from exploiting lenders, here are some of the measures in place this year.

  • The Singapore Law Ministry intends to establish a new central credit bureau. This bureau will allow “tighter controls” over the total amount of unsecured credit an individual can borrow.

  • A review of the interest rate cap and considerations on further restrictions on fee charges (early redemption, loan termination charges)

  • A new regime that will allow bankrupts to be discharged within clear timeframes.

Here’s what the current fee structure officially on  IPTO (Insolvency & Public Trustee’s Office) .

From 1 June 2012 onwards, money lenders are only permitted to charge six types of fees:

  • For each occasion of late repayment of principal or interest;
  • For each occasion the terms of the loan contract are varied at your request;
  • For each dishonoured cheque issued by you;
  • For each unsuccessful GIRO deduction from a bank account, as payment to the moneylender;
  • For early redemption of the loan or early termination of the contract; and
  • Legal costs incurred in the recovery of the loan.

Any other fees are not permitted, and are hence not enforceable by the money lender.  An official guide can be found from IPTO for further review

Why the need for change?

Primarily, the number of complaints against moneylenders have been on the rise. Recent news of money lenders in heartlands (Toa Payoh and Ang Mo Kio) have triggered a spate of concerns on easy credit. As compared to the past where they usually operate from areas such as Chinatown and Beach Road. Recent cases of errant money lenders have been sprouting out. Some examples are those who have been furnishing false information  or those granting limits above the standards.

The future in Budget 2014 Singapore?

In short, moneylenders will be having tighter rules on lending policies. Fee charges review. And a new bankruptcy policy. And how does it affect you as a borrower?

For the uninformed borrowers, it becomes tougher for bad money lenders to accumulate charges on the borrower. A better way to borrow money from licensed moneylenders. With this in mind, you will make a better choice in choosing your next payday loan or foreigner loans.

How Budget 2014 Singapore affects moneylenders?

Budget 2014 Singapore affects money lenders in several ways. The new schemes allow better ways to establish moneylending.  It allows money lenders to establish a better understanding of the situation and a better relationship with the borrowers as they can better control their limits. Borrowers will benefit from a better fee structure. Are you affected in this year’s Budget 2014 Singapore? Share with us on how it has affected you . 

How Budget 2014 Singapore affects borrowers?

With the new schemes it will allow borrowers to be more educated and informed. Borrowers can benefit from the new fee structure and limit caps. This prevents themselves from underestimating their loan amounts and repayment policies.

What is going to happen to Empire Global?

At Empire Global you as the borrower, are our customers. We offer better flexibility in terms of overall policies and fees. We have long anticipated this move by the government. The rampant growth of moneylenders in Singapore has led to increasing numbers of unethical moneylenders gaining from the stress of borrowers.

We at Empire Global want to prevent that. We have continually improved our service quality to differentiate out from the rest (illegal money lenders, unethical licensed moneylenders) and constantly learn from our borrowers to better service them.