Learn about personal loan and how to leverage on its advantages.

How to Use Personal Loan to Your Advantage?

Personal loan is readily available to anyone via multiple financial institutions such as banks and moneylenders. With such flexibility, it also meant that individuals now have the capability to spend first and think about the consequences later. But as the cliché saying goes, with “great power, comes great responsibility”. So here’s how to borrow responsibly so that you don’t regret your decision later.

Always Borrow for Needs, Never for Wants

There are a few reasons why people would end up over borrowing on personal loan and it almost always have to do with materials wants rather than need.

It was recently reported in the news that a couple landed themselves in more than $100,000 worth of debt with personal loan after their wedding.

While marriage is a once-in-a-lifetime affair and many dream of having a dream wedding, planning one without the consideration of cost will guarantee to kick-off your marriage with a rocky start.

Here’s what Mr Lee, 35, told The New Paper,

“We have had more fights since our wedding than in the six years that we were dating.

Most times, it was over money… and we’d end up blaming each other for the situation.”

So, how we can make sure we don’t land ourselves in such a situation?

Plan Your Personal Loan Carefully

Reasons why people tend to over borrow is because they plan with the mind-set of achieving a material want. We often tend to convince ourselves that we will be able to take care of the debt later on when all is over, but it has been proven over and over again that it’s not the case.

Once you have land yourself in debt, you will find it harder to keep up with your current lifestyle with a smaller amount of budget every month. And more often than not, you will borrow to fulfil that particular lifestyle, landing yourself in even more debt.

Such as the case of a couple who landed themselves in debt after their marriage and proceed on to buy a five room flat and had a child. They got so much debt that it threatened their marriage.

So instead, when planning for major life events, such as buying a flat or having a child, always try to plan your finances beforehand. Sit down with your partner and separate items between wants and need. (e.g. do you really need to hold your banquet at a hotel instead of a restaurant?)

By carefully listing out the items, you can then successfully plan for what is essential, and if necessary, take on a personal loan to achieve what is needed.

If you are only asking for a small loan, your friends and relative might be able to help

Instead of going to financial institution, which charges for interest rates, you may try approaching your family or friends for a personal loan.

Most people are wary about lending to their family because they are afraid of the awkwardness when it’s time to ask for their money back, and also the possibility that they won’t.

However, if you can work out a weekly or monthly return plan, they might just be willing to do so.

So, our advice is to never take on a personal loan for a material want because you tend to overestimate your repayment ability. And even when you need one for a need, make sure you have a plan on how you wish to make the repayment.

Learn about Personal Loans in Singapore and how to get a personal loan

Learn Personal Loans & What is a Loan Company in Singapore

More often than not we get asked what is a personal loan and how do we differ from a bank in Singapore. Basically licensed money lenders just work similarly to banks here.

So what is a personal loan company in Singapore really mean and how does the personal loan work out from these money lenders.

Looking for a personal loan company? When exactly?

With the current cost of living rising and jobs being harder to find, more and more people who aren’t so prudent with their finances end up in debts. When one’s financial situation gets out of hand, one turns to friends or families and if that doesn’t work out, you turn to banks.

At times, a person’s credit report or rep sheet is not so great and in turn there’s the licensed moneylender option.

So how does one know that a company operating a licensed money lender is good? Do what a shopper would do. Check out their personal loan rates, ask for their best loan terms & loan period.

Do not forget to ask about the effective interest rate. And just do a simple comparison of what you have.

Lender policies differ between lender to lender, more often than not its the loan terms and interest rates that sets them apart.

Some lenders will be able to offer a flexible personal loan period to suit your needs even. Always shop around and of course customer service plays an important role.

Even us at Empire Global want you to compare. You can easily submit a loan request to us through our online personal loan application. We will get back to you in the quickest time possible on your loan terms.

What determines the personal loan offer you get in Singapore?

Personal loan in Singapore and the how to get a loan

Personal loan in Singapore and the how to get a loan

Although money lender have different personal policies, the main factors remain. Companies like us will look at the type of loan you want, your loan period, your base salary.

Loan specialists will evaluate your financial status and recommend a suitable loan amount, rate and tenor based on your financial needs and ability to repay the loan over time.

Scams from Unlicensed Moneylenders

Believe most of you have read about moneylender scams and loan sharks trying to taunt you to pay up.

These online and offline harassment techniques can certainly be irritating. Some come in the form of SMSes that start out with “OWE $ PAY $”, including a “lovely” expletive and ending with “I SURE COME LOCK AND BURN YOUR HOUSE TONIGHT”. That makes one big bad wolf.

Luckily for us, the Singapore government has been tough on cracking down such cases. Licensed moneylenders found to using such techniques will get their licenses suspended or face a hefty fine.

Licenses of moneylenders have become lesser, as some licensed money lenders end up losing their licenses due to bad practises. Loan sharks and unlicensed moneylenders cases have been facing a lot of heat as the police cracks down on them.

There’s lots of publicity on it and the police has taken an active role in educating the public at large.

Foreigners Seeking Loans: Enter Foreigner Loan

Although there’s banks and financial instituations,  there are a lot more restrictions in place when they provide personal loans.

If you are a Singaporean or a PR that doesn’t earn more than the $20,000 /yr quantum, it can be quite tough to get a loan.

Furthermore if you are a foreigner with less than $45,000 annual income it gets tough to borrow from the banks. So most of the times, foreigners approach licensed money lenders for a take on loans.

How Much Can you Loan?

As mentioned earlier, if your annual income is less than $20,000, it’s tough to find a bank willing to provide an unsecured loan for you at the best possible rates.

However, most licensed money lenders will be able to legally loan you up to $3,000. If you are earning more than $20,000, a licensed money lender can then loan up to 2 to 4 month’s of you salary. Which is why we ask for a proof of salary at times. The loan amount depends on your repayment period too.

Do contact us if you require a personal loan.

When Are Personal Loans a Good Option?

When Are Personal Loans A Good Option?

Personal Loans Applicable for Businesses?

With startups on the rise in Singapore, churning different concepts ranging from technology to F&B (hipster cafe joints). Businessmen and investors are now more than willing to try out their ideas, and as an operating business time is never on their side. We know that through our own experience at Empire Global that with the many issues involved and a need to have a good financial cash flow especially when we are in the business of money lending. This is when personal loans come in handy.
This is because even with a good business plan, good directors and advisors in the company, one would still need to churn out the initial financial burden involved in starting up a company. Bills, salaries, running operating expenses are a constant hit for new startups.

What about Personal Loan Singapore? Viable?

As with all loans, a certain portion of risk is involved when one takes up a loan. Singapore as a business hub brings ease to setting up businesses. Financial instituations like banks and moneylenders are competitive in this field of loans. Same like us at Empire Global.
For startup entrepreneurs, a personal loan might be a good option as the initial team and operating expenses are kept small. Hence personal loans provide the flexibility to use the loan amount for any purposes you deemed fit. Whereas a business loan would be pegged to your business abilities and assets. Some look at the age of business to qualify the business for a loan.

Affordability of Personal Loans

In Singapore, personal loans come in different sizes big and small to suit the varying financial needs of individuals and businesses alike. Personal loan offerings are starting to be the more popular choice for borrowers be it borrowing from banks or moneylenders. As an individual can use the money to pay for a variety of items, including their car, electronics, debt consolidation and so forth.
Small Business Operating Expenses

Small Business Operating Expenses

This becomes a popular choice offering for businesses alike as the loan amount can be paid out to a variety of channels. Repayment periods are usually monthly fixed on a agreed upon day of the month. Interests rates are fixed unless a longer repayment period is negotiated upon with the loan officers.

Should I Get a Personal Loan?

Like with all loans, it depends on your pressing needs and circumstances. If you have a urgent need for cash and don’t have any existing assets, but own a credit card then it a personal loan would be a better choice. This is due to the higher rates charge for credit card cash withdrawals.
Need money in a hurry, and want to forgo tedious documentation? Need cash without a specific reason? Then personal loans would be the choice option.

In Summary: Key Advantages of Personal Loans

Flexibility of use: Personal loans are versatile and multipurpose. They can used with  a variety of purposes, be it travel expenses, medical expenses or purchasing equipment for business.
Quick Availability: Getting loans is usually fast. Submit online quote requests to moneylenders like us at Empire Global or submit application forms through banks. It is extremely effective if you are looking for emergency funds.
Minimal Documentation: Typically, personal loans require one of the least documentation unless you have bad credit rating.
Essentially, weigh out the advantages of the the various loan types available before deciding on choosing a personal loan. There could be better loan options available so do your research before signing on the dotted line.
We strongly advise our clients to tell us about their money needs and we will provide the best loan option and suggested repayment periods. This allows our borrowers to achieve the best loan rates and repayment periods.
At Empire Global we offer our customers professional legal financial assistance in a variety of loan formats. If you are looking for a legal loan provider in Singapore, we offer reliable and effective solutions for your needs. We operate as a licensed moneylender company in Singapore.
Getting personal loan for short term? Let us guide you.

Getting a Personal Loan For Your Short Term Needs

With the economy picking up slowly but steadily for sure, banks and money lending institutions are kickstarting their lending business in an aggressive manner. Prior to the launch of the Do Not Call (DNC) Registry, most of us even we at Empire Global gets multiple calls from banks promoting all the different loans and throwing in all sorts of freebies to sweeten the deal.

You might have even received cheques that state a pre-approved loan amount and all you need is a phone call to the respective company. Well all these have been cut short and certainly much lesser seen now.

You might wonder why personal loan are effective for short term too? Let us tell you more.

Loan Flexibility

There are many specific loan types Eg. Education loan, renovation loan, car loan. Unlike these categories of loans where the usage of funds is clearly defined, you get much more flexibility on the usage of spend with a personal loan. It’s a sum of cash that you can use it for any purpose. When you take up a car loan, its strictly meant for the purpose of financing a car. Furthermore, specific loan types are usually paid directly to the seller and you won’t have access to the physical cash on hand.

Coming up Short on Cash? Use a Personal Loan.

A Personal loan act as temprorary bridges if you are coming short on cash. For example, you are awaiting a home sale proceeds or pending an investment fund release of cash. These are uncertain periods of time whereby you might be short on cash. Personal loan are ideal for those who have temporary shortage on cash. Like a pending home property sale of their current apartment and not wanting to miss a good property in the market. A personal loan comes in greatly to make up for the shortage in cash-flow and offering reasonable interest rates.

Coming short on cash is Terrible. Use a personal loan.

Coming short on cash is Terrible. Use a personal loan.

Having said this, personal loan should be used with caution and not for luxury purchases and splurges. A personal loan like any other loan is to tide over a certain period of time for a certain cause and not for an individual to indulge which will result in large repayments if one is careless.

Another great example is that you can use this amount of cash flow to generate new funds . Then a personal loan is a great and convenient way to bridge this kind of short-term financial requirement.

Loan ceilings are typically large than payday loans. As payday loans ceiling largely depend on an individual salary income.

Some side advice if you are selling/buying a new apartment; use a cash cheque instead of credit cheque and ask for some benefits from the property agents. They would be more than happy to do so

Learn more about personal loan in Singapore

Learn how to Be a Good Borrower

Personal loan come with slightly lower interest rates and unsecured nature provides a good way to teach someone to be a good borrower.
Fixed repayments each month makes the borrower repay a fixed a amount on the stipulated date. Furthermore, timely repayments of loans ensures that it maintains your good credit ratings.

Previously we mentioned on checking your own credit ratings with a $5 quick check in the Credit Bureau

Approval is fast as Always.

As with loans, personal loan are one of the fastest to be approved. Be it from banks or money lenders. This could prove to be an attractive offering for you if you need the loan amount fast. Time to be approved can be further discuss with the loan officers too. This is one of the highest request we get at Empire Global.

Get a Personal Loan If You Need One

Having mentioning some of the benefits of personal loans, they are only good if you don’t live beyond your means as it can be disastrous if you fall into a debt trap. We as moneylenders wouldn’t want that too!

Be confident and sure of your financial status. Ensure you repay back the repayments on time and you will be safe! Next up we will look at the Personal Data Protection Act and how it is shaking up the industry and why you should be aware of your rights.

Understand and learn about how to get a personal loan in Singapore

How to get Personal Loan in SG

Still stumped by interest rates of personal loan in SG? Need to get a personal loan in SG? Personal loans are at times referred to as unsecured loans which are personal loan without the need for security, collateral or guarantors. There are lots of personal loans providers which include banks and lending companies like us at Empire Global. So what are the few ways that one can get a personal loan in SG for fulfilling all your dreams and desires that you put on hold?

Understand first. Why you should care about Personal Loan rates?

Like we have explained previously, interest rates can get quite tricky and can slip pass the mind of borrowers. Borrowers might have gone on the urge of borrowing and forget to calculate the effective interest rates of the loan amount. One should fully understand the loan repayment amount and the effective interest rate of a loan sum. This will enable them to make better judgement of their own financial standings.

For example, if you plan on getting a renovation loan do look for a provider of renovation loan package instead of taking up a personal loan in SG. What’s the difference you may ask? It’s most advisable to go to the most specific loan type that you need. This usually results in a better interest rate or something better to match your needs. Why so? This allows lenders to “think less” about your repayment and the terms and conditions of a loan plan. The more specific you are with your money needs, the easier life the lender has.

There’s intense competition amongst lending institutions here, hence the interest rates, repayment policies and the many applicable terms and conditions vary greatly. So do shop around to find one that best suits your needs.

Read more on Understanding Personal Loan & Interest Rates

Check your own Credit Rating

One of the basic thing you can do prior to borrowing is to check your own credit rating. This is usually applicable to those who have defaulted on payment terms of bills, loans, credit cards or those declared bankrupt or cleared of bankruptcy.

If you have repaid properly, the credit rating should be good still. However if you are still servicing those payments, it is most advisable to check your credit rating and ensure that you are at least eligible to borrow.

Read more on Credit Rating and get it check 

What determines a Borrower’s eligibility?

If you are applying for a personal loan in SG, the biggest ranking factor to determine the loan amount a borrower is eligible for is their source of income. Typically in general, most banks will lend up to four times the amount a borrower earns on a monthly basis.

Get Personal Loan from Banks

There’s a big competition between the different banks providing personal loan services. Some have created apps for borrowers convience. A frontrunner in using technology for loan services is the new Dash Advance app created by Standard Charted providing personal loan in SG. This shows how competitive the industry is.

At times borrowing from banks can get tricky too. Why so? A simple thing like  a late repayment penalty is often overlooked by borrowers. This is because no one wants to pay late. And this is where the institutions can play it up to their advantage. Mess up a repayment once and you just might get your interest rate increased . Late fees can be quite substantial too. It is totally unlike a credit card late fee of $50; the penalty might be much steeper.

When banks that you have shortlisted are offering comparable packages, you should next look at their penalty fees and administrative fees. Basically pick the lowest interest rate provider and if there’s a tie, pick the one with the less “painful” penalties.

A basic set of information is required such as your NRIC, income documents (CPF statements, income tax statements) should be readily at hand before approaching these institutions.

Get Personal loan from Licensed Money Lender

With major financial institutions providing personal loan in SG, there are another group which are the licensed money lenders providing an alternative for borrowers. With much lesser fine print and more straight forward loan application process, borrowing from licensed money lenders can at times be a wiser choice.

The loan process is much faster and usually hassle free. Interest rates are highly competitive too and some of the best options are their flexibility in repayment plans. You can talk to the loan officer to draft a repayment policy to best suit your needs. Approval rates are typically higher and at times you are able to receive the cash amounts in a day or two.

However as there are quite a few unscrupulous lenders out there, it is a necessity to have a copy of the contract or loan terms when you sign up for a loan. Avoid those that easily approve your loan application without any legal contract. You can also check the company’s license by visiting IPTO. Money lenders who violate the laws set upon have their license revoked almost immediately. This ensures that the licensed money lender industry is kept legit and safe.

Getting it right for a Personal Loan

As repayment periods are usually longer with personal loan in SG, one has to be careful in borrowing and be clear about financial repayments needed. Loaning money is not a way to cover luxurious lifestyle. Identify the loan package that best suits your current financials and the lender. The loan process can get frustrating and your application might even be rejected, but do be careful when applying for a personal loan in SG. Ask questions and clear as many doubts you may have before signing up for a personal loan in SG.

Not to forget, too many loan applications can ruin your credit and obliterate your chances of getting one in future as it affects your credit ratings. Having too many applications makes you look desperate or in financial difficulties. As a result, lenders will see you as a credit risk and less likely to approve you.

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?