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?
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.