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Get Low Interest Rates on Personal loans

Get Low Interest on Your Personal Loan

There are many different types of loans and different schemes that are tagged to each loan type. This may confuse borrowers who are seeking out the best loan type on their loan. Today, we discuss about how to get low interest on your personal loans.

Personal Loans Demystified

A personal loan may very well be the best loan type when emergency cash is needed. The fast service and fast cash advances provided by money lenders allows you to put your mind at ease.

Repayments are worked out mainly based on your salary and some other factors. Hence its still possible to get low interest on your personal loans.

As personal loans are mostly unsecured, borrowers in Singapore will not be required to put up any form of collateral or mortgages to take up a loan.

Low Interest Loan Factors and Eligibility

As mentioned, the major factor in determining loan eligibility largely lies in the borrowers’ source of income and income level.

The higher a borrower earns, the higher the loan amount that a borrower is able to get. This main factor determines the increased chances of loan approval with low interest rates and is common in both banks and money lending institutions.

A common practise is that most banks and money lenders will allow borrowers to lend up to four times 4x of the borrower’s monthly salary. Further which, if a borrower is able to show that they are able to repay loans on time, the personal loan contract could be better.

When a Loan Offer is too Irresistible

The revision of the Moneylender Act in 2010 has led to money lending firms to start in neighbourhood and suburbs. They offer a variety of loan services.

However, it’s noted that the rulings and the increased number of money lenders with bad practises and many new unlicensed moneylenders who sometimes claim that they are licensed. These errant lenders target on borrowers who needed cash urgently hence landing themselves in bad loan debts.

More often than not, errant lenders will offer extremely low interest rates but implement fees or give difficult repayment terms that the borrower can’t match up.

Make Loan Comparison Before Borrowing

Always compare. That’s the simple rule of a consumer. There are varying personal loan interest rates from different financial institutions hence compare and choose amongst those with low interest rates.

Find out their loan offerings and as a borrower, best in mind your debt servicing ratio. This is the total amount of debt (monthly repayments to all your bills) in comparison to your total income.

Make Loan repayments on time & know your debt servicing ratio

Make Loan repayments on time & know your debt servicing ratio

This calculation technique allows you to check whether you are able to incur more debt and whether you are able to meet your monthly repayments on your personal loan.

Most importantly, check that your debt servicing ratio does not exceed 50% of your total income. Otherwise, banks and lender might not allow you to take up the loans or offer you a higher interest rate instead.

Get the Right Money Lender for Low Interest Rate Loan

Once you have fully considered your debt amount and the monthly repayments you can manage with, plus your outstanding debts owing each month, then you can finalize your decision on getting the right licensed money lender.

Get the money lender that offers the best low interest rate on your personal loan in Singapore.

Ensure that the lender is reliable and honest with you. The loan officer will well advice on your loan amount, interest rates and repayment amount and schedule.

Ensuring that the money lender company is trustable and licensed is very important. Most licensed lenders will work out the repayment package to best suit your current needs.

Go to a money lender with good reviews and rose your time to compare the loan interest rates between companies.

As a borrower, ensure that you meet the repayments on time!

If you have the time flexibility, choose wisely on the money lender you are getting for your personal loan.
Be careful and read the credit terms

Be careful and read the credit terms

Read their loan contract terms and understand what you are signing up for.

Use our online loan application form too and our friendly loan officer will best advise you on your loan.

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.

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.