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.
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.
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.
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.
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.
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.
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.
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.
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