Loan Article Resource Blog

Applying for a Singapore Loan

Posted in Loan Services by elitemoneylenders on February 15, 2012
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Emergencies, unforeseen expenses and unexpected opportunities can all be good reasons for seeking out a loan. For individuals needing a Singapore loan, the Singapore Government office of Insolvency and Public Trust publishes a guide to selecting a lender, repaying the debt and protecting oneself and family in the event of having problems with a lender. Although the advice is specific to Singapore, much of it can be applied to selecting a lender and responsible loan management anywhere.

First, it is important to select a licensed money lender from whom to request a loan. Licensed lenders are required to pass exams and they must renew their license to lend money yearly. Renewal of their license depends upon “good behavior” so it is in their best interests to maintain a professionally correct relationship with borrowers. The exception to this might be if the borrower requests a payday loan from an employer. Employers who allow payday loans can be granted an exception to being licensed.

Second, the document issued by the office of Insolvency and Public Trust details things a person seeking a loan should check before signing an agreement and accepting the cash. These include: interest rate, and how it is calculated, repayment schedule, personal funds and means of repayment, consequences if unforeseen circumstance prevent timely repayment.

Third, the document instructs loan recipients in steps to take if they find they have a problem with the lending company. First, they should avoid any company that uses threatening language or implies any kind of threat during the application process. Second, if the loan company makes any threatening comments or suggestions, the loan recipient should notify the Money Lending Registry or the police right away.

Finally, borrowers are cautioned to borrow only the money they need and that they know they can repay. The amount that can be legally borrowed by loan applicants is detailed according to income. The document lists the information that the borrower should keep on hand as well as things the lender should not do. One of the things that a licensed lender is not allowed to do is to retain personal identification papers such as a driver’s license or passport. Nor should lenders request personal passwords to any financial account, such as their bank account or their SingPass account.

When obtaining a Singapore loan, recipients should receive courteous treatment and a written copy of all the loan papers.

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