Loan Article Resource Blog


Tips on choosing Money Lenders

Posted in Loan Services by elitemoneylenders on March 27, 2012
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Financial problems can cause much stress, let alone the stress of choosing the right money lender. There are numerous money lenders out there all advertising to give the lowest interest rates and the longest terms. This makes the selection process for Singapore loan even harder. For those contemplating on getting a quick loan from a money lender, here are a few tips in choosing the right one.

First and foremost, it is important to make sure that the company has the appropriate licenses to operate. Licenses and certifications from the government can give a potential borrower the assurance that the company is complying on government imposed laws and rules. It is also best to check with the local government regarding the authenticity of these licenses. One must also check if the company is registered with organizations or councils of money lenders. These organizations or councils also take care of the welfare of borrowers.

A potential borrower should also check the place of business. A legitimate money lender will have a formal office set up as well as office staff. This can give a good impression if the business is a legitimate one or just a scam. Visiting the place of business can also give the opportunity to speak with the sales person face to face, rather than just conversing through email or phone. This can also work to the advantage of the borrower as he can personally negotiate the terms of his loan.

Lastly, it is still best to keep all options open and gather as much information from different money lending institutions before making the decision. Before visiting the place of business, one can gather a lot of information on the internet, including the requirements to be submitted. One can compare the terms and rates offered, or he can seek the advice of someone who knows more about the subject. Once he has narrowed down the selection, he can now visit the establishment personally and apply for a quick loan.

Although it can be quite tempting to just borrow money from money lenders that offer huge cash outs and require very minimal documents, one should be wary that these companies may impose huge interest rates as well. Remember, if it is too good to be true, then it probably is. Choosing the right money lender for a Singapore loan will certainly help a person to get some financial breathing space and avoid getting him buried over huge debt.

 

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Singapore Personal Loans for Foreigners

Singapore – the very name breaths mystery. Since the early days of the British Empire, Singapore has been a hub of industry, a land of fast-paced buying and selling. People from many places in the world, foreigners to Singapore, come there for many reasons. They may be tourists or business people whose jobs have brought them into this small country.

There are many reasons why a foreigner may need a personal loan while in Singapore. They might need a car or money for an investment. They may have over-spent and find themselves without a way home. Or they may have a medical emergency. Being in a foreign land without funds can be a frightening experience. This is where a Singapore personal loan for foreigners can come into play.

Borrowing money should never be approached lightly; borrowing in a land not your own should be approached with extreme care. First of all the borrower should make sure that the lending agency is a licensed money lender or a business that is registered as being exempt from needing a lending license.

In 2008, regulations were passed to govern money lending. As a result, the Ministry of Law in Singapore publishes a list of all licensed money lenders. Such agencies must renew their license yearly, and the renewal depends upon good behavior. Exempt businesses may lend money to workers in the form of payday loans or to shareholders. Before borrowing, a foreigner needing a personal loan should make sure that the lending agency belongs to one of these two groups.

The borrower will need to provide proof to the lending agency that they have an income or some means of assuring repayment of the loan. This may be more difficult for tourists than for workers. Such assurance may come in the form of personal assets or proof of income, such as pay slips.  It may not ever take the form of the lender keeping personal papers such as a driver’s license or passport.

Borrowers may find it easier to obtain credit from international lenders, such as HSBC, who have offices in their home country as well as in Singapore. Regardless of the lending institution, they need to pay close attention to the repayment schedule, interest rate, and type of forfeiture should they be unable to pay the loan for any reason. The Singapore Ministry of Law offers counseling services to habitual borrowers who need assistance in developing a responsible financial plan.

Singapore Payday Loans

Payday loans, anywhere in the world, refer to short-term unsecured personal loans. They may be obtained from two sorts of establishment: one’s place of employment, which can issue the loan as an advance upon an expected paycheck or a regular money lending institution.

In Singapore, a business does not have to have a Money Lending license to issue a loan against a future pay check. However, the business must register as an exempt lender in order to make loans of this nature to employees. Regular money lending institutions must be register with the Singapore office of Insolvency and Public Trust as a money lender. They must meet stringent requirements to receive and maintain a license for their business in order to make a Singapore loan.

Before applying for a Payday loan in Singapore, check to make sure the lender is registered as a money lender or as an exempt lender. Read the repayment terms – rate of interest, calculation of interest, and due date for payment carefully. This avoids surprises when repaying the loan.

A common problem with payday loans is that the borrower requests the full amount of a pay check or a major portion of several checks, leaving nothing on which to live. This causes him to borrow more money, creating a downward spiral of financial indebtedness. Singaporean law sets a limit on the amount that can be legally borrowed as a payday loan. Singaporean Ministry of law also offers counseling for habitual borrowers to help them break the cycle of credit dependency.

With that said, payday loans can meet the need for quick cash for unexpected expenses or opportunities. Repayment is usually set for the next payday. However, the interest rate may be higher than that on a standard loan, particularly if the repayment of the debt is not met in a timely fashion. Borrowers should realistically assess their ability to repay the loan before signing any agreement with a lending institution.

Lending institutions should check borrowers’ credit rating and other particulars before issuing a loan. They should also be on the look-out for people who have become trapped in the payday credit cycle and point them toward the debt counseling services available through the Ministry of Law. Quick credit can be a valuable tool in an emergency, but can become a trap when used too often. A Singapore loan is no exception to this sound financial rule.


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