Getting a loan from a bank may perhaps not be simple and at times you really need an emergency loan with fast approval time to address an emergency expense. Unsecured personal loans fromlegal money lenders in Singapore may be the very best alternative in certain situations.
Some customers may have financial demands for a renovation loan, school fees, emergency medical fees, vacations or some unexpected incidents which call for urgent financial needs.
Securing A Personal Loan from a legal and licensed Money Lender InSingapore
Just before taking a personal loanfrom a licensed money lender, we suggest you to study further about the Money Lenders Act in Singapore. As a borrower, you rightsare guarded under the law in Singapore– have a look at this guide to borrowing moneyfrom money lenders in Singapore prior to taking a personalloan.
New Regulations For Money Lenders In Singapore (Effective Oct 2015).
New regulations for money lenders are incorporated to lower a borrower’s borrowing cost (interest rate) and also to manage the number of default payments. As aconsumer, it is sensible foryou to know the details with regards to administrative fees, contractual terms which are unjustifiable to you, dishonest andunfair money lending practices and the interest rates for your money lending contract.
The new regulations imposes a cap of 10% maximum upfrontadministrative fees, 4% maximum nominal interest rate (NIR) eachmonth, 4% maximum late interest rate per month, loan payment late fees being capped at$60 per month, no other additional fees allowed to be charged by any money lender and acap on borrowing cost.
Choosing A Money Lender In Singapore.
Before you take a personal loan from a money lender, ensure that the money lender is licensed in Singapore. Once you haveshortlisted a list of money lenders, do your due diligence and check out themoney lender’s reviews online.
Securing A Personal Loan With a Money Lender.
You need to be hired and you will be required to provide your last 15 months of CPF contribution historystatements along with your NRIC and the lastest pay slipsif applicable.
Unsecured Personal Loans.
According to the Singapore Money Lenders Act, for unsecuredpersonal loans, you can borrow:.
Up to $3,000, if your annual income is less than $20,000;.
Up to 2 months’ income, if your annual income is $20,000 and above but less than $30,000;.
Up to 4 months’ income, if your annual income is $30,000 and above but less than $120,000;and.
Any amount, if your annual take-home payis $120,000 and above.
Please do not over-stretch your finances and undertake a loan which you can not servicelater. Always exercise vigilance.