Obtaining a loan from a bank may perhaps not be easy and in somecases you mayneed an urgent loan with rapid approval time to cover an emergency expense. Unsecured personal loans fromlegal money lenders in Singapore may be the very best choice in certain instances.
Some customers might just have financial demands for a renovation loan, school fees, emergency medical fees, vacations or some unexpected events which demand urgent financial needs.
Obtaining A Personal Loan from a legal and licensed Money Lender InSingapore
Before taking a personal loanfrom a licensed money lender, we recommend you to study further about the Money Lenders Act in Singapore. As a borrower, you rightsare guarded under the law in Singapore– check up on 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 tone down a borrower’s borrowing cost (interest rate)as well as to manage the number of default payments. As aconsumer, it is beneficial foryou to learn the details with regards to administrative fees, contractual terms which are unjustifiable to you, unprofessional andunfair money lending practices and the interest rates for your money lending contract.
The new regulations specifies a cap of 10% max 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.
Selecting 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 requested to provide your last 15 months of CPF contribution historystatements as well as 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 earningsis $120,000 and above.
Please do not over-stretch your finances and undertake a loan which you can not servicelater. Always exercise prudence.