Besides obtaining the loan from banks and financial institutions, you can get a personal loan from money lenders. Do not be conned by many unscrupulous agents that claim that they are legitimate because they are mostly loan sharks (or ah longs). Legal money lenders are governed by the law to offer such services where they meet the requirements so that it is easier for their customers.
In most cases, you will engage them when you need a quick loan which does not require a lot of processing time. This type of loans are ideal for those not wanting to involve too much in documentation or procedures. Short-term loans are among the most common form of loans in this context. This is where you will work with a licensed money lender and it is extremely important to engage a party who is reliable, legitimate and accommodating.
Take note that legitimate money lenders are approved by the ministry and their interest rates are regulated. In fact, they are not allowed to charge fees as they like. While there are certain fees involved in processing, you can always check with the Ministry of Law and Moneylender’s Association of Singapore if in doubt.
How to choose the best moneylender
Remember that it is a tedious process in choosing your moneylender. In fact, there are some issues that you need to consider heavily before deciding on anything. This includes the following:
- License – The moneylender you select MUST be licensed. There is no two-ways about this. You should ensure that you are engaging someone who is recognized and accredited by the government which is under the purview of the Ministry of Law. Once you have selected a legitimate registered moneylender, it simply means that they have met the legal requirements as stipulated by the government. This is a good thing because you can always check with the authorities should any disputes arise.
- Terms and Conditions – You need to always refer to the Terms and Conditions in borrowing money. In fact, it should be among the first document to review before signing anything. As the name implies, it is your point of reference every time. This is the document that includes all the crucial information including repayment plan, interest rates and borrowing period, among others. The Terms and Conditions are usually designed to suit your needs and financial repayment ability. So, it is catered only for you and should not be generic. Remember that this document is the contract you signed and MUST be agreed by both parties to be legally binding
- Fees and charges – There is bound to be some form of fees or charges involved when you borrow money even from moneylenders that are registered and legitimate. There is currently no strict regulation on what these fees are like. Hence, each moneylender could have a different fee for their services. This does not mean that you are bound to pay whatever is charged. It is your legal right to know what the service fees are and how much they entail before deciding on anything. The best thing to do here is to make comparisons with other moneylenders before making your final choice
- Significance – when selecting your moneylender, choose one with a good reputation or one with high significance. After all, you will be disclosing your personal and confidential information with them and you need to ensure that you enjoy the relationship. Check out reviews of customers who have worked with these moneylenders and if you need to contact them and learn more about their experience. The reputation works wonders here because that’s probably your first impression before proceeding further.
We offer services that will surely help you in terms of convenience. We offer a directory of all the licensed money lenders in Singapore. this is where you will find a full directory of all the registered money lenders who are regulated by the government. Learn more about who are those that offer packages like personal loans, business loans and such.
Platform for Registered Money Lenders
Besides offering services for those seeking money lenders, we provide the platform for money lenders as well. As long as you are registered with the Ministry of Finance, we have the perfect platform for you to find the best customers. We connect you with the customers in locations of your choice will providing you with the channel to spread more awareness of your products and services.
Applying for loan
At our platform, we offer all the information about loans that are available in the market. Apart from that, our platform is perfect for loan applications as well. All you need to do is to search for the loan provider of your choice and then you are ready to go. From there, you can then search for the coinciding loan package that you are interest in. After that, click on the Apply button and you will then be subsequently connected to the loan application process. Send in your documents via the link and you will then be contacted as to whether your loan application has been successful.
Questions you might ask
Here, you might have many questions like where to find the most reliable source of money lenders and who are the ones that can be counted on. We compile the list to help you go through this with the least concerns and worries. We ensure that you have come to the right place to find out about products and
- For education – If you are looking for a loan to finance your child who is studying, entering to university or to pay your school fees, this is where you can start. From long term to short term loans, check them out here
- Loans for vehicles – whether you are buying a car for your personal use or for commercial purposes, check and see which hire purchase loans are most suitable for you. Learn more about the duration of the loans as well as any other issues involved
- Loans for property – This list gives you all the information you need about financial providers to help finance a house, a shoplot, a commercial property or even a piece of land. As long as it is a real estate product, this is where you can start. Check out what the current base-lending rates are and who provides them
- Loans for businesses – This is the ideal place to start looking for loans if you are planning to start a small business, an entrepreneurial business or your own startup. Find those who can help you start your business with the capital size of your choice and get started immediately.
- Personal loans – You can find a list of personal loans here available for application if you like. For your own personal use, no questions are asked as to why you need the money as long as you pay them back as scheduled
Bank loans in Singapore
This is by far the most straightforward type of debt-financing schemes. Most of the banks in Singapore offer such loan in one way or another like DBS, OCBC and others. In most cases, you need to offer some form of collateral before the loan can be approved and you will have to decide on the total repayment schedule.
This is offered via various banks and financial institutions across Singapore. If you meet the requirements, you are eligible to borrow up to SGD100,000 and you can borrow this amount for reasons like upgrading of equipment or for daily operations. The interest rate is 5.75% minimum for a maximum of 4 years.
Loan Insurance Scheme
The LIS or Loan Insurance Scheme is a scheme that insures the business from risk of default. This is offered to startups by governments on a co-sharing basis and can be applied by firms with both local and oversea operations. The LIS does not come with a maximum loan quantum where the figures are usually determined on a case-by-case basis. Factors like interest rates and loan tenure are determined based on the risk and profile of the borrowed.
Local Enterprise Finance Scheme
The Local Enterprise Finance Scheme or LEFS involves banks and financial firms that offer funds mainly in factory-based businesses. The interest rate is 4.75% minimum and usually not more than 4 years. For the loan tenure of more than 4 years, the interest rate is not less than 5.25%. in fact, companies can apply for up to SGD15,000,000 for reasons like purchasing of business premises, equipment, upgrading of machineries and others.