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Things You Should Know Before Applying for Personal Loans Singapore

By Edited Nov 13, 2013 0 0

Borrowing from Licensed Moneylenders in Singapore

If you are one of those who are not comfortable borrowing money from friends and relatives whenever you find yourself in a financially tight spot, then you should start looking for personal loans Singapore. In this time and age where almost everyone goes through financial challenges, you do not have to feel embarrassed about going to banks or licensed moneylenders. You will be the one who will pay back the borrowed money anyway.

Financial institutions follow a certain set of criteria whenever they grant loans to applicants. The amounts they approve are dependent on the annual income of borrowers:

* S$30,000 and up – Can borrow up to four times their salary.
* S$30,000 to S$20,000 – Can borrow up to two times their salary.
* S$20,000 and below – Can borrow up to S$30,000 at no more than 18% APR from licensed moneylenders.

In order to get personal loans Singapore approved by banks, you should have great credit standing. This is the most important factor that you have to work on. Any late payments in your credit card statement put you at risk.

You could opt to borrow from licensed moneylenders however, you have to check their terms and conditions separately in order to find one that you are most comfortable with. Each of them has their own standard when it comes to personal loans Singapore approvals. It is therefore important that you canvass for the best moneylender and not just settle with the first one you meet.

If you want to go ahead and apply for a loan with licensed moneylenders, you have to take a closer look at your finances first. Deduct all your monthly payables from your monthly income in order to determine the amount you could spare for your personal loans Singapore payment. Of course, do not forget to set aside some money as savings.

Once you meet with a loan specialist, there are several things that you need to ask them:

1. Will you be able to lend me this particular amount of money?
2. What is your interest rate and how do you calculate it?
3. What is the repayment term?
4. Are there extra charges and fees that I should know about?

You should consider and compare all their answers so that you will be able to choose the right company from where you will be getting personal loans Singapore. Below are some of the things that can help you decide on the best lender:

* The amount that they are asking you to pay back should be equal or less than the amount that you have calculated.

* The lender has terms and conditions that are easy to understand.

* The moneylender's reputation and financial standing should be sound.

If you have picked your preferred moneylender, then it's time to go ahead and submit your application. However, you still have to be on guard during contract signing. The stipulations on the contract should be consistent with what the agent had advised you. All the details of your personal loans Singapore such as the loan amount, APR and repayment terms should also be correct.



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