There are many circumstances that require fast cash: medical bills, anniversaries, down payments, studies, house renovations, everything you do in this life involves money. Getting a loan is not difficult, what is more difficult is finding out what moneylender to go to when in need of cash. In this article we are going to look over some of the elements which you must take into consideration when choosing a moneylender, so that you can eventually choose the best licensed moneylender for your needs.
What is a Credit Company
We’re going to start by defining the concepts we are going to address in this article. A credit company is, essentially, a financial company, which the Cambridge dictionary defines as “a company that provides loans”. The primary role of these institutions is, therefore, that of providing loans. These institutions are different from banks in the sense that they are often more flexible in terms of requirements, which means that it is technically easier for your loan application to get approved.
In Singapore, these companies must be licensed by the National Government and they are often referred to as “moneylenders”. If you’re thinking of contacting moneylenders, the first thing you must do is visit the online Registry of Moneylenders and make sure that the credit company in Singapore that you choose is licensed by the government.
Why Work with A Credit Company in Singapore?
There are many benefits you can get from working with moneylenders, which you cannot get from banks or other financial institutions. Here is a list of some of them:
- The chances of loan approval are higher: your application’s approval is subject to multiple factors, including credit score and income. These two factors can get in your way of obtaining a loan in Singapore. However, in comparison to banks, moneylenders are more flexible in terms of loan payment and in terms of approval, which increases your chances of getting a loan.
- Their approval times are a lot faster: Not just that, but their system is typically more digitalized and you can apply for a loan fully online. Companies are able to get you a personal loan in as little as 24 to 36 hours. In extreme circumstances, the fast approval rate can truly make the difference and help you out when you need cash the most. This gives moneylenders the edge when it comes to performance.
- Their range of loans is a lot bigger than a bank’s. The best licensed moneylender offers multiple loans that you can choose from. These can vary from personal, payday and instant loans to business, lifestyle, renovation, debt consolidation and mortgage loans. Basically, regardless of whatever your need may be, Singapore’s best licensed moneylender companies can get you the right loan for your need fast.
What to Look into When Choosing the Best License Moneylender
The more options you have, the more difficult it is to find the best among the mediocre. That’s true in any field. In this section we are going to look over some of the elements which are a must when deciding on a company, if you want to go for the best. Here they are:
1. Licensing and Reputation
Obviously license and reputation come first when looking for the best of the bunch. If the moneylender you’re considering is not licensed by the National Government, you should not work with them. Licensed moneylenders are subject to multiple guidelines set by the Government, all set in place in order to improve your borrowing experience.
According to the guidelines provided by the Government, licensed moneylenders are not allowed to solicit for loans via text and they must meet the borrower face to face before signing the documents. This is done in order to protect you, the borrower, and ensure good and lawful practices.
When it comes to reputation, the best way you can check their image is to look at their reviews. Do not stop at the reviews on their website, check their social media platforms as well. Another important thing you can look for is awards and prizes that the moneylender proudly showcases on their website.
2. Interest Rates and Fees
The more moneylenders there are, the more options you have in terms of rates and fees. The moneylenders are limited by law to a maximum of 4% interest rate per month and, while that is nationally regulated, there are some other things you can ask about in order to make the best choice:
- Ask the moneylender if they use the flat interest rate or the effective interest rate. This gives you a better image of the final cost you’re going to pay.
- Ask the moneylender if there are any additional fees you should know about. Depending on the financial agency you’re going with, you might expect processing fees, late payment fees or early repayment fees. This is normal; what is not normal is that you do not know about the costs, so you should ask about it beforehand if the moneylender doesn’t transparently share this information with you.
3. Loan Amount and Tenure
Another aspect that is different depending on the moneylender company you end up going for is the loan amount and the tenure.
Some companies are known for offering smaller loans for shorter periods of time, while some other ones are known for going for bigger loans that spread over a few years. Depending on your financial needs, going for a company that has more experience with the type of loan you need can be more beneficial.
The same goes for tenure. The longer the repayment plan, the more interest you end up paying in the long run. However, the monthly rates might be lower and more manageable. It is all depending on your need and, if you’re not sure what option to go for, a financial consultant can offer you the best advice in this regard.
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