As parents, you’d do whatever it takes to provide for your children, and it takes a lot of financial sacrifices for that to happen. With the rising cost of living in Singapore, more often than not, financial assistance like personal loans can go a long way. Personal loans can be sourced from a legal moneylender with so many available options when it comes to finding the best licensed moneylender in Singapore.
Here are three steps you can take to find the best licensed moneylender in Singapore:
- Verify the licensed moneylender
The first step to looking for the best licensed moneylender is to differentiate between an illegal money lender and a legal moneylender.
It is crucial to note that it’s prohibited for money lenders to solicit loans via Whatsapp messages or phone calls, so if you are contacted to obtain loans in these manners, the money lender may likely be unlicensed. This is when verifying with the Ministry of Law comes in handy. The ministry has compiled a list of licensed money lenders in Singapore for you to verify whether or not a money lender is indeed licensed and suitable for your financial needs.
- Compare low-interest rates and repayment options
You should also look through the verified list of licensed money lenders in Singapore using a legitimate comparative platform like Personal Loan Finder to look for the best licensed moneylender for the type of loan that you need.
This is where you can compare low-interest rates and crosscheck various licensed money lenders according to your financial means, eligibility, and financial needs.
It’s a free platform that sources a list of licensed money lenders in Singapore and consolidates them together on a single platform so borrowers can make enquiries to multiple companies at once. This helps you save time and effort from going on to 10 different websites to search for the right legal moneylender.
- Know your loan options and eligibility
Below are some of the types of loans you may want to take. Click here for the full list.
- Personal Loan
A personal loan is a specific loan that is given to individuals without collateral for the creditor in the case of bankruptcy. For Singaporeans and PRs, you would need to prepare your ID, last drawn payslips, CPF contribution, etc. to apply for a personal loan. As the maximum amount you can borrow depends on your annual income, you are required to provide income documentation such as payslips, CPF contribution, and income tax for the last three months.
- Business loan
If you have financial troubles securing your business, you can apply for a business loan at licensed moneylenders.
Requirements for Singaporeans and PRs:
- Company ACRA
- Company bank statement for the last three months
- Recent invoices
- Balance sheet for the past year or two
- Past 1 or 2 years P & L
- All surety and shareholder CBS
- Recent Company Staff CPF contribution
- Director income tax
- Tenancy agreement
- Debt Consolidation Plan
In a situation where your debt exceeds more than 12 times your monthly income, this plan can help you restructure your debts by consolidating all unsecured loans from various banks into a single financial institution at a lower interest rate. When approved, all your unsecured loans to various banks are closed and consolidated into a single Debt Consolidation Plan account where you can then repay all your unsecured debts monthly for up to 10 years.
Read more here to know more about the types of loans to take and approved interest rates of licensed money lenders in Singapore.