If you need money for an emergency or a big purchase, you may want to consider licensed money lender personal loans in Singapore. These lenders offer a variety of loan terms, including unsecured and secured loans. They are regulated by the government, so they must adhere to strict lending requirements and charges. Nevertheless, there are still some bad apples out there, so you should check whether a particular licensed money lender is registered with the relevant regulatory agencies.
Licensed money lenders offer access for people with bad credit histories who cannot obtain loans from banks. This makes them an excellent choice for borrowers who need to borrow quickly and easily. However, the interest rates charged by licensed money lenders are usually higher than those of banks. In addition, they often charge late fees up to $60 per month and administrative fees up to 10% of the principal loan amount when a loan is granted. Moreover, they may impose legal costs for the recovery of debt.
A licensed money lender must be able to provide you with clear loan terms and conditions. This includes the interest rate and repayment schedule. They also must verify your identity and income to ensure that you can afford to repay the loan. A reputable licensed money lender will also conduct background checks on borrowers and have an easy-to-navigate website. Additionally, they will not advertise their services via SMS, email, or flyers like loan sharks.
Another benefit of a licensed money lender is that they can approve your loan application more quickly than a bank. In most cases, a licensed money lender can process your loan application within a day or two. In contrast, a bank may take up to five days to review your application.
In addition, licensed money lenders often have a lower maximum loan limit than banks. While banks typically allow you to borrow up to 10x your monthly income, licensed money lenders can lend you only 6x your monthly income. This is because they focus on your current income rather than your credit history.
Licensed money lenders also offer flexible loan tenures, allowing you to choose the best term for your needs. However, if you opt for a longer loan tenure, the monthly instalment amount will be higher. Therefore, it is important to compare the different rates and fees of licensed money lenders before deciding which one to use.