Receiving a loan from a bank might not be easy and occasionally you are in need of an emergency loan with rapid approval time to address an emergency expense. Unsecured personal loans fromlegal money lenders in Singapore may be the mostsuitable choice in certain circumstances.
Some customers might have financial demands for a renovation loan, school fees, emergency medical fees, vacations or someunforeseen events whichrequire urgent financial needs.
Obtaining A Personal Loan from a legal and licensed Money Lender InSingapore
Right before getting a personal loanfrom a licensed money lender, we encourage you to read up more about the Money Lenders Act in Singapore. As a borrower, you rightsare safeguarded under the law in Singapore– look at this guide to borrowing moneyfrom money lenders in Singapore in advance of taking a personalloan.
New Regulations For Money Lenders In Singapore (Effective Oct 2015).
New regulations for money lenders are included to reduce a borrower’s borrowing cost (interest rate) and also to manage the number of default payments. As aconsumer, it is a good idea foryou to learn the details about administrative fees, contractual terms which are unjustifiable to you, unprofessional andunfair money lending practices and the interest rates for your money lending contract.
The new regulations stipulates a cap of 10% maximum upfrontadministrative fees, 4% maximum nominal interest rate (NIR) monthly, 4% maximum late interest rate per month, loan payment late fees being capped at$60 per month, no other additional fees allowed to be charged by any money lender and acap on borrowing cost.
Considering A Money Lender In Singapore.
Before you take a personal loan from a money lender, make sure that the money lender is licensed in Singapore. Once you haveshortlisted a list of money lenders, do your due diligence and check out themoney lender’s reviews online.
Applying For A Personal Loan With a Money Lender.
You must be employed and you will be demanded to provide your last 15 months of CPF contribution historystatements also your NRIC and the lastest pay slipsif relevant.
Unsecured Personal Loans.
According to the Singapore Money Lenders Act, for unsecuredpersonal loans, you can borrow:.
Up to $3,000, if your annual income is less than $20,000;.
Up to 2 months’ income, if your annual income is $20,000 and above but less than $30,000;.
Up to 4 months’ income, if your annual income is $30,000 and above but less than $120,000;and.
Any amount, if your annual earningsis $120,000 and above.
Please do not over-stretch your finances and undertake a loan which you can not servicelater. Always exercise prudence.