Things to consider when choosing a moneylender in Singapore

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Things to consider when choosing a moneylender in Singapore

Moneylenders are fast turning out to be saviours for Singaporeans in a financial crisis. Your existing finances may just not be enough to settle those piling bills and emergency expenses. When choosing between banks and money lenders, banks can be a hassle when it comes to some quick money. Friends or even family might not be in a position to lend you any cash.

In such cases, money lending businesses, with their quick and easy approval, can help you get debt-free. However, you must not rush and choose just about any company. Read on to know what to consider when looking for a licensed moneylender in Singapore.

Is the interest rate reasonable enough?

Since money lenders charge slightly higher interest rates than bank loans, you should be careful and make sure that you’re not paying any extra money. Compare interest rates offered by different companies, also looking at their credibility and quality.

Be sure about whether the moneylender is licensed

This goes without saying. If you are borrowing money from an unlicensed money lender, you’re inviting trouble. Check whether your chosen lender is recognised by the IPTO (Registry of Money Lenders in Singapore). Do check whether they are experienced in the finance industry. However, beware of money lenders asking for your Sing Pass ID or password, or not returning your personal ID documents. Licensed lenders advertise only in business directories in print/online media, on their websites, and within or at their business premises.

What are the terms of repayment?

This is very important. Choose a lender that offers flexible terms of repayment. Check for it before submitting your application. Doing proper research and asking friends and previous borrowers can also reveal which companies offer the best terms of repayment. The lender should also explain the whole process in clear terms to you.

Do they have high referral rates?

If you want to borrow money from a good lender, simply look for their previous record. This can be done by finding out companies with high referral rates. The lender that you choose should also have friendly consultants to answer all your queries too.

How quickly can you get money?

Time is the most important especially when you’re trying to get a moneylender to give you money. It is usually not a huge sum and therefore you can simply forget any companies that take too long to process your details. However, you will have to be sure that a money lending agency giving you quick cash is genuine. As far as time is concerned, the process should be over inside a day and you should get your money on the same day of request.

Can you make early redemption without penalty?

Your money lender should not have any qualms about you paying off the loan before the loan term. Preferably, look for a company that allows early redemption that also waives off interest on complete early redemption.

Look for a lender that has a good online presence as well, and offers a range of loan services. You can consider getting a payday loan that you can pay off when you get your salary. Hence, research about the terms at which different moneylenders offer payday loans.