What you need to do and know after getting a loan approved

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October 19, 2016
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What you need to do and know after getting a loan approved

Despite your best preparation; financial emergencies can hit you anytime. Thankfully, you can easily take a loan from licensed money lenders in Singapore to deal smartly with your emergency situation. While it could be easy to get your loan application approved, your responsibility starts right from the time you borrow money. As a financially wise person, you should take some necessary steps and know a few things after being granted a loan. Here’s a look.

Check how much they charged you for the loan approval

In Singapore, licensed money lenders are allowed to charge a loan approval fee. Your money lending company can deduct the amount upfront from your principal loan amount. However, there’s a cap on how much they can charge. As per law, the loan approval fee should not be more than 10 percent of the principal loan amount. That means, if you take a loan of $20,000, they can charge you up to $2000. Check this to make sure you received the right amount of loan from your lender.

Avoid late payments

Your money lending company can charge you up to $60 for each late monthly repayment. To avoid this penalty, make sure that you pay your monthly instalments well in time.

Collect receipts

If you are a sincere person, you are already doing this. Here’s a quick reminder. Whenever you repay in cash, be sure to collect the receipt duly signed by the reputable money lender. Also, check the receipt for any spelling mistakes. Check whether your name, date of repayment, and amount have been mentioned right in the receipt.

Keep your loan account statements handy

First, you should collect your loan account statement from your lender. In fact, your lender should send you all the details every 6 months. If did not receive the statement, be sure to contact your money lending company and collect the statement from them. Once you receive the statement, you should read the document thoroughly to check for any spelling or printing mistakes. It is also important to keep the documents handy for future use.

Know how to complain

If you borrow from an acclaimed moneylender in Singapore, you may not need to lodge a complaint. But it is always a good idea to know how to lodge a complaint if need be. In Singapore, all complaints against moneylenders are reviewed by the Registry. At this stage, they may want to talk to you face-to-face for more details. They may want to know about your loan transactions and your key concerns. There are strict laws to protect the rights of borrowers in Singapore. You can even take your case to the Small Claims Tribunal. It is also possible to take legal steps against a fraudulent moneylender under the Consumer Protection (Fair Trading) Act.

Know your legal rights, but also know that borrowing from a licensed moneylender in Singapore is safe. You just need to make sure you are borrowing from a reputable money lending company.