Bank loans are a great idea if you are in need of money for a particular purpose like buying a car or house. But the procedures involved in acquiring a loan from a bank are often complicated and take quite a bit of time. If you are in need of quick cash or do not have a great credit score, certified money lenders are a good option to consider.
A cursory search online will show you there are quite a few money lending companies in Singapore. While it may be tempting to go with a lender who offers the lowest interest rates, it may not always be the best idea. In fact, there are some important points to consider when choosing a money lender.
The money lending business in Singapore is regulated by the Registry of Money Lenders. Before you choose a money lender, make sure the organization has a valid license to operate in the country. This can be done by checking the list of approved money lenders on the website of the Registry of Money Lenders.
Look for money lenders who have been in business for several years and have a track record of providing satisfactory services. If possible, ask around among your trusted social networks for recommendations. Another good idea would be to enquire with several different money lenders before making a decision.
Most money lenders have several different products.
Go through the website of the money lender to find a product that suits your requirements. Make sure you understand the terms and conditions associated with a product before you select it. If anything requires clarification, be sure to ask the lender. Check interest rates and different options for repayment to know if you can afford the product.
The Registry of Money Lenders has set a limit on the amount of interest that money lending organisations can charge on their loans. There are also other regulations regarding operations that intend to make sure that lenders do not take unfair advantage of their customers.
As a borrower, you should be clear about these governing rules and confirm that the lender you may have selected adheres to them. Keep in mind that the government might regularly modify aspects like permitted interest rates once in a while and it is your duty to have up-to-date information.
In short, choosing the right money lender requires a bit of research. Fortunately, most of it can be done online from the comfort of your home. The key is to ensure the lender has a valid license, has the products that suit your requirements and is adhering to the law.