Despite being popular, the thought of a fast loan in Singapore leaves behind an extensive grey area. Specifically, the process of acquiring fast cash triggers some confusing questions. For instance, how do you approach lending companies? What should you avoid when seeking fast cash in Singapore? Are there any special requirements for gaining access to the best loans? If you’ve been trying to crack such questions, you’ve come to the right place. This article aims to focus the spotlight on the DOs and Don’ts of getting a personal loan in Singapore.
- DO Check the Ministry of Law’s Website for lender verification
If Applying for the first time, don’t trust any lender that comes your way. Singapore’s lending market is awash with illegitimate lenders who are full of empty promises fueled by honeyed words. Fortunately, the Ministry of Law has an updated list of all licensed lenders on their website. Opting for a licensed lender attracts a string of benefits, including regulated interest rates, ethical debt recollection, and legal protection of borrowers.
- DON’T Settle for the First Lender you Come Across
When Applying for quick cash, it’s easy to prioritize the first lender that gives you a listening year. Yet, doing this can make you miss out on better deals. Before making up your mind, exhaust your research by launching a thorough comparison of each lender tabled services. What are their repayment terms? If these terms are too uptight for you, which other company has a better alternative?
- DO Align the Loan with your Personal Budget
Many money borrowers are oblivious of the lender’s motives to lure them into accepting the maximum possible loan. You don’t have to stretch your borrowing capacity just because a lender convinces you to. If you want to avoid racking up unnecessary debt, it’s advisable to work with a budget. In simpler terms, don’t borrow beyond what you’re able to pay, and don’t take loans for leisure. For instance, assuming you need some quick cash to clear a $1000 medical bill, it would be senseless to borrow $1200. Borrowing the extra $200 will only incur additional interest that may be difficult to pay off in the future.
- DON’T: Ignore your Credit History
Are you familiar with your credit score? If not, you’re setting yourself up for major disappointment. Anyone who is eyeing a fast loan in Singapore should aim for a relatively good credit score in order to score the best rates. The best credit score in Singapore is rated AA, while the worst is rated HH. Since it’s a reflection of your repayment capacity, a good score gives you a huge borrowing advantage over other money borrowers. However, it’s still possible to access instant loans even with a bad score. The only problem is that you’ll have to shell out hefty interest charges.
- DO Confirm the Lender’s Eligibility Criteria
On spotting a potential lender, your next step should be to determine their eligibility criteria. Yes, getting a fast loan in Singapore is fairly easy, but you won;t always get what you’re looking for. For instance, what credit scores do the lender favor the most? Does your income bracket fit the bill? Are there any specifications concerning age, nationality, and employment status? Asking these questions will save you from agony later. The worst thing is to arm yourself with the necessary documents only to be turned away at the door. And while most fast loan companies in Singapore are flexible and welcoming, the borrowing policies can vary wildly. Therefore, always visit the company’s website to view their acceptance rates and their criteria for picking clients.
- DON’T sign a loan contract you don’t Understand
A typical loan agreement should include a valid date of the agreement date, the interest rates ( stated as Annual Percentage Rate), repayment terms, and the contract members’ signatures. As a rule of thumb, never let the ink dry on a loan agreement that’s vague or confusing. Especially, pay special attention to the repayment terms. Will you be required to pay on the lender’s demand? Can you pay the loan in installments? When are the interest rates subject to change? Seeking clarifications and asking relevant questions will prevent sinister lenders from creating loopholes that they’ll use to extort you in the future.
Looking for some fast cash in Singapore? The Dos and Don’ts above will help you elude common mistakes and land a loan agreement that suits you. Good luck!