A Comprehensive Guide to Borrowing Money
Living in a city like Singapore can be quite expensive. The cost of commodities keeps rising with time. Therefore it is quite challenging to maintain a proper lifestyle characterized by comforts and a few luxuries. Maintaining your lifestyle, especially when living in Singapore, can be difficult. But there is no need to worry about this issue! An effective way to combat this challenge, which is practiced by many Singaporeans, is to borrow money. There is no shortage of licensed money lenders and other financial institutions such as banks in the city of Singapore to aid you. This guide will help you know all that you must know about borrowing money.
Decide the loan type
The first step when it comes to borrowing money is figuring out the type of loan you want. It is vital to make this decision in an informed manner. You must first understand how much you know about borrowing money. There are some fundamental questions that you should ask yourself in order to decide on the loan type you need. First and foremost, you should know how much money you need and what you need it for. In case of minor expenses, personal loans are a great option. You must also remember that in Best Money Lender will give you a loan based on your annual income. The amount of money you can borrow is dependent on how much you’re earning annually.
Singapore Private Money Lender offers loans on both variable and fixed repayment terms. Thus, you must know what kind of repayment terms work for you. After you have figured the things above out, you have to write an application to the Credit Bureau of Singapore (CBS) for your credit report. The CBS will charge you $6 for your credit report, but it essential to have your credit report because there are a few money lenders in Singapore who do not offer loans without the borrower’s credit report. In case of a bad credit report, you should wait for some time, make it better, and then borrow money.
Moneylenders or financial institutions
After having figured out everything concerning your loan type, you must decide whether you want to borrow money from a licensed money lender or be aided by financial institutions. https://crawfort.com is the webpage of Crawfort. It is a financing company that is gaining popularity in the field of moneylending in Singapore. You can visit https://crawfort.com and find out about the workings of this company. It is one of the leading companies in Singapore for lending money. This company is a very safe option for borrowing money as all transactions are performed responsibly and in a safe, law-abiding manner.
Your specific needs will be taken into complete consideration while formulating your loan plan. There are many advantages to choosing to borrow money from Crawfort. The entire lending process is digitalized. Starting from loan application to repayment, everything is digitalized, which makes the process of lending highly convenient and easy. You can make loan repayments through SAM/AXS machines. There is no need to visiting the office to make these repayments. Another significant benefit of choosing Crawfort is that this company gives utmost importance to confidentiality. You can rest assured that all your personal information will be protected. You would not have to be worried about the details of your loan information being disclosed to other parties.
The documents you need
In case you have decided to apply for a personal loan, owning to the fact that such investments are not secured, you must be prepared to have your financial standing and financial integrity thoroughly. It has to check by your chosen money lender before approving the loan. After deciding on your loan type, your eligibility for the same and visiting the Ministry of Law website to see the loan amount you can borrow, it is important to assemble all the documents that have been stated as follows:
- Employment proof and proof of income.
- Residency proof
- Past and present credit score as well as CPF statements.
- Employment letter, tenancy proof, bank statements, and employment pass.
Although most money lenders will not need all the aforementioned documents, it is better to have everything ready. It is important that you know that in Singapore, money lenders approve loans on the basis of income and no credit history. Special loan packages are provided to individuals who have a poor credit history, with special terms of repayment.
Important legal information
There are specific rules and regulations that have lain down by the Ministry of Law, Singapore, concerning money lending, which is followed by all licensed money lenders. These strict rules are there to put a limit on late fees, interest rates as well as other costs incurred by the borrower. The rules have been stated as follows:
- The maximum interest that can be charged by a licensed money lender is 4 percent per month.
- The fee for administrative reasons that are charged can maximum go up to 10 percent of the principal loan amount that has been granted.
- The moneylender cannot charge the borrower with respect to the rate of interest, late interest, administrative fees, etc., an amount which is the total cost, which is more than the principal loan amount. This means that the overall cost cannot be more than the principal loan amount granted to the borrower.
Borrowing money made easy
It is pivotal that you check the list of licensed moneylenders and only choose amongst the authorized money lenders to save yourself from any unpleasant experience when it comes to borrowing money. After your loan has been approved, you need to ensure that you have to keep a copy of the Note of Loan Contract; all the receipts of the payments you have made, as well as a copy of every receipt, every account, and other essential documents. You should just keep in mind these basic guidelines so that the idea of applying for a loan doesn’t seem as daunting anymore. Being well informed is critical when it comes to borrowing money.