As the expenses of living in Singapore are increasing constantly yearly, many people may be caught offside when some urgent matters startlingly surface that require money. In this kind of case, it's cash that you may not have but you have to have.
So you make a decision to borrow money. Instead of encroaching on family, family and chums, you turn to banks and licensed moneylenders for a personal loan.
Lending standards for banks and licensed moneylenders:
For annual income of S$30,000 or even more than that , you can apply for credit arrangements that grant you credit up to four times your monthly salary;For yearly salary between S$20,000 to S$30,000, you can borrow up to twice your monthly pay;For annual income below S$20,000, you can only borrow up to S$3,000 from licensed moneylenders at maximum 18% interest per annum;To borrow from banks, you39;ve got to have a clean credit report, as it is the 1st factors they look at. So if you haven39;t been regularly servicing your Credit card bills or your hire purchases, then you're disadvantaged.However, it is quite tricky to borrow from licensed moneylenders, as they happen to be not standardized in their dealings. Every one of the 243 licensed moneylenders (as of 1 February 2012) has its own set of terms for loans, and personal loans are the most well liked in their business.
Things worth doing before seeing any licensed moneylenders:
Budget your monthly take home income and whittle it down to your dispensable amount after accounting for all of your financial responsibilities; and Derive the amount you can pay back in full each month from your disposable amount, having put aside some money for savings.
Things to ask the licensed moneylenders:
The amount you'd like to borrow and irrespective of whether or not they can lend you;The rate of interest and how it is calculated;The repayment period; and Any other extra fees and charges that will apply.Things to think about in choosing the preferred moneylender:
The repayment amount matches or is less than your worked out repayment amount;Understand all of the terms the moneylender put forward; and The moneylender's demeanour and attitude.Things to notice when signing the contract:
The contract's content matches the verbal reason by the moneylender;The contract lists correctly the principal loan amount, the rate of interest, the repayment period and the repayment amount due monthly;The moneylender passes you the full loan amount as agreed without taking any amount for any charge, if any, must be told to you earlier; andYou are guaranteed you39;ll get a dated and signed receipt for each repayment and/or charges, as well as a half-yearly statement from the moneylender.On your side, you must:
Immediately pay back all monthly installments;If possible pay back your principal amount earlier, if there is not any clause in the contract that proscribes it; andKeep all invoices and statements of account for future clarification if needed.Do not borrow more than you can pay back, and keep to your payments precisely.
So you make a decision to borrow money. Instead of encroaching on family, family and chums, you turn to banks and licensed moneylenders for a personal loan.
Lending standards for banks and licensed moneylenders:
For annual income of S$30,000 or even more than that , you can apply for credit arrangements that grant you credit up to four times your monthly salary;For yearly salary between S$20,000 to S$30,000, you can borrow up to twice your monthly pay;For annual income below S$20,000, you can only borrow up to S$3,000 from licensed moneylenders at maximum 18% interest per annum;To borrow from banks, you39;ve got to have a clean credit report, as it is the 1st factors they look at. So if you haven39;t been regularly servicing your Credit card bills or your hire purchases, then you're disadvantaged.However, it is quite tricky to borrow from licensed moneylenders, as they happen to be not standardized in their dealings. Every one of the 243 licensed moneylenders (as of 1 February 2012) has its own set of terms for loans, and personal loans are the most well liked in their business.
Things worth doing before seeing any licensed moneylenders:
Budget your monthly take home income and whittle it down to your dispensable amount after accounting for all of your financial responsibilities; and Derive the amount you can pay back in full each month from your disposable amount, having put aside some money for savings.
Things to ask the licensed moneylenders:
The amount you'd like to borrow and irrespective of whether or not they can lend you;The rate of interest and how it is calculated;The repayment period; and Any other extra fees and charges that will apply.Things to think about in choosing the preferred moneylender:
The repayment amount matches or is less than your worked out repayment amount;Understand all of the terms the moneylender put forward; and The moneylender's demeanour and attitude.Things to notice when signing the contract:
The contract's content matches the verbal reason by the moneylender;The contract lists correctly the principal loan amount, the rate of interest, the repayment period and the repayment amount due monthly;The moneylender passes you the full loan amount as agreed without taking any amount for any charge, if any, must be told to you earlier; andYou are guaranteed you39;ll get a dated and signed receipt for each repayment and/or charges, as well as a half-yearly statement from the moneylender.On your side, you must:
Immediately pay back all monthly installments;If possible pay back your principal amount earlier, if there is not any clause in the contract that proscribes it; andKeep all invoices and statements of account for future clarification if needed.Do not borrow more than you can pay back, and keep to your payments precisely.
About the Author:
Ruper Joans is a contract author, who provides his services to a site which specialies in Personal Loans. Check out his work at earlypayday!
No comments:
Post a Comment