Emergencies come unexpectedly. You will probably need the money to deal with it. And you’ll find yourself in a bind if you don’t have savings. A quick personal loan is the only option available to you. But, the banks may not approve your loan immediately, and you cannot wait and spend time on the paperwork. Don’t be discouraged, because not all doors are closed yet.
You can take out a personal loan from a approved money lender if you have a bad credit history. The lender will approve your loan quickly and there will also be less paperwork. However, you will have to pay a higher interest rate on your loan. And you cannot trust every money lender in Singapore.
You need to look for the one that has a legal license. Here are some suggestions to help you choose the right lender for a personal loan.
Visit the Department of Justice website
Unauthorized lenders may present themselves as approved and convince you to borrow from them. You shouldn’t be scammed. According to the website of the Ministry of Justice, unlicensed money lenders can trick you into texting or messaging on WhatsApp. They will claim that they are representatives of lenders.
Report these messages to the police, as it is illegal in Singapore to apply for loans through text messages, phone calls, or social media platforms.
You can find the list of approved lenders on the Department of Justice website. This list is updated monthly. Check it out before visiting any lender’s websites for information on the terms and conditions of the loan.
Meet Money Lenders
No money lender will give you a loan without meeting you in person at an approved business location. Singapore law requires them to perform face-to-face verification of your identity and personal data.
You can take advantage of this meeting to ask your questions and remove your doubts. If you feel that a money lender can’t give a convincing answer, you’d better go no further. Borrow money from a lender who has nothing to hide and provides information.
Find out about the loan conditions
A personal loan is not free money. You will have to pay a large amount of interest until the end of the loan term. So, don’t rush into signing a loan agreement. First of all, you need to understand the terms of your loan.
Ask the money lender to explain them to you in plain language. Also get a copy of the loan agreement and go over it with a fine tooth comb. You should research the repayment schedule, the interest charged by the lender, and the applicable fees.
Select the approved money lender whose terms are not scandalous. And you shouldn’t have any trouble meeting its contractual terms.
Check review sites
Confidence is the key factor when borrowing money from lenders. You have to choose the one who has a reliable and trustworthy reputation.
All the lenders will tell you that they are the best and that they have a great reputation. Don’t take every word of their claims as gospel. You need to do your own research and verify their statements.
Visit review sites and read what others are saying about a lender’s loan terms. You will get to know the pros and cons of borrowing money from them. You need to select an approved lender who has received mostly positive reviews and a high rating.
Identify the right approved money lender
The right money lender won’t threaten you or use abusive language. They will treat you with respect. In addition, they will not ask you for your SingPass username and password and will not take away your NRIC card, driver’s license, passport or other personal documents.
When you borrow money, you don’t have to sign on a blank page or an incomplete loan agreement. You will get a complete and valid copy of the loan agreement. They also will not withhold part of the loan amount for no reason.
You will find advertisements from approved lenders in business or consumer directories or on their websites. You can also spot their listings inside or outside their business premises. They are not allowed to advertise in other places.
Always get a personal loan from a licensed money lender. However, you should check the loan terms and conditions, interest terms, and repayment schedule before signing a contract.