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Moneylenders in Singapore: Factors to Consider Before Getting a Loan

With the availability of many moneylenders in Singapore, it can be confusing to choose the right one. However, do not rush into the nearest moneylender. You need to weigh the different factors and terms that each moneylender can offer. You should choose a moneylender who can offer you the best loan package. If you are looking for a moneylender, here are the different factors that you need to consider.

2. Eligibility criteria

Moneylenders have different criteria in determining the eligibility of the borrower. For example, some moneylenders have different minimum age requirement. Some require a borrower to be at least 18 years old, while some require a borrower to be at least 21 years old.

3. Approval process

When applying for a loan, you can ask the moneylender as to how soon can you know whether your loan was granted or not.

4. Terms and Conditions of the Contract

Before signing the contract, make sure that you can understand the terms and conditions of the contract, which the moneylender should explain to you in a language you understand. How long is your loan tenure? What will happen if you default on the payment? These are some of the questions you need to ask the moneylender.

5. Interest Rate and Late Interest Rate

In Singapore, moneylenders are only allowed to charge an interest rate that should not exceed 4% per month. Also, if the moneylender charges an interest rate for late payments, then the interest rate should not exceed 4% per month for each month of late repayment. Moneylenders may have varied interest rates, but these should not exceed the maximum. Thus, you should compare the interest rate of each moneylender and see which one is the most favorable for you.

6. Fees and Charges

While the government has set regulations on what fees moneylenders can impose, you should still ask the moneylender what their charges are, and the amount. For example, some moneylenders have a lower administrative fee compared to other moneylenders. Like with interest rates, you should compare the fees of different moneylenders.

7. Repayment schedule

Depending on the amount and interest rate, you need to choose a moneylender who can offer you a flexible repayment plan. Ask for a loan tenure that will not put a financial strain and burden on you.

Looking for a highly-recommended moneylender in Singapore?

When making a loan with a moneylender, you should always look for a moneylender who can give you a hassle-free experience. Thus, you should choose Fortune Credit, a reliable and highly-recommended moneylender that can offer you that much-needed financial assistance.