Money is a basic necessity, and everyone needs money. But, managing all the necessities in a limited amount of money is a tough task. Therefore, sometimes you need a loan to complete your task. A loan is very helpful at the time of emergency healthcare, child’s education, buying a home, or tackling any other unforeseen situations. But, getting a loan is very difficult these days, as most of the youths are also applying with you.
Sometimes, your low credit score becomes an obstacle in the approval of the loan. It is close to impossible to sanction a loan from the government financial organizations. Even if you get one, you required to spend a huge amount of time on that. But, in today’s world, things are becoming simpler after the rapid emergence of private money lenders. And the best part is most of them do not need any kind of credit score.
How to Choose the Best Private Money Lender in Singapore?
The number of private money lenders is increasing day by day, which is a good thing for the borrowers. But, on the flip side, now it is difficult to choose the best among the crowd. To simplify your problem, here are some useful tips that you can consider to find a Moneylenders Singapore.
Gather Information about the Institutions
In the modern world, the most powerful people are those who have more information. More often than not, you will get a good deal if you have adequate information. Start gathering information about the financial organization in Singapore. You can ask your colleagues, family, friends, and relatives for the recommendation. If you find any, just keep a note of that institution. Once you are done with it, search “Moneylenders Singapore” in Google, and you will find plenty of options, and make a note of each one.
Be a Spy
Now you have a list of at least 50 companies in your pocket. On a Sunday morning, open your laptop with a cup of tea, and start inquiring about them. As it is virtually impossible to carry out detailed research on each company, start with their reviews and rating. Generally, an efficient institution takes care of its customers and earns good reviews. Eliminate the lowest 20 financial institutions or those who are getting less than a 3-star rating. So, now, you have a list of 30 companies who are doing reasonably ok.
Interest rate is the biggest concern for most people who are trying to get a loan from a private institution, but the truth is not the same. Though most private players have a relatively higher interest rate than their government counterparts, there are a number of institutions like CRAWFORT Singapore, who are providing loans with a minimum interest rate. So, try to shortlist those who have a low-interest rate. Duration is another important aspect that you need to consider before applying for a loan. Try to shortlist those who are providing a longer duration to pay back your loan. As a result, it would be easier for you to repay the big amount.
Choose the EMI structure Plan
Several companies demand the entire amount in two or three go, which became difficult for the customers to pay. Therefore, eliminate such kind of companies, irrespective of their offers. A monthly installment is the best way to repay your loan. With the monthly installment, you will not feel like paying a loan. Additionally, you can manage your spending for the month according to the loan amount.
Avoid those Who is Asking for Credit Score
Most of the people opt for the private banking institutions, owing to there low credit score. But, several companies ask for the credit score. Their basic aim is to exploit you and charge a higher interest rate. So, those who demand the credit score, eliminate them instantly.
Opt for a Licensed Money Lender
In the last few years, the crime related to loan scams increased significantly in Singapore. Several institutions are claiming to be licensed, but they do not have one. They will behave suspiciously and ask you to do unprofessional things like sharing your bank details, taking signature in a blank copy, and many more. The best way to avoid such a scam is to visit the workplace. Even then, if you have doubts, call 1800-255-000, and report about the institution, immediately.
Here is why you need to choose a licensed money lender for your loan
Most of the licensed moneylenders like CRAWFORT Singapore have a low-interest rate, thanks to the increasing competition. Therefore, taking a loan from a licensed moneylender will cost you significantly less.
Your personal information, like account number, house address, and various others, are vulnerable with a non-licensed one. The government of Singapore has a strict policy about the privacy of customers. As a result, these companies cannot do anything, which will further harm you.
The procedure for getting the loan amount is significantly easier with a licensed moneylender. You only required to fill an online application, and they will take care of other things though it is recommended to visit the workplace at least once.
If you take a loan from a licensed moneylender, the government will help you in any problem, as the administration works closely with both the borrowers and lenders for the proper utilization of laws.
The Final Step
Once you have done these processes, you only have four to five names on your list. Take an appointment from each of them and visit their workplace on a working day. Discuss their plans and share your necessities. Bring a copy of their loan structure from each of the shortlisted companies. In your free time, compare their plans, and find the one which is the most suitable for you.
Once you got the loan amount, it is wise to save at least 30% of the total amount for repayment in the future once you start earning from the loan balance, save for the repayment.