Many of us will need to borrow money at some point in our lives. It may be due to an emergency or for other reasons like home renovations. In any case, a short-term loan can be a great option to tide you over. Luckily, there are now plenty of financial institutions that offer quick and convenient loans. It is also possible to compare rates online so you can choose the best deal. You can even use a credit comparison platform like Lendela to increase your chances of getting approved. Alternatively, you can visit a physical money lender to apply for a loan.
Licensed money lenders are a great choice for those looking to borrow money in Singapore as they comply with the laws of the country especially those stipulated by the Ministry of Law. Unlike loan sharks, a licensed moneylender will charge you proper interest rate and they are not allowed to charge any late fees or processing fees on top of the principal loan amount. Furthermore, they are mandated to charge a reducing balance interest rate instead of compounding interest rate which means that you will pay lower interest in the long run.
When choosing a moneylender to work with, always ensure that they are registered. It is also advisable to look for one with a physical office as it makes it easier to trace them in the event that there are any issues. You should also note that legal moneylenders are required to sign contracts physically, which further separates them from loan sharks.
It is a good idea to read the terms and conditions carefully before signing any agreement. This will help you avoid any misunderstandings in the future. Moreover, you should also make sure that you understand the amount that you will be expected to pay back in full at the end of your loan tenure. In addition to this, you should also check whether you are eligible for a particular loan. If you are unsure about the eligibility of a loan, it is recommended that you seek advice from a debt counseling Singapore service.
Borrowing from friends and family is another option for those who need cash quickly. However, this route can be tricky as it can lead to strained relationships. Furthermore, it is important to keep in mind that if you are not able to repay your loan on time, the consequences could be severe.
If you are unsure about your capacity to repay your loan, it is a good idea to try to renegotiate with the lender. This can reduce your interest payments and help you get out of a sticky situation.
Lastly, it is crucial to avoid unlicensed money lenders and loan sharks at all costs. These individuals are not only dangerous, but they can also be life-threatening. The good news is that the Ministry of Law has made it very easy to verify moneylenders’ licenses and to find trustworthy ones. In addition, it is also possible to get loans from banks and other reputable lending institutions.
