Singapore is an open global market with lots cash flow and a free market system which enables people to invest highly with minimum risk involved. In another advantage, banks have made affording personal loans hassle free with low interest rates and an approval processing only of a few hours or a couple of days. The customers are provided with debt protections and credit card debt albeit high interest rates. On the other hand, there are many other private organizations who are so called moneylenders willing to provide loans to anyone who approaches them. The process is really simple and brisk, all through with just a bare minimum of 30 minutes of processing time. According to the Singapore Ministry of Law, there are about a 160 licensed money lenders with 5 more who are currently suspended.
Concept of Moneylenders:
These money lending organizations usually target individuals who are facing difficulty in acquiring loans from bank who require a considerable amount of credit statement to issue a loan along with collateral. In addition to this, banks even require the individual to prove the ability to pay back and thereby often reject the applications of low income. Many individuals who are trapped in this situation, moneylenders become the benefactor by providing personal loans to pay for an emergency. In these cases, moneylenders demand a high interest rate which maybe anywhere between 4-5 times higher than bank rates which is helped by the desperation of loan. Another factor to be taken into account, is the stipulated time for the repay along with the interest which burdens the individual into further debt in case of a mishap. One has to search extensively to find low interest moneylenders for personal loans in Singapore but thanks to the licensed moneylenders who come to rescue.
Moneylending Organizations and Interest Rates:
The interest rates vary as per the sum of the loan and the period but are considerably much higher than the credit card or a personal loan from the bank. The government has put a cap on the interest rates at 4% which still raises a lot of eyebrows around. Therefore, one must be vary and cautious of the fact that repayment to a moneylender is far more expensive and excruciating as opposed to a bank. The banks focus on people with credit history and don’t entertain personal loans for people who make less than S$20,000. The moneylenders target and lure the latter and offer small size loans which limits their cap to a quarter less than your pay check whereas a bank can offer 2-6x of your pay check. It is due to the fact that moneylending organizations are much smaller than banks and can’t afford a very risky credit profile. This helps small size money lenders to make loans extremely quickly while the personal loans in banks are competitive and efficient as they are made available within 24 hours of application. This speed still pales in the face of the nimble work that licensed moneylenders operate with. Some of the reputed licensed personal loan moneylenders with lowest interest in Singapore are:
- Katong Credit
- Cash Express
Services and Facilities by Various Moneylenders:
All these are reputable and known moneylenders who serve their client’s need with utter care and provide reliability. The prominent advantage of borrowing money from reputable moneylenders is low interest rate as instituted by the state along with fast processing, simple requirements and debt consolidation. As well as, they ensure efficiency and transparent transactions on display to maintain healthy relationship with their customers. Credit21 offers one of the lowest interest rates and also provide loans for not only small amounts but also for asset purchasing or school fees. These personal loan moneylenders with lowest interest have designated portals where applications are sent and follow-ups are taken from the customers for the service required. Some of the lenders have designed plans and packages to suit the needs of different types of customers accordingly and have flexible repayment options. Finding a loan as a foreigner might be difficult but moneylenders offer secure and privatised loans with adequate amount of security on charge. Some of the companies also charge a minimum processing fee before you obtain their services and one needs to be vary to compare all the prices and figure the best deal. Credit33 is another licensed moneylender which offers loans at interest as low as 1% per month and provide help in case of emergencies.The minimum period of repayment is about 6 weeks and the maximum being 12 months at minimum annual percentage at 1.20% and maximum at 48%. A graph plotted between the interest rates charged by various sources of loan shows a clear demarcation of moneylenders leading the bar with 4% which may rise in private organizations.
Factors to be considered in Choosing a Moneylender:
As there are innumerable moneylenders out there who are both state authorised and others under the cover, it is extremely important to find the right lender specifically for the purpose. One may be perplexed as they encounter similar services offered by numerous moneylenders and find it hard to decipher among them. It is advisable that you go through the terms and conditions of the moneylender which states the amount, interest rate and the repayment plan. One must choose a flexible moneylender and offers the terms that are more in favour of your financial needs. The next is to ensure checking the charges applicable for different moneylenders before choosing a particular one. Also keep a close eye on the reviews, customer satisfaction, its license and the reputation which the low interest personal loan moneylender in Singapore bears apart from the plans it offers.
There are also other personal loan options such as credit card debt, bank personal loan, pawn shops which are way cheaper and affordable than such moneylenders. It is strongly suggested to opt for bank loans unless you have no access to such facilities. It is also possible to consider borrowing a few hundred dollar from a relative or a family member over a moneylender but you must be extremely coherent if that’s your last resort. Although they are regulated and licensed by government, it is important to reconsider borrowing from such organizations. The highly liberalised banks and the banking system prevalent in Singapore promotes good deals at personal loans and although they are competitive, one can easily give a shot at banking loan. There are only a few handful of personal loan Singapore lowest interest moneylenders, but are really efficient and pro-customer in nature.