According to the Economist Intelligence Unit 2020 Worldwide Cost of Living survey, Singapore is one of the costliest cities in the world. Managing expenses and paying bills without any assistance can be challenging when you live in such a city. In Singapore, things like wedding costs or medical bills can easily cost thousands of dollars. When you don’t have adequate money to pay your bills, the only option you have is to take a loan. You can approach a bank or money lender in Singapore. Bank has a lengthy loan process which might not serve the purpose when you have urgent needs. In that scenario, you can take a loan from a licensed money lender Singapore. Here are a few reasons to take loans from licensed money lenders.
Different Types of Loans
Licensed money lenders offer various short-term loans to meet your urgent needs, like a Payday loan, Personal loan, business loan, and foreigner loan. Payday loans are perfect for situations where you need to pay bills or need money to meet minor emergencies. Payday loans are short-duration loans, and you need to pay the loan when your next paycheck arrives.
Banks do not offer such short-duration and flexible loans. Hence, a licensed money lender in Singapore is your best option for short-term loans.
Unsecured loans
An unsecured loan is a financial risk for the lender. Hence, banks and lenders ask the borrower to provide some collateral for the loan. Singapore licensed moneylenders offer unsecured small amount loans to people. You don’t need to provide any collateral in unsecured loans, making the loan approval procedure shorter and faster.
Low-Interest Rates
One of the reasons to take loans from Singapore licensed moneylenders is the loans have low-interest rates. The interest rates depend on your credit history, type of loan, amount, earnings, and many more factors.
Low interest rates mean you save money in the long term, and the installments are also affordable. The maximum interest rate charged by most licensed lenders is less than 4% per month.
Fast Approval
Since most loans do not require collateral, licensed lenders process and approve loans faster than banks and other financial institutions. In some cases, it only takes a few hours to process the loans, and the loan amount is deposited in your bank account.
Apply Online
Singapore licensed moneylenders allow people to apply for loans online. The whole process is simple. Select the type of loan you want, check the eligibility requirements, and fill the loan form. Unlike banks and other financial institutions, licensed money lenders process and approve loans on weekends and public holidays.
Lower Loan Processing Fee
The processing fee charged by registered money lenders is comparatively less than other financial institutions. According to some loan experts, the loan processing fee does not exceed 10% of the principal amount. The lower processing fee makes the loans more affordable to the borrower.
Loans Available for People With Bad Credit
Banks and most financial institutions check the loan applicants’ credit scores before approving loans. If you have a bad credit score, the chance of loan approval is slim. The bank can ask you to provide collateral for loan approval, and the interest charges might be higher.
On the other hand, licensed money lenders also offer payday loans and personal loans to people with bad credit.
Lower Late Fees
You often find yourself in such a situation where you cannot make the monthly installment on time. In that case, you are required to pay a late fee along with a monthly installment. The late fee charged by licensed moneylenders is lower in comparison to other money lending institutions. In most cases, the late fee is not more than $60.
To sum up, these are a few reasons to take loans from licensed money lenders in Singapore.
