In this article, we are going to discuss the advantages of taking a loan from licensed moneylenders Singapore. Also, we will discuss why your credit history is not important and the documents you need to submit.
Why should a person take a loan in Singapore?
Singapore is known to be one of the most expensive countries in the world. The people who live in Singapore know the true meaning of the expenses which they have to pay every month. There are different expenses like rent, travelling, groceries, maintenance, and other expenses. So sometimes, when a person does not take a loan in Singapore, it becomes hard for them.
They will sometimes not have enough money to pay for all the things that they need. Firstly no lenders were counted as legal or as a financial institution. Until the Ministry of Law (MinLaw) decided to make rules and regulation which declared some of them legal.
They made this because of the increasing number of lenders in the market. Also, they keep a check on these lenders every month, and they make a list of them. This list is put up on their official website, which tells all the legal lenders in the market. They will see which lender is following the rules and then put their name on the list.
If you are planning a wedding in Singapore or a vacation, or you need money for medical expenses. Then taking a personal loan is a necessity in Singapore due to everything being so expensive. Also, MinLaw is bringing new laws to the market so that they can protect these borrowers. It is a kind of a safe thing to take a loan in Singapore as it will save you from any unexpected expenses.
What are the advantages of taking a loan from a moneylender?
Below given are some of the advantages which you can receive from the moneylender.
- Faster approval speed
They will approve all your loans faster and will also give you a loan within minutes or hours. That is because they do not have a long chain which they have to follow to get approval. Also, the time taken to approve an unsecured loan will take around 5 minutes for approval by the lender. In an unsecured loan, the lender will not have to inspect the asset about its value, so it is approved quickly.
- Unsecured loans
Loans without any kind of collateral are given with a high rate of interest in the market. This will only happen if the total loan amount is more than $50,000 due to a huge amount. The interest is huge due to the risk which the lender is bearing as they don’t know about repayment. That is, they don’t know whether the borrower will return the loan amount or not. An unsecured loan is also one of the common things which you can get from these moneylenders.
- Immediately accessible
This means that once you have filled out the application and submitted it. You will just have to wait for the loan to get approved and the amount to be transferred to you. After that, you can use this money wherever you want, and there will be no restrictions on it. The only thing is that you cannot use this money in any kind of illegal activity, or you will be jailed. This takes a quick time because there are no big formalities that you have to complete.
- Regulated activities
All the activities of the licensed moneylender are regulated by the Singapore government. That is, all of the licensed moneylenders are approved by the Ministry of Law. The terms and conditions which they put on a loan contract and the amount. All the things which are carried out by these lenders are regulated by the MinLaw. This means that everything from the interest rate to the terms and conditions is made by MinLaw. Those lenders found not following these things will be expelled from the list of licensed lenders. Once when a lender is expelled, they can be taken back only if they follow the rules and regulations properly.
- No harassments
This means that a licensed moneylender will never harass someone or the borrower. This means that they will never try to overcharge them or take unfair charges from them. The legal moneylender will never do anything to you as they are under surveillance by the MinLaw. Those lenders who found illegal things will be called illegal lenders.
- Set rate and agreements guaranteed
This means that the rates and also the agreement will already beset by the MinLaw. Also, they will not do anything of their own will, like the amount of the loan and everything. They will discuss it with the borrower and then set these kinds of things.
- No shady business
This means that the legal lender will have a proper office where the borrower will have to meet the lender. They will discuss the terms and conditions of the loan face to face to avoid misunderstanding.
When you are taking a loan from a legal lender, you will not have to worry about your credit score. This means that they will give you a loan based on your income history and no credit report. You can also take an instant cash loan Singapore from these lenders that too very quickly.
What are the documents that you need to submit?
Here is the list of all the documents that you need to submit to take any kind of loan.
- You will have to bring your ID and an NRIC.
- You will have to bring proof of residence with you, like an electricity bill.
- You will have to bring a tenancy agreement.
- You will have to show them the employment letter.
- You have to show them the recent 3-month payslips.
- You have to tell them your SignPass name.
- You will have to bring a valid working permit.
- You will need to bring a passport if you are a foreigner.
- You will have to bring the latest bank statement where money is deposit only if you are a foreigner.