While money lenders offer flexible loan repayment schedules and speedy loan applications in addition to many other perks, it’s always a good idea to do your homework before getting a loan. Foremost, there are plenty of private money lenders in Singapore to borrow from. Additionally, they offer a wide variety of loans — from fast cash loans, monthly loans and debt consolidation loans, to medical loans and bad credit loans.
Still, it’s of utmost importance to get a loan only when it’s truly a ‘need’, not to fulfil a ‘want’ or mindlessly take up an urgent loan under financial stress.
So how does one go about choosing the right money lender when applying for personal loans? It may be difficult but not impossible. Although the choices are aplenty, taking the time to research and pick the right money lender goes a long way in making your personal loan journey more pleasant.
Let us help in your search for the right money lender with our round-up of handy tips and tricks you can follow to narrow down and choose the right money lender for your needs.
Prioritise credibility
It can be tricky looking for money lenders especially when there are so many options available. What should you look out for?
With increasing reports of scammers and unlicensed money lenders swindling people of their hard-earned money, the first thing you have to find out is if the money lender is in the list of registered lenders by the Ministry of Law. Dealing with a licensed lender is one of the safest ways to take out a loan if you find yourself unable to get one from the bank due to reasons like a history of bad credit and poor credit score.
It is also important that you look for money lenders with good reputation. This can come via word of mouth from your friends and family or even online reviews. Don’t be afraid to ask for advice from the people around you, especially if it is your first time applying for a money lender loan. A recommendation from someone you trust can help put your mind at ease when it comes to deciding whom you should borrow from.
The Internet is a great platform for you to conduct thorough research on the various money lenders in the market. Keep a lookout for information on different loan packages, interest rates, and charges that can help you determine whether the money lender is legitimate or not.
Consider how fast you can get your loan
Time is of the essence when you need urgent cash loans. In times of emergency, finding a money lender that can offer you quick and efficient loans (e.g. instant online loans) can make a huge difference.
While every money lender has its own operating procedures, choosing a lender that addresses your needs promptly can help get your finances going. When you are stuck in a crisis, you wouldn’t want to sit around and wait for long background checks and approvals. It is important that your loan request can be processed quickly.
Compare interest rates and the repayment period
Make sure to compare money lenders’ interest rates and loan quotes to find a lender in the market that best suits your budget and needs. Avoid accepting the first loan offered to you; chances are there will be a better option out there worth considering.
Agreeing on a repayment period that is suitable for you is just as important. Most money lenders have repayment terms of up to 12 months, with some even offering loan tenures of up to 24 months. Discuss with your money lender the best repayment term for your unique financial situation as this would affect your ability to repay the loan on time.
This is very important — being able to afford your monthly repayments lowers your chances of making late repayments, hence avoiding unnecessary late payment interest and penalty charges that add up quickly.
Bottom line
There is no one-size-fits-all approach when it comes to applying for a loan. It is therefore important that you choose a money lender that can best address your needs and concerns. Choose a money lender that is credible and efficient, and half the battle is won.
Be aware of seemingly low interest rates that appear too good to be true. Take your time to conduct proper research on the interest rates and repayment terms before choosing the right loan package for your needs. Most importantly, ensure that the money lender you’re interested in borrowing from is fully licensed and registered with the Ministry of Law’s Registry of Moneylenders!
96bm Credit is a 24-hour money lender in Singapore that offers online loan applications round-the-clock, either through the traditional application form or Singpass login. If you’re looking to come down to the office to apply for the loan, you’ll be glad we’re an Ubi money lender that’s only a 4-minute walk from Ubi MRT station.
96bm Credit offers tailored loan solutions coupled with top-notch professional service for all your loan needs. Contact us today to find out more!
About the Author
Armed with years of experience crafting content for brands and companies across industries, Clio is ever-passionate about putting out top-notch, well-researched personal finance pieces that seek to educate.
